Book a meeting
Insights

ESMA recommends tax information exchange

ESMA urges the European Commission to enable financial bodies to share data with tax authorities to tackle tax fraud effectively.

European Securities and Markets Authority (ESMA) recommends European Commission to allow national financial markets supervisory bodies to exchange information with tax authorities to combat fraudulent withholding tax schemes. On 24 September, 2020, ESMA published the outcomes of its review of the EU’s Market Abuse Regulation (MAR). While this review touches a wide variety of topics, it also addresses dividend arbitrage schemes in section 10.2. In this section, ESMA then explains multiple reasons why a legislative change to the MAR itself is not the best way to combat fraudulent dividend arbitrage schemes. However, as it is currently not allowed under MAR, MiFID II and MiFIR for national financial markets supervisory bodies (“National Competent Authorities” or “NCA’s”) to exchange information with tax authorities, ESMA recommends the European Commission to: · remove legal limitations for NCA’s to exchange information obtained from NCA’s in other Member States with tax authorities, as well as to · provide a common legal basis for exchange of information directly received by an NCA within its national supervisory activity. ESMA believes this may not prevent but will contribute to the detection and prosecutions of fraudulent withholding tax schemes.

Jeroen van der Wal

Founder and CEO

Topics

Unlock your 

withholding tax recovery potential

Get in touch and see for yourself how you can take control and optimize your withholding tax returns

Insights you might also like

JUNE 12, 2026 • 6 minute read

What Delegated Regulation (EU) 2026/110 Actually Says About FASTER's Reach

Delegated Regulation (EU) 2026/110 has resolved the critical open question in the FASTER Directive: which EU member states must operate under the new fast-track withholding tax framework, and which can stay outside it. The answer will define the operational landscape for institutional investors and custodians from 1 January 2030 onwards.

Tax news

JUNE 10, 2026 • 3 minute read

Dutch Dividend Withholding Tax Refund for Unit-Linked Insurers: Court of Appeal 's-Hertogenbosch

The Court of Appeal of 's-Hertogenbosch has ordered the Dutch tax authorities to refund approximately €53.8 million in dividend withholding tax to a UK-resident unit-linked insurer, ruling that EU free movement of capital principles override the domestic treatment that left the insurer bearing a 15% withholding tax that a comparable Dutch company would never have paid. The decision clarifies the beneficial ownership analysis for unit-linked structures and sets out the conditions under which foreign insurers can pursue similar refund claims.

Tax news

JUNE 10, 2026 • 4 minute read

Italy's 1.2% Dividend WHT Reclaim Window Is Closing for Non-Resident Investors

Italian courts have now confirmed that non-resident corporate investors can reclaim Italian dividend withholding tax where it exceeded the 1.2% effective burden available to comparable Italian companies. With the 48-month limitation period running, claims for 2022 dividends are expiring during 2026.

Tax news