French Government Conducts Investigations On Chanel's Creative Director Karl Lagerfeld For Alleged Tax Evasion Scandal
French authorities are currently investigating Chanel's creative director and designer Karl Lagerfeld for alleged tax evasion. The New York Times wrote Friday that Lagerfeld reportedly used "offshore tax havens" to hide as much $21.7 million from the French government.
The 80-year-old fashion icon reportedly used complex transactions with several companies in Ireland, the United States and the British Virgin Islands to hide amount, Fashion Times noted.
Lagerfeld is a German-born designer based in Paris.He administers the Chanel fashion house as the brand's chief designer. He is also the fashion director of the Italian-based fashion label Fendi. Although he oversees both high-fashion companies, there has been no reports of their involvement in the scandal.
Lagerfeld's spokesperson, Caroline Lebar, said Karl has no intention of violating French laws and that he trusted his financial advisers to deal with the situation with France's tax authorities. Lebar added that Lagerfeld is not allowed to discuss the tax procedures while the investigation is still pending. Moreover, she also declined to comment on the specific allegations against Lagerfeld.
Karl Lagerfeld is latest in the fashion industry to face tax evasion charges. Similarly, Domenico Dolce and Stefano Gabanna were previously accused of tax evasion by the Italian government. Both designers faced a 10-year legal dispute over unpaid income tax until they reached a settlement in October 2014. That same year, Prada's chief executives Patrizio Bertelli and Miuccia Prada were also embroiled in a tax evasion scandal.
Meanwhile, CBS News reported Thursday that Lagerfeld and Chanel are already preparing for the upcoming 2016 Spring/Summer Haute Couture Shows in Paris.
