Belgian Government Is Latest Government to Bring Cum-Ex Dividend Tax Case in the U.S.

On July 27, 2021, the Federal Public Service Finance of Belgium (FPSF Belgium) brought seven lawsuits in the United States District Court for the Southern District of New York against pension plans, a trust, FGC Securities and FGC Holdings, Delaware limited liability companies, and individuals living in the United States who are allegedly associated with the pension plans.[1]  This article discusses, in particular, the suit against Lion Advisory Inc. Pension Plan, although the suits are almost identical in terms of the fact patterns and legal theories.   Significantly, like the cases brought by the Danish Tax Authority, this case is brought in the Southern District of New York with hopes that it will overcome the common law revenue rule, which has prevented foreign tax authorities from directly litigating in the U.S.