Bar Refaeli, one of the world’s most recognizable supermodels, has been arrested on charges of tax evasion in Israel. According to Agence France-Presse, Refaeli was arrested at her home alongside her mother, Tzipi, and questioned by police for several hours.
Refaeli has been accused of lying about her residency in order to evade tax on millions of dollars in income earned abroad. She’s also under suspicion for accepting “celebrity discounts” for goods and services in exchange for publicity rather than cash payments, as well as free luxury accommodations and cars, including a Range Rover and a Lexus, worth “over a million shekels” ($257,000 US) in exchange for photo opportunities. She allegedly did not report the value of any of the items on her tax return. To avoid suspicion, authorities allege that she registered her Tel Aviv apartments in the names of her mother and brother.
Refaeli’s mom, Tzipi, a former model, was also arrested on allegations that she did not report “dozens of millions of shekels” in foreign income.
Under Israeli tax law, Israeli citizens who live outside of the country do not have to report income received outside of the country; this is in contrast to US law which requires that US citizens report and pay tax on income from all sources, including those outside of the country. Refaeli reportedly considers herself an expatriate and claims the apartments are for her convenience when she returns to Israeli.
Through her attorney, Giora Aderet, Refaeli, and her mother have both denied the allegations. Refaeli and her mother were released on bail but were required to turn over their passports to Israeli authorities. Neither is allowed to leave the country without permission for 180 days.
Refaeli has been photographed for a number of high-profile magazines, including the cover issue of the Sports Illustrated Swimsuit Issue in 2009. She has been featured in ad campaigns for everything from champagne (Moët & Chandon) to electronics (Samsung) to cars (Subaru), as well as fashion (Escada, Gap, and Lucky Brand). According to Forbes Israel, those campaigns have been very lucrative: in 2013, she was considered the highest-paid model in Israel pulling in 9 million shekels ($2.31 million US). She currently hosts The X Factor Israel.
In addition to her media appearances, Refaeli was well known in the US as the longtime girlfriend of Leonardo DiCaprio. The pair broke up for good in 2011. Refaeli is currently married to Adi Ezra, an Israeli businessman.
