Israeli supermodel Bar Refaeli was summoned by tax authorities in Tel Aviv on Wednesday in order to answer questions over suspicion of tax evasion. Refaeli was questioned for 12 hours and was summoned for questioning again on Thursday, but she was not under arrest.
Tax Authority officials suspect that Refaeli and her mother failed to report “celebrity discounts” they received worth over NIS 1 million ($250, 000).
The Tel Aviv Court ruled on Thursday that Refaeli will only be allowed to leave Israel with the authorities’ approval and after providing a NIS 250, 000 ($64.500) guarantee. In addition, a third party will provide a NIS 500, 000 ($129, 000) guarantee on her behalf. Refaeli was not present at the court hearing.
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Refaeli’s attorneys rejected the allegations: “This is a taxation issue that raises the discussion of who is considered a resident of Israel, ” He said.
Tax Authority officials suspect Refaeli paid rent for her apartment in exchange to publicity for the building ; paid an interior designer for his services by doing publicity for his business; received a car from a company in return for publicity. According to the allegations she is failing to report all of that to the Tax Authority.
Ynet News report that the Tax Authority claims Refaeli did not report all of her income sources. She lived at the YOO Towers in a rented apartment, but the contract was signed by her brother in order to make it appear she has no ties to Israel. Later, Refaeli moved to the nearby W Towers where she lived for three years. the contract for that apartment was signed by her mother in the same manner, even though it was the model who lived in the apartment.
Refaeli’s accountant, who was also called in for questioning, was asked about the rent waiver his client received at the W Towers. The accountant said he did not know that someone else was paying Refaeli’s rent for her.
Ynet News says that according to Tax Authority suspicions, Refaeli’s mother Tzipi was the one behind the deals made with commercial entities and provided false information. She said that she did not report, nor did she think she needed to report, these agreements to the Tax Authority or to the accountant because she did not consider the car deals as illicit benefits.
