The tax evasion case against Israeli model Bar Refaeli in his home country finally came to an end recently, as various media reports that Refaeli has pleaded guilty to tax evasion by a Tel Aviv court. As a result of the plea deal, Refaeli and his mother Tzipi Refaeli will pay fines of NIS 2.5 million – about $ 730,000 each – as well as nine (and in his mother’s case, sixteen) months of labor. of general interest.
This is in addition to the back taxes owed to the Israeli government in the first place, which amounts to approximately US $ 2.3 million. This comes from the income Refaeli earned during her modeling career between 2009 and 2012, while Refaeli claimed her primary residence was with ex-boyfriend Leonardo DiCaprio in the United States, but Israeli tax officials argued that it was only an attempt to evade the payment of income tax. his home country.
Those officials said Refaeli used her relationship with DiCaprio as easy tax evasion and that she was in fact living in Israel for most of the period in question. Israeli tax law states that if you spend the majority of a calendar year in the country, you must declare your income and pay the corresponding tax, and Refaeli’s assertion that his relationship with DiCaprio was a “family unit” residing in the United States was dismissed by the court.
Refaeli and his mother (who acted as a financial agent during the period in question) signed a plea agreement with the state accepting fines, community service and back taxes, but in a press release, Bar lawyers say it all happened without his knowledge:
“During the relevant period, Bar was in his early twenties, working as an international model and not involved in financial matters.”
The tax evasion charges against Bar Refaeli and his mother stem from nearly $ 10 million in revenue between 2009 and 2012.