Morgan Stanley said to contest Dutch tax evasion probe

Morgan Stanley (NYSE:MS) on Wednesday said it will dispute a public prosecutor’s investigation into alleged tax evasion related to dividends on its Dutch shares, according to a media report.

Reuters reported that the Dutch public prosecution service said it would subpoena a foreign bank suspected of tax evasion. Between 2009 and 2013, a subsidiary of a foreign bank based in Amsterdam submitted five corporate tax returns in which EUR 124M (US$140M) in withholding tax was offset, related to EUR 825M in dividends that were listed on Dutch-listed shares.

The prosecutor’s statement didn’t name the foreign bank being investigated, but a person close to the investigation told Reuters that the probe involves Morgan Stanley (NYSE:MS).

“Morgan Stanley rejects the Prosecutor’s allegations about this complex, decade-old matter, and intends to contest them vigorously,” the bank said to Reuters. The bank said it provided full cooperation in the matter.

“The Prosecutor is basing this decision on an incomplete investigation and record, in violation of established process,” the firm added.

Morgan Stanley (NYSE:MS) stock fell 1.1% in late Wednesday trading.