Deutsche Bank Israel managing director Boaz Schwartz was arrested today on suspicion of VAT offenses involving improper reporting of transactions amounting to over NIS 550 million. The Jerusalem Magistrates Court ordered his release on restrictive conditions.
The Jerusalem customs and VAT unit, in cooperation with the Tel Aviv purchase tax unit, is conducting an investigation of Deutsche Bank Israel, whose reports are consolidated with those of Deutsche Securities Israel and Deutsche Global Markets, and of the company's CEO, who is suspected of a series of violations of the Value Added Tax Law.
As noted in the request for Schwartz's release under restrictive conditions, the companies reported to the VAT authorities on VAT-exempt transactions in respect of services supposedly provided exclusively to foreign residents, while the companies also provided service to Israeli residents in Israel, with whom transactions are subject to the full rate of VAT. These transactions totaled over NIS 550 million over the past six years.
A search of the company offices was conducted yesterday. Many materials, computer, and mobile telephones belonging to senior managers and executives were seized.
Deutsche Bank Israel commented as follows: "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."
Published by Globes [online], Israel Business News - www.globes-online.com - on February 7, 2017
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