Morgan Stanley Challenges Dutch Tax Evasion Probe

Morgan Stanley announced on Wednesday its intention to challenge a Dutch public prosecutor's allegations of tax evasion related to dividends on shares listed in the Netherlands. The prosecutor's office has accused a foreign bank of unlawfully offsetting withholding tax on corporate returns.

The investigation focuses on activities between 2009 and 2013, where a subsidiary based in Amsterdam allegedly offset 124 million euros in withholding tax against 825 million euros in dividends. While the prosecutor did not explicitly name the bank, a source close to the case identified Morgan Stanley as the entity under investigation.

Morgan Stanley's spokesperson asserted the bank's compliance with the probe and criticized the prosecutor's decision, arguing it stems from an incomplete investigation and unclear tax legislation. The bank, which has been operating in Amsterdam since 1997, strongly rejects the claims and plans to contest them.

(With inputs from agencies.)