At FinancialMediaGuide, we note that in early December 2025, the Dutch prosecution imposed a €101 million fine (€117.1 million USD) on Morgan Stanley’s divisions in London and Amsterdam. This fine resulted from a years-long investigation that uncovered a dividend tax evasion scheme, where the company illegally utilized tax deductions intended for local shareholders but accessible to foreign investors. While many companies face similar risks, this case raises important questions about the tax responsibility of multinational corporations and how tax authorities collaborate with global financial entities.
According to the prosecution’s statement, the scheme allowing foreign shareholders to claim tax deductions that should only have been available to Dutch residents lasted for several years – from 2010 to 2012. Although the company settled its tax obligations with the Dutch Tax Administration in 2024, the fine was imposed solely due to the illegal tax deductions obtained during this period. In this context, it is important to note that tax authorities are committed to ensuring transparency and accountability at all levels, regardless of the age of the violation.
At FinancialMediaGuide, we emphasize that this case is not only significant for Morgan Stanley itself but also for other large corporations operating across various jurisdictions. As demonstrated by Morgan Stanley’s example, the use of aggressive tax schemes can lead to serious consequences, even when the company is willing to settle with tax authorities. This highlights the importance of adhering to both local and international tax regulations, which is becoming a key element of large corporations’ financial strategies.
This situation also raises questions about the effectiveness of international cooperation between tax authorities in combating tax evasion. The Common Reporting Standard (CRS) information exchange program is actively used to increase transparency in financial transactions and ensure that taxes are paid in full. At FinancialMediaGuide, we believe that enhanced monitoring and oversight of multinational corporations’ activities are becoming increasingly important, and schemes like the one used by Morgan Stanley will be detected much more quickly in the future.
For large corporations operating in international markets, this is not only a matter of tax compliance but also strategic responsibility. As international tax standards become stricter, companies must consider the potential reputational and financial risks associated with violations. Moreover, the current situation clearly demonstrates the importance of implementing internal control systems capable of effectively tracking potential violations and minimizing financial risks.
At FinancialMediaGuide, we see this incident as a signal for other large companies. Increased accountability and transparency are critical factors that will influence the financial stability of corporations. It is unlikely that tax authorities will loosen their requirements or cease monitoring multinational corporations – in fact, control will only intensify.
We predict that in the coming years, there will be an increase in cases where large financial institutions face stricter sanctions for tax violations. Such actions, as in the case of Morgan Stanley, may become more widespread as tax authorities worldwide enhance their coordination and actively fight against tax schemes that violate international regulations.
For large corporations, this case emphasizes the need to integrate more stringent tax compliance procedures and improve interactions with local tax authorities. At Financial Media Guide, we foresee that corporate tax strategies in the future will become increasingly transparent, and companies failing to comply with tax norms will face not only fines but also reputational risks.
Thus, companies operating in international markets should reconsider their approaches to tax reporting, strengthen internal audits, and be prepared to engage with tax authorities at various levels. In a globalized tax system, such measures will become the foundation for effective operations in the future.
