CUM-EX dispute by 1.7 billion euros: the courtroom dismisses Denmark’s billion greenback lawsuit | EUROtoday

It is a heavy setback for Denmark in worldwide tax fraud with “Cum-Ex” inventory enterprise. Last week, the London High Court rejected a declare for damages by the Danish tax and customs authority SKAT of 1.7 billion euros towards the hedge fund Solo Capital of the British inventory trade seller Sanjay Shah and lots of different inventory sellers.

A message from the courtroom states that for all claims pursued by Skat, together with fraud, proof is critical that the Danish tax authorities have been misleaded by particular false statements. But the applicant couldn’t present this proof. Skat doesn’t need to settle for the choice and has already introduced an attraction.

With the lawsuit, Denmark claimed the reimbursement of illegally reimbursed dividend taxes. Stock merchants equivalent to Sanjay Shah and his hedge fund Solo Capital, banks and particularly American pension funds had had the cash paid out by the Danish tax authorities between 2012 and 2015. Their process was just like the Cum-Ex instances in Germany: They acted across the dividend date with securities from 20 firms listed within the Danish main index OMX Copenhagen. Afterwards they submitted functions for firms primarily based overseas, typically American pension funds.

As a end result, a withholding tax that had solely been paid as soon as was reimbursed a number of occasions. After a whistleblower had given info, the authority employed the tax refunds in August 2015. The complete harm is estimated in Denmark at two billion euros.

In complete, Skat had directed the lawsuit in London towards 56 defendants, together with 21 inventory merchants. After a prolonged preliminary process, through which the accountability of the British judiciary needed to be clarified, choose Andrew Baker negotiated on 138 appointments within the trial from April 2024 till this spring. Even for the London High Court skilled in complicated worldwide authorized disputes, the mammoth course of was a problem. Before that, different dishes in Dubai and New York had largely proper.

In the civil dispute in London, the Danish tax authority continued to consider that this had been unauthorized functions for reimbursement of retained dividend tax. Kim Tolstrup, director of the Danish tax authority, is cited in a message in a message. “It is a surprising judgment that we do not agree with at all. That is why we now want to make an appeal.” Skat wished to drive the case so far as doable to deliver the cash again from the dividend tax fraud for the Danish state treasury.

According to guage Baker’s choice, the inferior tax authority additionally has to pay the method and legal professional’s charges of Solo Capital, Shah and the opposite defendants- that is additionally on the expense of the Danish taxpayers. From Tolstrup’s standpoint, this isn’t an issue. “We have prepared for the fact that an appeal is made against the judgment – but not by ourselves. This means that we have already planned the additional costs associated with an appeal.”

Sanjay Shah, who was a significant a part of the inventory transactions, couldn’t personally participate within the courtroom proceedings. While the process was operating in London, the British monetary supervisor in Denmark himself was made. Shah was sentenced to 12 years in jail for tax fraud. The choice isn’t but remaining, Sha’s attorneys have lodged an attraction.