AFP / Dani Pozo 
 
 Bar Refaeli was forced to hand over her passport and is not allowed to leave Israel without permission for 180 days 
 
 Israel's most famous model Bar Refaeli was arrested and questioned for allegedly evading taxes on millions of dollars of income from abroad by lying about her residency, Israeli authorities said Thursday. 
 
 Refaeli is also suspected of receiving benefits of "over a million shekels" ($257,000, 237,000 euros) in the form of free accommodation in luxury apartments and cars she did not report, Israel's Tax Authority said in a statement. 
 
 Refaeli's mother Zipora was also arrested, with the Tax Authority estimating the unreported income from abroad at "dozens of millions of shekels". 
 
 Israeli citizens who are not residents are exempted from reporting to tax authorities on income from outside the country. 
 
 The Tax Authority alleges Refaeli and her mother created the false appearance of the top model residing outside of Israel in order to avoid paying the full extent of taxes. 
 
 It said she has lived in luxury apartments registered under her mother and brother's names. 
 
 Refaeli was also supplied a free Range Rover and Lexus for her use in return for her being photographed in the cars, without the vehicles being registered under her name. 
 
 An undercover investigation revealed a contract between Refaeli and the management of a luxury complex in Tel Aviv, according to which gossip columns would receive "leaks" regarding her residency there to promote it, the authority alleged. 
 
 Refaeli and her mother are also suspected of receiving "celebrity discounts" which should have been reported as income, such as on the interior design of Refaeli's apartment and when Zipora bought an apartment. 
 
 An undercover investigation culminated in a raid on Refaeli and her mother's home on Wednesday, and on Thursday a Tel Aviv court ordered their arrest and release on bail. 
 
 Both were forced to deposit their passports and are not allowed to leave Israel without permission for 180 days. 
 
 There was no immediate comment from Refaeli's lawyers. 
 
 This is not the first time the 30-year-old swimsuit model, who in the past dated actor Leonardo DiCaprio, allegedly found loopholes in Israeli law to her benefit. 
 
 She had in the past stirred controversy when she evaded her two years of mandatory military service by marrying a friend of her father's, only to divorce him a short while later. 
 
 In September, she married Israeli businessman Adi Ezra. 

 Image copyright AP Image caption Bar Refaeli married the Israeli billionaire, Adi Ezra, in September 
 
 The Israeli supermodel, Bar Refaeli, is being investigated for suspected tax evasion in Israel. 
 
 Ms Refaeli is accused of failing to report millions of dollars in income earned abroad and tens of thousands of dollars in "celebrity benefits". 
 
 On Thursday, a court agreed to release her on $193,000 (£129,000) bail. 
 
 Ms Refaeli, who denies committing any offence, must also seek the permission of the authorities if she wishes to leave Israel and pay a $64,000 bond. 
 
 The 30-year-old has hosted Israeli X Factor and modelled for brands including Gap, Desigual and Escada. 
 
 She married the Israeli billionaire, Adi Ezra, in September. She had previously dated Hollywood actor Leonardo DiCaprio. 
 
 'No drama' 
 
 Ms Refaeli spent several hours being questioned at the Tel Aviv offices of the Israel Tax Authority on Wednesday, according to Israeli media reports. 
 
 On Thursday, an official gag order was lifted and the tax authority confirmed that she and her mother, Tzipi, were being investigated. 
 
 It alleged the supermodel tried to hide the fact that she was a resident of Israel by living in apartments in Tel Aviv registered in her mother and brother's names. 
 
 Israelis who are not residents are exempted from declaring income earned abroad. 
 
 The tax authority also accused Bar Refaeli of failing to report discounts on luxury goods and other benefits that should have been subject to income tax. These included free use of Range Rover and Lexus cars not registered in her name that were provided by companies in exchange for publicity photographs, it said. 
 
 Ms Refaeli's lawyer rejected the allegations. 
 
 "There is no drama. In the end, this is just a civil dispute. No-one cheated anyone else. It will all clear up soon," Giora Aderet told the NRG news website.
– Bar Refaeli, Israeli supermodel, draft-dodger, and ex-galpal of Leonardo DiCaprio, has been arrested for alleged tax evasion, AFP reports. Israeli authorities say Refaeli lied about her residency in order to skirt taxes on millions in income from abroad; she's also suspected of failing to report benefits (like free luxury accommodations and cars) worth $257,000. Refaeli's mother was also arrested on suspicion of evading taxes. The arrests came about during a raid Wednesday after an undercover investigation; Refaeli and her mother were released on bail Thursday. As AFP explains, Israeli citizens don't need to report income from outside the country if they are not residents of Israel, and the Tax Authority is accusing Refaeli and her mother of making it appear as if the model did not live in Israel for that reason. Refaeli is suspected of living in apartments registered under the names of her mom and her brother. She also allegedly drove a Range Rover and a Lexus for free, without registering them in her name, in return for allowing herself to be photographed in them, and she and her mother are suspected of failing to report "celebrity discounts" they've received as income. Refaeli denies the allegations, the BBC reports, and her lawyer says "there is no drama" and "it will all clear up soon."