Bar Rafaeli sentenced to 9 months community service by Israeli court

Model Bar Refaeli was sentenced by an Israeli court to nine months of community service along with her mother, who received 16 months in prison for tax evasion, putting an end to a prolonged court battle. Refaeli and her mother were convicted on offenses of evading paying taxes on income nearing $10 million in a case that sullied the name of the once-beloved national icon. Refaeli entered the Tel Aviv courthouse in a beige T-shirt and wearing a light blue surgical face mask.

Refaeli was accompanied by her father, mother, and flanked by lawyers. According to a plea bargain accepted by the court, the daughter and mother were also ordered to pay a $1.5 million fine on top of millions of back taxes owed to the state. Refaeli’s mother is set to begin serving her prison sentence. The prolonged case, built around Refaeli’s worldwide income and the family’s attempts to downplay her ties to Israel, damaged her well-crafted public image as an informal ambassador for the country.

Still, Refaeli remains a popular TV personality and pitch-woman whose image is ubiquitous on highway billboards throughout the country. In 2019, Refaeli hosted the Eurovision Song Contest in Tel Aviv. The case centers around Refaeli’s residence during years when she traveled around the world in high-profile modeling campaigns, graced the cover of the Sports Illustrated swimsuit edition and had a lengthy romantic relationship with Hollywood actor Leonardo DiCaprio.

Israeli tax law determines residency primarily upon whether the person spent most of the calendar year in the country.

Refaeli claimed that she had not and therefore did not have to declare her income during certain years. Prosecutors rejected Refaeli’s claim and charged her with providing incorrect tax information. Refaeli’s indictment said she earned some $7.2 million between the years 2009-2012 while claiming to reside overseas to avoid paying Israeli taxes on her income.

In previous appeals, an Israeli court ruled that Refaeli’s relationship with DiCaprio did not qualify as a “family unit” and therefore she could not claim his United States residence to avoid paying the full taxes she owed. Refaeli’s lawyers said the plea bargain proved she had not intentionally evaded paying taxes. Refaeli’s mother, who also acted as her agent, was charged with failure to report income, avoiding paying taxes, and aiding someone else in evading tax payments.

The indictment said Refaeli’s mother signed leases for her daughter under the names of other family members to blur Refaeli’s actual residency status and refrained from declaring her own income as her daughter’s agent.