AMSTERDAM (Reuters) -The Dutch Public Prosecutor (OM) has imposed a total fine of 101 million euros ($117.10 million) on two Morgan Stanley entities in London and Amsterdam for dividend tax evasion,
Dutch Prosecutor Fines Morgan Stanley €101M for Tax Evasion
AMSTERDAM (Reuters) -The Dutch Public Prosecutor (OM) has imposed a total fine of 101 million euros ($117.10 million) on two Morgan Stanley entities in London and Amsterdam for dividend tax evasion, it said on Thursday.
The penalty is separate from the tax liability Morgan Stanley settled with the Dutch Tax Administration at the end of 2024, including accrued interest, the OM added.
Under Dutch law, domestic shareholders can reclaim or offset dividend taxes, but foreign recipients usually cannot. According to OM, Morgan Stanley used a special structure that allowed parties who were not eligible to improperly claim these tax rebates.
Earlier this year, the OM said it would summon Morgan Stanley but just before the start of criminal proceedings, the financial services company agreed to accept the fine.
Morgan Stanley said it was "pleased to have resolved this historical matter", which concerned corporate tax returns filed in the Netherlands more than 12 years ago.
($1 = 0.8625 euros)
(Reporting by Toby Sterling, Writing by Charlotte Van Campenhout; Editing by Kirsten Donovan)
