The Dutch Public Prosecution Service has fined Morgan Stanley €101 million for evading dividend tax in the Netherlands.
The American bank used a special arrangement to claim a refund of dividend tax, which prosecutors say it was not entitled to.
Morgan Stanley agreed to pay the fine following a criminal order issued by the prosecution service. This process allows penalties to be imposed without involving a court, thereby allowing the bank to avoid a trial.
Earlier this year, the prosecution service had announced plans to summon Morgan Stanley to court, alleging the bank had evaded €124 million in dividend tax.
Last year, Morgan Stanley reached a settlement with the Dutch tax authorities over the case. As part of the settlement, the bank repaid the disputed tax amount along with interest.
