TAX ALLEGATIONS Deutsche Bank Executive Detained in Israel

Boaz Schwartz, head of the German bank’s Israel unit, has been released on bail after being detained over allegations of tax fraud.
Deutsche Bank is being accused of committing tax violations in Israel.

Israeli authorities have accused Deutsche Bank of committing tax violations on transactions worth nearly €140 million ($149 million), in the latest legal scandal to engulf Germany’s largest financial institution.

Boaz Schwartz, the head of Deutsche’s Israel, was detained on Tuesday in connection with the allegations but was later released on bail.

Deutsche Bank declined to provide details. A spokeswoman told Reuters that the bank adheres to the law and is cooperating with Israeli authorities.

According to Israeli tax authorities, Deutsche Bank allegedly carried out transactions for Israeli customers who posed as foreigners, enabling them to avoid tax obligations.

Deutsche Bank has been dogged by repeated legal controversies in recent years. In December, Germany's largest financial institution agreed to pay the U.S. Justice Department $7.2 billion for trading toxic mortgage-backed securities in the run-up to the 2008 financial crisis.

In January, Deutsche reached a joint settlement of $630 million with British and U.S. authorities over allegations that it helped Russian clients illegally move money across international borders.

Spencer Kimball is an editor with Handelsblatt Global. To contact the author: [email protected]