Deutsche Bank’s CEO in Israel, Boaz Schwartz, was arrested on tax evasion charges on Tuesday, The Times of Israel reports.
He was bailed out later in the day.
Schwartz allegedly used a tax loophole for foreign residents, which exempts them from a 17% VAT charge, for Israeli clients. He is this accused of misreporting €136 million (550 million shekels).
Israeli tax authorities raided Deutsche offices in Israel, seizing laptops and mobile phones. Several senior executives were interviewed. Tax authorities hold Boaz Schwartz personally responsible.
Deutsche issued a statement denying every allegation, suggesting the bank is operating “in accordance with the law and strict legal advice.”