The $123B Healthcare of Ontario Pension Plan (HOOPP), one of Canada’s largest pension funds, has been summoned by Dutch prosecutors over allegations that it improperly claimed more than €200M in dividend withholding tax refunds on Dutch shares purchased between 2013 and 2018.
According to a statement published on HOOPP’s website, the pension fund believes the matter should be adjudicated by a tax court rather than through criminal proceedings. “HOOPP is surprised and disappointed by this decision and will vigorously defend itself against these allegations,” it stated.
The pension fund noted it has been cooperating with the Dutch Tax Authority for several years in relation to the matter. The summons, issued by the Netherlands Public Prosecution Service, stems from a broader investigation into dividend tax refund practices involving multiple international investors. While Dutch prosecutors allege potential tax evasion, HOOPP maintains that all refund claims were legitimate and compliant with applicable laws.
“HOOPP is confident that it was the beneficial owner of the shares and therefore entitled to the tax refunds,” it said. “These allegations will have no impact on HOOPP’s ability to pay pensions to our members today or in the future.”
The case has emerged amid ongoing European efforts to recover funds linked to controversial dividend arbitrage strategies such as cum-ex and cum-cum trades. Earlier this month, Danish authorities lost a major case in a London court related to similar allegations, part of a wider effort to recover roughly $1.9B (kr12B) in alleged tax losses across jurisdictions, including the U.K., U.S., and the Netherlands.
