Karl Lagerfeld Is Under Investigation for Tax Evasion
Say it ain’t so, Karl.
First reported by the L’Express, it appears that fashion icon Karl Lagerfeld is being investigated for tax evasion. Authorities are claiming Chanel and Fendi’s creative director used offshore tax havens, such as Ireland, the British Virgin Islands and Delaware, to avoid paying millions of euros to the French government.
According to ABC News, Lagerfeld “had no wish to evade the law,” said Caroline Lebar, a spokeswoman for the designer. However she would not comment on the specific allegations in L’Express magazine, saying only that a tax procedure is under way.
The case does not concern Chanel or Fendi, but rather his 7L Parisian bookshop. It appears the bookstore doesn’t make any money, thus doesn’t pay taxes, however the allegations state Lagerfeld is funneling his photography revenue through the company to hid his earnings from the French government, earnings that are reported to be more than $20 million USD.
Lagerfeld isn’t the only designer to have his finances investigated in recent years. Italian designers Stefano Gabbana and Domenico Dolce of Dolce & Gabbana were cleared of tax evasion charges in 2014 after a lengthy courtroom battle.
