Zipi and Bar Refaeli signed a plea bargain with Tax authorities - Zipi will serve 16 months in prison

The Refaeli family and the prosecutor's office reached agreements in a case in which model Rafael Rafaeli and her parents are suspected of tax evasion and false reports. According to the agreements, Tzipi Refaeli would want a 16-month prison sentence and Bar Rafaeli would want a nine-month sentence for service work. The prosecutor's office filed charges this morning with the Tel Aviv Magistrate's Court as part of a plea bargain for tax offenses.
According to the agreements, subject to payment of the tax amounts in accordance with the determination of a civil tax official, the parties will jointly petition for a fine of NIS 5 million. According to the arrangement, Bar Refaeli will return it from the civil appeals filed in connection with the tax assessments to the Supreme Court for 2009-2010 and to the Tel Aviv District Court for 2011-2012.
One and a half years ago, the Tax and Economy Prosecutor's Office informed Bar Refaeli and her parents, Tzipi and Raffi Refaeli, that they are being prosecuted under a tax offense hearing on suspicion of providing false information to the tax assessor and hiding relevant information in order to conceal Bar Refaeli's affiliation with Israel.
According to the indictment filed today, Tzipi Rafaeli is charged with answering a false answer to a question asked by the order, using fraud, deceit and subjugation, omitting a report - all with the intention of evading tax (for her income from a parent agency fee) or helping after evading tax. Tzipi is also charged with misdemeanors for making an incorrect report and delivering wrong news without reasonable justice. Bar Refaeli is charged with misdemeanor misrepresentation.
In one of the civil proceedings conducted by Bar Refaeli - which dealt with where her life center was during the years she had a relationship with Leonardo DiCaprio - she was charged in April 2019 with NIS 8 million tax payments on her income in 2009-2010 as a resident of Israel. There is another, yet to be decided, procedure for 2011. The agreement will exhaust all tax and penalty payments for the disputed years.
Attorneys Ruth Litback and Moti Lazar, who represent Bar Refaeli in the criminal proceedings, said: "The plea agreement makes it clear once and for all that Refaeli Bar has not acted with the intention of evading tax. It is undisputed that at the relevant times, Bar was in her early twenties, working as an international model and not dealing with financial issues. Bar takes responsibility for mistakes made today, and will bear the cost involved. "
According to the first indictment, in 2012-2009, Bar Refaeli claimed to the Israeli tax authorities that she is a foreign resident of the United States, who does not owe tax reporting and income taxes in Israel on income that generated NIS 25 million, while her mother worked to hide her affiliation with Israel in various ways For example, in lease agreements for apartments in Yu and W towers in Tel Aviv, which were rented for Bar, it is noted that her brother and mother are the tenants and her name is not mentioned. in the future.
As part of the mole hearings, Tzipi Rafaeli, as her daughter's business manager, hid the mole official from the apartments. She gave wrong facts and gave false answers about the assets, and used deceit, deceit and trickery to deliberately help the bar evade tax. Bar Refaeli also gave the assessing officer incorrect information that could be relevant to determining her residency.
According to the second indictment, Tzipi Rafaeli was charged, in 2014-2007, she received NIS 2.5 million in fees for her activities abroad as an agent for Bar Refaeli, directly from the companies that employed Bar Refaeli. This, in addition to the income of Bar Refaeli for her operations abroad. At the request of Tzipi Rafaeli, and in order to evade tax, the agencies transferred the fees to overseas bank accounts in the name of Bar Raphaeli, or to the accounts of companies under its control and other foreign accounts. Abroad, with the intention of evading tax, and presenting them in the tax assessments as Bar Refaeli's income, for which it is claimed that they are not taxable in Israel.
According to the third indictment, Tzipi Weber Rafaeli did not report to the tax assessor overseas revenue of NIS 4.5 million produced in 2007 and held in a company in Singapore owned by Bar Refaeli. The two did not disclose to the taxpayer the existence and income of the company.
According to the fourth indictment, in 2015-2009, Bar Refaeli generated NIS 2.4 million in Israel revenue received for use of its name for promotion and public relations. Thus Bar Refaeli received a discount on rent in the apartment at Hugh's Towers; Payment of rent in apartment at W Towers; Land price discount for buying an apartment in the Blue Project; Free use of vehicles; Receiving shares from Quick Check; And discount on interior design services. The revenue was not included in the annual reports submitted to the assessee until the date of the open investigation and was not specified in any bookkeeping books. The court will be required to approve the agreement.