Supermodel Bar Refaeli Arrested for Tax Evasion

Israeli authorities allege Refaeli failed to pay taxes on millions of dollars worth of income.
2:16 | 12/18/15

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Transcript for Supermodel Bar Refaeli Arrested for Tax Evasion
And we are back now with the story of one of the most beautiful women in the world facing some ugly charges. Supermodel bar refaeli has been arrested in Israel charged with tax evasion for failing to report income and free gifts including luxury cars. ABC's Linzie Janis here with the story. Good morning, George. She's the "Sports illustrated" cover model who has turned looking good in a bikini into a multimillion dollar fortune but this morning authorities accusing her of mishandling those millions. Right here for me. Reporter: Bar refaeli this morning best known for this steamy 2009 "Sports illustrated" cover and for dating Leonardo Dicaprio being investigated for failing to pay taxes on millions in income. Israeli authorities allege iing refaeli lied about living outside of Israel even putting a swanky apartment in her mother's name to be exempt from paying taxes on earnings abroad. Investigators arresting and questioning both women for several hours then confiscating their passports. Overnight their lawyer saying they did nothing wrong telling Israeli media there's no drama and this is just a civil dispute. Israeli media sources reporting the 30-year-old swimsuit model is also allegedly accused of failing to report hundreds of thousands of dollars in free gifts including a rent-free apartment and free use of luxury cars. The taxing authority is saying, you have to claim that product and the value of that product in the same way you would have to claim a paycheck that was provided to you in exchange for your services. Reporter: Refaeli who received a style icon award in 2013 reportedly earned over $2.3 million that year, working on campaigns for brands including the gap and Samsung. This case is going to be a wake-up call for many individuals who are accustomed to receiving big gifts in exchange for using their image, using their likeness to promote a product. Reporter: Refaeli and her mother have been barred from traveling abroad for six months without permission from Israeli authorities, both could face serious fines and, of course, if she can't travel that's bound to affect her income going forward. Bound to impact so many others running to their cpas to make sure they have all their Ts crossed. Staying inside the lines.

This transcript has been automatically generated and may not be 100% accurate.

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