Morgan Stanley agreed to pay a €101 million fine to Dutch prosecutors as part of a plea agreement for a dividend‑tax evasion scheme. The announcement was made on November 27 2025 and the fine is in addition to a prior settlement of €124 million in tax liability and interest that the firm paid to the Dutch Tax Administration at the end of 2024.
The scheme operated between 2007 and 2013. During that period Morgan Stanley’s Dutch subsidiary temporarily acquired shares in Dutch companies around dividend dates to offset dividend tax against other liabilities. After the dividend payout, the shares were transferred to foreign parties not entitled to Dutch tax benefits, allowing the bank to avoid withholding tax on roughly €124 million of dividends.
The fine was imposed on two Morgan Stanley entities – one in London and one in Amsterdam – and covers approximately €830 million in dividends. The penalty is close to the statutory maximum for such violations and was secured through a plea agreement that allowed the Public Prosecution Service to impose the penalty without a trial.
Morgan Stanley’s spokesperson said the bank is "pleased to have resolved this historical matter," emphasizing that the issue concerns corporate tax returns filed more than a decade ago and should not affect current operations. The company also noted that it had previously rejected the allegations before the settlement.
The fine is part of a broader European enforcement effort targeting dividend arbitrage schemes, including Cum‑Ex and Cum‑Cum transactions. ABN Amro, which facilitated aspects of the structure, paid a €14 million fine in a related case. The regulatory action underscores ongoing scrutiny of tax compliance practices in the region and signals that legacy tax structures can still trigger significant penalties.
While the €101 million fine adds to Morgan Stanley’s financial obligations, the prior settlement of the tax liability and interest already paid in 2024 mitigates the immediate cash impact. The resolution removes a lingering legal overhang and limits the risk of additional penalties, providing clarity for investors and stakeholders.
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