Daily Tax Report: International

Morgan Stanley May Owe $42 Million in Dutch Dividend Tax Case

May 14, 2020, 3:18 PM

Morgan Stanley may owe as much as 42 million euros ($45 million) to the Netherlands in a tax-avoidance case related to dividend payouts.

The Dutch tax authority said Morgan Stanley that engaged in “dividend stripping,” a controversial practice where a shareholder uses a series of trades to lower its tax bill. While the claim was thrown out two years ago, the Amsterdam Court of Appeal overturned that decision in a ruling this week.

Countries across Europe are cracking down on various forms of trading schemes that target anomalies in the withholding taxes that governments levy on payments to shareholders. The...

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