Bar Refaeli has been sentenced to nine months community service after reportedly making a plea deal to settle a £2million tax evasion case.
Her mother and former model, Tzipi Refaeli, who has been her daughter's agent for the duration of her career, will serve a a 16-month prison sentence. They will each pay a fine of 2.5 million shekels (£570,000), reports The Times.
Refaeli’s lawyers said in a statement that “the plea bargain makes it clear once and for all that Bar Refaeli did not avoid paying tax on purpose. There’s no dispute that in the relevant periods Bar was in her early twenties, working as an international model and wasn’t involved in financial affairs.
“Today she takes full responsibility for the mistakes made and will pay the price for them. She is sorry that her beloved family had to go through such a difficult period and feels pain at the price her mother will pay.”
The case goes back a decade when she was dating Leonardo DiCaprio, and centres upon claims that she was not living in Israel, so not required to pay income tax there. To allegedly hide she was based in Israel more than she claimed, her mother and brother signed leases for flats in Tel Aviv, purchased cars and carried out other property deals on her behalf.
Her mother also hid foreign earnings from Refaeli’s work as a model, as well receiving various financial favours from Israeli companies on her daughter’s behalf, worth about £500,000. Again, she failed to record as income.
The Israeli tax authorities began a formal tax evasion investigation in 2015.
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