Summary
Denmark's tax authority lost a £1.4 billion fraud case in the UK High Court against entities accused of using a financial scheme to wrongfully claim tax refunds. The court ruled that the Danish authority was not misled into making these payments, and the refund claims examined were not valid under Danish tax law. Denmark plans to appeal the decision.
Key Facts
- Denmark's tax authority, known as Skat, lost a fraud case involving £1.4 billion at the UK High Court.
- The case focused on alleged misuse of "cum-ex schemes" to claim false tax refunds.
- Sanjay Shah, linked to the defunct hedge fund Solo Capital Partners, was a key figure in the case.
- The court ruled that Skat was not misled into paying these tax refunds.
- None of the refund claims met Danish tax law standards.
- The judgment criticized Skat's weak controls over tax refund assessments.
- Denmark intends to appeal the court's decision.
- Cum-ex schemes exploited legal loopholes in the dividend payment process to claim multiple tax refunds.
