Danish Tax Authority Loses Landmark Case Against Hedge Fund
Denmark's tax authority, SKAT, lost a $1.95 billion lawsuit in a London court against Sanjay Shah's hedge fund. The court ruled SKAT was not misled in "cum-ex" tax refund claims, blaming ineffective controls instead. SKAT plans to appeal the decision, despite the 12-year sentence for Shah in Denmark.
In a significant legal setback, Denmark's tax authority, SKAT, has lost its $1.95 billion lawsuit against Sanjay Shah's hedge fund, Solo Capital, in London's High Court. The case revolved around alleged defrauding of the Nordic state through "cum-ex" tax refund claims between 2012 and 2015.
Judge Andrew Baker concluded that SKAT was not misled by Sanjay Shah or his associates, emphasizing that the real issue lay in the tax authority's inadequate controls. He described SKAT's procedure for processing dividend tax refund claims as 'flimsy' and almost non-existent.
SKAT disagrees with the judgment and intends to appeal. The Danish agency has been pursuing Shah for years, leading to his extradition from Dubai and a 12-year prison sentence in Denmark for a separate $1.4 billion fraud case. Chris Waters, Shah's lawyer, praised the ruling as a victory for his client.
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- SKAT
- London court
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- financial fraud
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