Morgan Stanley Denies Dutch Tax Evasion Allegations Involving €124 Million

Morgan Stanley is facing allegations from the Dutch Public Prosecution Service concerning tax evasion related to dividends on Dutch shares between 2009 and 2013. The prosecutor claims that an Amsterdam-based subsidiary of Morgan Stanley unlawfully offset €124 million in withholding tax against €825 million in dividends, and holds the European parent company and an employee responsible. Morgan Stanley has strongly denied these allegations, stating it will vigorously contest the charges and criticizing the investigation as incomplete and based on unclear tax legislation. The bank emphasized its full cooperation with authorities while rejecting the claims as unfounded. These allegations have also had a tangible impact on Morgan Stanley’s stock price, which declined by about 1.1% following the news. Morgan Stanley has maintained a presence in Amsterdam since 1997 and continues to offer a full range of banking services in the Netherlands.