Delays in our tax services

During spring 2020, we identified that processes related to two of the tax services offered to some of our custody account customers have been insufficient.

One issue relates to delays in paying dividend tax repayments on some US securities to customers in the period from 2015 to 2019. It affects around 2,200 of our customers across the Nordic countries and Luxembourg, the vast majority in Denmark. The second issue relates to delays in our tax reclaim service, affecting up to 3,300 of our customers, mainly customers holding a custody account in Denmark.

We have updated our processes to prevent such issues from reoccurring and set up a task force to address the backlog of outstanding reclaims.

Customers affected and information to them

Up to 5,500 customers have experienced delays in our handling of dividend tax on their behalf as part of our tax services. All customers will receive the refunds and repayments of dividend tax to which they are entitled. 

Numbers below updated 1 February 2021


Delays in tax repayments for US securities


Around 2,200 customers estimated to be affected

Around 2,200 customers informed about potentially being affected



Delays in tax reclaim services


Up to 3,300 customers estimated to be affected

171 customers received expired tax reclaims

Timeline

  • Jan. 2021 – Potentially affected customers with US securities begin to receive information

    In January 2021, we begin to inform customers who may not have received the dividend tax repayments on US securities to which they are entitled.

  • Aug. 2020 – Review of customer cases begins

    In August 2020, we begin identifying which customers who have not received the dividend tax repayments on US securities to which they are entitled. Also in August 2020, we begin processing the backlog of outstanding reclaims.

  • Spring 2020 – The issue is identified and an internal review is initiated

    As part of a review of the operating model in our Tax Services unit, we identify issues with our processes for dividend tax reclaims as well as dividend tax repayments from the US tax authorities. We update our processes to prevent such issues from reoccurring.

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