Karl Lagerfeld might be in some serious trouble.
According to an article published by L’Express, the 82-year-old fashion designer is reportedly being investigated for tax evasion. The story claims that French authorities are accusing Lagerfeld of hiding more than $21.5 million in earnings during the past six years, using tax havens like Ireland, the British Virgin Islands, and Delaware to circulate his cash through.
The investigation is reportedly focusing on Lagerfeld’s 7L Parisian bookshop. The Associated Press wrote that the establishment “houses a photo studio owned by a British-based company, which takes in the revenue from Lagerfeld's photography work. The bookstore loses money and thus does not pay taxes.” However, it seems the government isn’t buying it.
According to L'Express, tax authorities suspect that foreign transactions allowed the Chanel and Fendi creative director to hide his earnings as a photographer. Investigators are also looking into a couple property investment companies and a tax adjustment Lagerfeld received in the ‘90s.
At this time, French authorities and Lagerfeld’s spokesperson have declined to comment. Stay tuned as this story unfolds.