Israel’s Tax Authority said on Tuesday that the chief executive of Deutsche Bank’s (DBKGn.DE) local subsidiary has been arrested and released on bail over allegations that it mis-reported transactions worth more than 550 million shekels ($147 million).

The authority said in a statement it has been investigating Deutsche Bank Israel and its CEO, Boaz Schwartz, over a number of alleged offences.

The tax authority said Deutsche Bank Israel had been reporting as if it were carrying out deals only for non-Israeli residents, which benefit from a zero tax rate, when it also provided services for Israelis, which require full tax payments.

Those deals, it said, were worth more than 550 million shekels over the past six years.

“Deutsche Bank in Israel and abroad acts in accordance with the law and strict legal advice,” Deutsche Bank said in a statement. “We are cooperating with the tax authorities on this inquiry and will continue to do so,” it added.

source: reuters