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Morgan Stanley Pays $101M for Dutch Tax Evasion
28 Nov
Summary
- Morgan Stanley paid $101 million to Dutch prosecutors.
- The fine resolves allegations of dividend tax evasion between 2009-2013.
- The bank's Dutch subsidiary improperly claimed tax refunds.
Morgan Stanley has agreed to pay a $101 million fine to Dutch prosecutors, resolving a case concerning dividend tax evasion. The financial group's Dutch subsidiary was accused of a scheme involving the temporary acquisition of shares around dividend distribution dates to offset taxes. This strategy allegedly allowed the bank to evade $124 million in dividend tax between 2009 and 2013.
The Public Prosecution Service contended that only Dutch-based organizations could offset this tax, and in Morgan Stanley's case, the dividends ultimately benefited foreign institutions. As part of a plea agreement, Morgan Stanley will pay the penalty without judicial proceedings, thus avoiding a trial. The bank had previously disputed the prosecutors' characterization of the situation.
In 2024, Morgan Stanley reached a settlement with the Dutch tax authority, Belastingdienst, repaying the contested tax amount with interest. The bank expressed satisfaction that this over-twelve-year-old case has been resolved. Separately, Morgan Stanley recently signed an agreement to acquire EquityZen, a private share transaction platform.
