Latest news with #DutchPublicProsecutionService
Arabian Post
4 days ago
- Business
- Arabian Post
Morgan Stanley Rejects Dutch Tax Evasion Claims
Morgan Stanley has firmly denied accusations from the Dutch Public Prosecution Service alleging the financial giant evaded tax on dividends worth nearly $1 billion more than ten years ago. The dispute centres on complex tax structures employed by the bank that Dutch authorities contend were designed to avoid paying the appropriate tax on substantial dividend income. Dutch prosecutors assert that the investment bank engaged in schemes dating back to the early 2010s to shelter dividend earnings from taxation in the Netherlands. The case focuses on transactions routed through multiple subsidiaries in various jurisdictions, including the Netherlands and Luxembourg, which allegedly facilitated aggressive tax avoidance. Authorities argue this deprived the Dutch treasury of hundreds of millions in revenue. However, Morgan Stanley insists all tax planning adhered strictly to local laws and international tax treaties, and that any dividends received were correctly reported and taxed in compliance with regulations. The bank's legal team describes the allegations as unfounded, emphasising that the dividend structures in question were part of legitimate financial arrangements utilised widely in the industry during the period under review. Morgan Stanley highlights that similar structures have been scrutinised by tax authorities across Europe, often resulting in disputes but also numerous rulings affirming their legality when applied transparently and within the framework of existing laws. ADVERTISEMENT This case emerges amid growing scrutiny by European tax authorities over multinational corporations' use of intricate financial arrangements to minimise tax liabilities. Governments across the continent have intensified efforts to clamp down on perceived tax avoidance schemes, adopting stricter regulations and seeking to recover revenues from earlier years. The Dutch Public Prosecution Service has increasingly targeted financial institutions and large companies suspected of employing aggressive tax strategies, making Morgan Stanley's situation part of a broader enforcement trend. At the heart of the dispute is the interpretation of Dutch tax rules governing dividend withholding taxes and the application of international treaties intended to prevent double taxation. Prosecutors allege that Morgan Stanley's structures artificially reduced withholding tax obligations by exploiting mismatches between different countries' tax systems. The bank, however, argues these mechanisms reflected legitimate treaty benefits designed to avoid taxing the same income multiple times across borders, a standard practice in international finance. Legal experts point out that cases involving alleged tax evasion or avoidance by multinational banks are often complex, hinging on fine distinctions between lawful tax planning and illicit evasion. Courts must consider whether transactions have genuine economic substance or serve primarily to obtain tax advantages without corresponding business purpose. Morgan Stanley's defence underscores the presence of legitimate business rationale behind the dividend arrangements, including the efficient management of capital and investor returns, which challenges the prosecutors' claims. The proceedings have attracted attention from industry observers and tax specialists who note that the outcome could influence future tax enforcement strategies. Given the substantial sums involved and the prominence of the parties, the case is likely to set a precedent in how tax authorities tackle dividend-related tax disputes in the financial sector. The situation also reflects ongoing tensions between governments' efforts to secure tax revenues and corporations' rights to structure their affairs in tax-efficient ways under the law. Morgan Stanley operates as one of the world's leading investment banks, with extensive international operations that often necessitate complex financial and tax arrangements. The institution maintains a strong commitment to compliance and corporate governance, asserting that its policies meet or exceed regulatory standards globally. The bank's response to the allegations emphasises transparency and cooperation with tax authorities to resolve the matter through legal channels. ADVERTISEMENT While the Dutch case targets transactions from over a decade ago, it resonates with broader global trends in tax regulation. Countries are increasingly collaborating to close loopholes and enforce tax transparency, supported by initiatives such as the OECD's Base Erosion and Profit Shifting project and the implementation of stricter reporting requirements. This evolving landscape poses challenges for multinational corporations that must navigate a patchwork of national laws and international agreements. Morgan Stanley's legal defence highlights that the dividend payments at issue were subjected to appropriate taxation in other jurisdictions, thus complicating claims of outright evasion. The bank notes that the complexity of cross-border tax rules often leads to differing interpretations between taxpayers and authorities, which can only be resolved through judicial or administrative review. The institution remains confident that the facts will support its position once all evidence is thoroughly examined. The Dutch Public Prosecution Service, which spearheaded the investigation, has intensified its approach towards large-scale tax cases, signalling a willingness to pursue aggressive enforcement to deter corporate tax avoidance. The allegations against Morgan Stanley form part of a series of cases targeting financial institutions that allegedly structured their operations to reduce tax bills. Authorities have emphasised that pursuing these cases is essential to uphold the integrity of the tax system and ensure a level playing field for all taxpayers. Morgan Stanley's challenge to the allegations includes detailed legal arguments about the interpretation of tax treaties and domestic tax laws. The bank contends that it fully complied with disclosure and reporting obligations and that any tax benefits received were legitimate under existing rules. The defence also points to rulings from tax courts in other countries that have upheld similar structures, suggesting a degree of legal uncertainty that complicates prosecutors' claims. The case is expected to proceed through the Dutch judicial system, with possible appeals and negotiations that could extend over several years. The financial sector closely watches developments, recognising the case's implications for tax risk management and compliance strategies. Morgan Stanley's insistence on its innocence highlights the broader debate around the balance between tax optimisation and the boundaries of lawful conduct.
Bloomberg
4 days ago
- Business
- Bloomberg
Morgan Stanley Denies Dutch Prosecutor's Tax Evasion Allegations
Morgan Stanley denied allegations by the Dutch Public Prosecution Service that it evaded tax on almost $1 billion worth of dividends more than a decade ago. According to the Dutch Public Prosecution Service, an Amsterdam-based subsidiary of a foreign bank filed five corporation tax returns between 2009 and 2013. The returns offset €124 million ($140 million) in tax relating to a total of €825 million in dividends paid on listed Dutch shares, the public prosecution service said in a statement Wednesday without identifying the bank. The prosecutor holds the European parent company and an employee involved at the time responsible.
Yahoo
5 days ago
- Business
- Yahoo
Morgan Stanley says it will contest Dutch dividend tax evasion probe
THE HAGUE (Reuters) -Morgan Stanley said on Wednesday it will contest a Dutch public prosecutor's investigation into tax evasion related to dividends on Dutch shares. The Dutch public prosecution service said on Wednesday it would subpoena a foreign bank on suspicion of dividend tax evasion. It said that between 2009 and 2013, a subsidiary of a foreign bank based in Amsterdam submitted five corporate tax returns in which a total of 124 million euros in withholding tax was offset, related to 825 million euros in dividends that were distributed on Dutch listed shares. "Following an is suspicion that the subsidiary has unlawfully offset the withholding tax and is therefore suspected of tax evasion," the Dutch Public Prosecution Service said, adding it was also holding the European parent company responsible. The prosecutor did not specify the foreign bank being investigated, but a source close to the investigation said the probe concerns Morgan Stanley. Asked about the report, a spokesperson for Morgan Stanley said the bank was aware of the probe and would defend its case. "Morgan Stanley rejects the Prosecutor's allegations about this complex, decade-old matter and intends to contest them vigorously," the bank said. "Despite our full cooperation and the lack of clarity in the relevant tax legislation, the Prosecutor is basing this decision on an incomplete investigation and record, in violation of established process." Morgan Stanley offers a full range of banking services in the Netherlands since the opening of its Amsterdam office in 1997. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Morgan Stanley says it will contest Dutch dividend tax evasion probe
THE HAGUE (Reuters) -Morgan Stanley said on Wednesday it will contest a Dutch public prosecutor's investigation into tax evasion related to dividends on Dutch shares. The Dutch public prosecution service said on Wednesday it would subpoena a foreign bank on suspicion of dividend tax evasion. It said that between 2009 and 2013, a subsidiary of a foreign bank based in Amsterdam submitted five corporate tax returns in which a total of 124 million euros in withholding tax was offset, related to 825 million euros in dividends that were distributed on Dutch listed shares. "Following an is suspicion that the subsidiary has unlawfully offset the withholding tax and is therefore suspected of tax evasion," the Dutch Public Prosecution Service said, adding it was also holding the European parent company responsible. The prosecutor did not specify the foreign bank being investigated, but a source close to the investigation said the probe concerns Morgan Stanley. Asked about the report, a spokesperson for Morgan Stanley said the bank was aware of the probe and would defend its case. "Morgan Stanley rejects the Prosecutor's allegations about this complex, decade-old matter and intends to contest them vigorously," the bank said. "Despite our full cooperation and the lack of clarity in the relevant tax legislation, the Prosecutor is basing this decision on an incomplete investigation and record, in violation of established process." Morgan Stanley offers a full range of banking services in the Netherlands since the opening of its Amsterdam office in 1997. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-04-2025
- Yahoo
Man detained in Caribbean for famed crime reporter's 2021 murder
Dutch prosecutors said Monday authorities on the Caribbean island of Curacao have detained a man "who played a leading role" in the high-profile murder of crime reporter Peter R. de Vries four years ago. De Vries was gunned down in broad daylight on a busy Amsterdam street in July 2021, sparking an outpouring of grief and concern over the influence of organized crime in the Netherlands. "The 39-year-old man was detained on Monday in Willemstad on Curacao," the Dutch Public Prosecution Service said. "The man is suspected of playing a leading role in a criminal organisation that aimed to commit violence and which was behind the murder of De Vries, among other things," prosecutors said in a statement. A Dutch court last year handed down lengthy jail sentences to three of the main suspects in the murder, sentencing the organizer of the hit to 30 years, while two other men received 28 years. Three other men received sentences of between 10 to 14 years for complicity in the murder. The latest suspect, born in Curacao but who had Dutch nationality, has been behind bars on the island since 2014. "Detectives continued their investigation into those who ordered the hit on De Vries," the prosecution service said. "The man emerged as a suspect during the course of the investigation into the higher echelons of the criminal organization," it said. The man will be transferred to the Netherlands soon where he will appear before a judge, prosecutors added. De Vries, who reportedly had the phrase "On bended knee is no way to be free" tattooed on his calf, made his name as a crime journalist who reported on and wrote a bestselling book about the 1983 kidnapping of beer magnate Freddy Heineken. Later in his career he campaigned tirelessly to resolve cold cases. De Vries also won an Emmy in 2008 for his coverage of the disappearance of Alabama teen Natalee Holloway in Aruba. The celebrity journalist then moved into television, where he ran his own crime program called "Peter R. de Vries, Crime Reporter." Prosecutors believed the hit to be linked to De Vries's role as advisor to a witness against drug kingpin Ridouan Taghi. But the court last year's judgement ruled that since Taghi was not part of the trial, a definite link could not be established between that case, known as Marengo, and the De Vries murder trial. De Vries however revealed in 2019 that authorities had informed him he was on a hit-list drawn up by Taghi, who in February last year received a life sentence over a series of murders committed by his gang. During the 2022 trial for two of the suspects, close-circuit television images showed de Vries being shot. The court saw images at a distance of de Vries crossing the street, a figure running behind him and then the moment when the journalist was shot and fell to the ground. De Vries' daughter Kelly asked to leave the courtroom as the footage was shown. The Associated Press contributed to this report. Savannah Bananas pack stadiums with their zany twist on baseball | 60 Minutes American retirees expand their world overseas Watch: Blue Origin's first all-women flight crew launches to space
