Issues with our tax services
Following the identification of these issues, we initiated a thorough review of the tax services to ensure that we uncovered other possible issues. In this review, we have identified a number of additional potential issues – seven of which involve potential customer detriment. The issues relate to potentially incorrect pay-outs to customers, including differences in dividend payments, potentially incorrect tax benefits applied, and potentially incorrect tax reclaims.
So far, the review indicates that the issues mainly affect customers who own foreign shares placed in a custody account in Denmark and who have been using our tax services in relation to double-taxation on foreign securities. So far, the review also indicates that the issues are primarily a result of the inability of our systems and manual controls to adequately process the increased complexity of the tax regulations in the various countries in which our tax services have been used.
Our current early estimate indicate that up to 6,000 customers may be affected by one or more of these additional issues.
We have stopped these issues and implemented short-term solutions to ensure that none of the significant issues will affect customers going forward. Our focus is now on getting the complete overview of impact on customers and ensure that all affected customers are compensated.