Karl Lagerfeld— one of fashion’s most lauded designers—is currently suspected of hiding more than €20 million (approx. $21.8 million) from the French tax authorities. On Wednesday, the French publication L'Express reported that for the past six years, the couturier has been withholding earnings on a number of side projects including his freelance photography work and his hotel and residence collaborations. Allegedly funds have been funneling through the 7L Parisian bookshop he opened back in 1999 and circulating through companies in the US, Ireland, France, the UK and the British Virgin Islands.
His earnings as creative director of Chanel and Fendi have not been called into question and currently it seems Lagerfeld’s accountants, lawyers and financial advisors are in “open discussion” with French authorities. They’re also checking several investment properties the designer has owned over the years as well as a tax adjustment he received in the ‘90s. A spokeswoman for the designer said he has “no intention of evading the law” and trusts that the situation will be resolved.
Lagerfeld isn’t the only designer to be accused of tax fraud. Dolce & Gabbana’s Stefano Gabbana and Domenico Dolce had a very public and lengthy courtroom battle back in 2013. In 2014, Prada designer Miuccia Prada and her husband Patrizio Bertelli were also accused of tax evasion.
