Bar Refaeli probed for tax fraud, must get permission to leave the country

Gag order lifted on case of supermodel, who was questioned for 12 hours Wednesday; authorities allege she falsely claimed not to live in Israel, failed to report ‘tens of millions of shekels’ in benefits

Israeli supermodel Bar Refaeli in Cannes in 2011. (Shutterstock)

Israeli supermodel Bar Refaeli is being investigated for potential tax offenses, including allegedly trying to avoid tax by falsely claiming not to be living in Israel, Hebrew-language media reported on Thursday. The reports came after the lifting of a Wednesday gag order that had sent gossip-mongers into overdrive. 

Refaeli, who spent 12 hours in questioning at the Tax Authority offices in Tel Aviv on Wednesday, was initially said to be suspected of failing to report over NIS 1 million (some $250,000) in celebrity benefits. Later Thursday, however, reports said the allegations concerned “tens of millions” of shekels. She also allegedly sought to avoid tax by falsely claiming not to be living in Israel. 

Refaeli, who denies any criminal offense, has been required to get the authorities’ permission if she wishes to leave the country.

Refaeli is suspected of not reporting that she had someone else pay her rent at an apartment at the luxury W high-rises in Tel Aviv; underpaying an interior designer in exchange for helping him with advertising; and receiving a free car from a company, also in exchange for help with advertising, according to news site Ynet.

Refaeli’s mother was also reported to be involved in the case.

The model, whose scads of campaigns for various companies has made her one of Israel’s most recognizable faces on the world stage, is also a mainstay of celebrity websites and gossip rags in Israel and the US.

But her career and jet-setting lifestyle may be cramped by the investigation.

The Tel Aviv Magistrate’s Court determined Thursday that Refaeli can leave Israel only in coordination with authorities and after depositing a sum of NIS 250,000. A third party would also have to put up a guarantee of NIS 500,000, Ynet reported.

Earlier Thursday, while the supermodel’s name was still under gag order, some Hebrew-language news sites tried to circumvent it by providing hints for observant readers.

An article on news site Bizportal, captured and posted on Facebook, featured a top-down acrostic of Refaeli’s name in Hebrew.

News site Walla, while not giving Refaeli’s name in its article, nevertheless tagged the supermodel in publishing the piece.

Giora Aderet, Refaeli’s attorney, denied the suspicions against the supermodel and her mother.

“There is no drama. In the end, this is just a civil dispute. No one cheated anyone else. It will all clear up soon,” Aderet told the NRG news site.

Military says supermodel, products she advertises should be shunned in bid to fight draft dodging

The Israel Defense Forces has decided to step up its campaign against Bar Refaeli. Slamming the supermodel as a draft dodger, a senior IDF official has urged Israeli consumers to boycott Refaeli and all the products advertised by her.

Head of the IDF's Personnel Directorate Major General Avi Zamir visited the Interdisciplinary Center in Herzliya and spoke to students about"the struggle for each and every recruit in mandatory and reserve service – a national social mission."

At the end of the lecture one student asked the Major General why the IDF is not making an effort to enlist supermodel Bar Refaeli, the most successful Israeli model in the world today, who got married and received an exemption from military service.

Zamir seemed to be prepared for the question. Since his appointment as head of Personnel Directorate a year and a half ago, he has stepped up the all-out war against draft dodging. "The State of Israel is a law-abiding state," he said.

Zamir explained that "Refaeli presented a valid marriage certificate, which could not be disputed. At the end of the day she needs to look at herself in the mirror. We are a society with a military, and Bar Refaeli should not be in Fox (clothing brand) advertisements – if she advertises them, you shouldn't buy their products – and that will be the answer."

In order to stress the magnitude of the issue, Zamir noted that within a decade some 70% of 18-year-old

Israelis will not enlist into the IDF. "If we look 10 years ahead we will be in a situation where only 30% of youths will join the army. That's a large quantitative gap; a reality we cannot come to terms with," Zamir said

Sources close to the supermodel were unimpressed with Zamir's remarks. "The government and military need to conduct a thorough internal examination; instead of attacking Bar – (Zamir) should deal with more important things like releasing (kidnapped soldier) Gilad Shalit," said Tzipi Levin, Refaeli's mother.

'Serves as an Israeli ambassador' (Victoria's Secret Catalog)

Levin added that "Bar was not hurt and has no reason to be offended by the remarks. It flatters us that Zamir finds time to talk about Bar, but she does not take these matter to heart."

Meanwhile, most of the companies Refaeli advertises were not alarmed by the call to boycott their products.

"We are proud to be represented by Refaeli," said lingerie company Bonita de Mas. "We appreciate her contribution to the country and society and respect her privacy."

A spokesperson at FOX clothing company said that "Fox encourages enlistment to the IDF and is against a policy of draft dodging. The company has been active in the community for years and will continue to be active in the future.

"Refaeli did not serve in the IDF for reasons that are personal. Refaeli loves the State of Israel, and as an international model she serves as an ambassador for our country all over the world."