Boaz Schwartz, the CEO of Deutsche Bank Israel, was arrested today over allegations of falsely reporting deals worth over NIS 550 million since 2011. The court has ordered his release on bail under certain restrictions.
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According to the Israeli Tax Authority, the investigation against the bank and its CEO was started due to suspicions regarding a number of offences. The companies that the CEO exclusively managed, Deutsche Securities Israel and Deutsche Global Markets, allegedly falsely reported that their deals were on behalf of non-Israelis only and therefore tax free – however they also served Israeli residents and were required to pay taxes on them. The deals in question are said to be worth upwards of NIS 550 million (or about $147 million).
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The investigators further revealed that a search of the offices of Deutsche Bank Israel was carried out yesterday. A lot of evidence was gathered, including the seizure of the computers and mobile phones of company managers and top executives including department heads, which they say support and strengthen their suspicions.
Deutsche Bank issued this statement: “Deutsche Bank in Israel and abroad acts in accordance with the law and strict legal advice. We are cooperating with the tax authorities on this inquiry and will continue to do so.”