We study the effect of stricter enforcement of the dividend-withholding tax (DWT). We focus on a 2016 Danish reform and compare Denmark to its Nordic neighbors. Before the reform, all countries have strong spikes in stocks on loan centered around the ex-dividend day, consistent with the most popular DWT arbitrage transactions. Post-reform, the spikes in Denmark disappear. We find that stricter enforcement resulted in approx. 1.3 bln USD in annual DWT revenue (130 % of pre-reform revenue) with no effect on cost of capital and dividend policy. We find similar results in reforms across Europe.