The head of Deutsche Bank Israel was arrested Tuesday on suspicion of tax evasion amounting to tens of millions of shekels.

Boaz Schwartz was detained on suspicion of hiding transactions worth NIS 550 million ($150 million) over the past six years to avoid taxes on the money.

The Jerusalem Magistrate’s Court later released Schwartz on bail of NIS 1 million ($265,000).

The Tax Authority accused Deutsche Bank Israel, under Schwartz’s sole management, of reporting 0 percent sales tax for clients as if they were based overseas, when in fact they were Israel-based and therefore required to pay the tax. The estimated unpaid taxes amount to some NIS 80 million ($21 million).

The company’s offices were searched Monday by police, who confiscated materials, computers and cellphones of managers and executives.

The investigation was launched following allegations of “violations of tax law, including false transaction reporting, significant deviation in record keeping that does not reflect the intrinsic activities of the companies, giving false reports and financial records, and using fraud and deception with intent to evade taxes.”

Deutsche Bank Israel responded to the arrest saying that “Deutsche Bank in Israel and globally operates according to law and in accordance with strict legal advice.” It added that “we are fully cooperating with the tax authorities in the current investigation and will continue to do so as long as necessary.”