Thursday, December 17, 2015

The Rich Are At It Again; Cheating on Their Taxes - The Bar Refaeli Story

There is a long list of celebrities who cheated on their taxes. Considering their net income, it’s quite amusing that they avoid paying taxes since they are not exactly poverty-stricken.

The latest culprit is Israeli supermodel Bar Refaeli. The woman dodged serving in the army by entering into a fake marriage, so it should not come as a big surprise that she stiffed her government who uses the funds to protect its citizens with e.g., iron dome.

Bar Refaeli tried to weasel out of the allegations by claiming that she lived abroad. Well, that did not exactly fly - the Israel Tax Authority had the woman arrested for allegedly evading millions of dollars in taxes. She was grilled for 12 hours.

As a supermodel, she received a lot of freebies for which she should have paid income tax on. She didn’t, just enjoying her perks such as luxury apartments and cars without any accountability. The woman also stayed in luxury apartments registered under her mother and brother’s names, and also used Range Rover and Lexus cars free of charge. The Israel Tax Authority notices that she enjoyed unreported income amounted to “dozens of millions of shekels.”

The Refaeli women defended themselves, claiming that the model lived outside of Israel. Needless to say, that did not fly. The Israel Tax Authorities were not amused, showing that DiCaprio’s ex and her Mummy enjoyed “celebrity discounts” such as free interior decorating, which they never reported.

The homes of both Refaeli women were raided this week. On Thursday, they were arrested and released on bail. They were forced to fork over their passports and can’t leave Israel without permission for 180 days. Quel horreur!

Moral of the story - don’t cheat on your taxes! It’s just not worthwhile. Tax authorities all over the world have long memories, unlimited resources, and the tenacity to hunt you down. Do yourself a favor, just pay your dues - especially if you are an egomaniac celebrity! (Or any member of their money-hungry posse)

(Image courtesy of K Bar from TA, IL at Flickr)



Monday, December 14, 2015

Could Dutch Police Be Allowed To Hack Suspects Very Soon?

A new Dutch law proposed to the Dutch parliament would allow Dutch police to hack suspects (yes, even via WhatsApp!). Needless to say, it created a firestorm. Those opposing it consider the concept law to be a breach of privacy, while supporters applaud it as an important step towards security. The main question is: why is this new law necessary? And what does this Hack Law entail?

Funny enough, nobody really knows. Although the new Hack Law has been announced by the government, the Dutch House of Representatives still has to approve.

What is known, that the police should have extensive leeway to hack suspects as part of the broader picture to fight terrorism. Furthermore, the threshold for allowing police hacking should be low in order for it to be effective.

However, some academics, such as Professor Nico van Eijk, reason that hacking is not really an anti-terrorism measure. (Personally, I disagree).
De Dutch intelligence services AIVD and MIVD that are fighting terrorism, are already allowed to hack. Therefore, granting the same rights to the police would just be an extension of an existing and accepted practice.

It is not clear yet what the parameters for hacking by the police will be. Funny enough, the proposed concept is already two years old; the threshold for tapping into Internet and telephone traffic is therefore far from new.

Opponents of the concept law claim that the police could use security vulnerabilities in software on the devices of suspects. That might be true, but security vulnerabilities could also be used by hackers; just compare it to a faulty lock on your windows that allows crooks as well as the police to easily enter your premises.

Will the concept law pass? Quite likely, considering the recent attacks in Paris and Beirut.

This blog post was written by Debra De-Jong of Tip Top Lawyer