Danish tax authority loses its fraudulent misrepresentation battle in the High Court.
The Commercial Court found that Skatteforvaltningen (the Danish Customers and Tax Administration) did not present enough evidence to suggest a fraud was perpetrated by 56 defendants with regard to over 4,000 dividend tax refunds claims to the value of £1.4 billion.
Court’s Findings
Mr Justice Andrew Baker noted that the defendants had been motivated by greed in being involved in the scheme but that the tax authority had not put forward evidence to show that they intended to deceive Skat into paying refunds. He added that Skat’s controls for assessing and paying the refund claims were ‘so flimsy as to be non-existent.’
The Danish tax authority [Skat] claimed that between 2012 and 2015, it was misled into paying refund claims relating to trading in Danish shares on a cum-ex basis by 106 defendants. Only 56 defendants were considered by the High Court in London, including Sanjay Shah, founder of Solo Partners, one of the main individuals involved in the scheme. Skat alleged that the defendants were aware a fraud was being carried out and continued to participate in the scheme due to greed.
Who was involved?
This case has involved an enormous list of barristers with many ranked in Chambers UK Bar Guide.
Abra Bompas, Michael d’Arcy, Gideon Cohen, James Ruddell, Ben Zelenka Martin, KV
Krishnaprasad, James Gardner, Matthew Hoyle and Sabrina Nanchahal (instructed by
Pinsent Masons LLP) appeared for the Claimant Skatteforvaltningen.
Nigel Jones KC, Lisa Freeman, Sarah McCann, Emily Betts, Miguel Henderson, Alice
Whyte and Thomas Mitty (instructed by Meaby & Co Solicitors LLP) appeared for the Shah Defendants.
David Head KC, Christopher Bond, Tom De Vecchi, Hannah Glover and Sophia Dzwig
(instructed by DWF Law LLP) appeared for the DWF Defendants.
Hugh Jory KC (instructed by Penningtons Manches Cooper LLP) for John Devonshire.
Linos Choo of Keystone Law, with the permission of the court, for Jas Bains
Paul Baker and Arthur Hogarth, each a partner in the LLP, for Lindisfarne Partners LLP,
with the permission of the court.
Paul Preston represented himself at trial except that for closing argument he was represented (in writing and orally) by Gary Hayes (instructed directly).
James Hoogewerf and Charles Knott each represented himself at trial, but with written
opening submissions settled by Ian Bergson (instructed by Reed Smith LLP).
Martin Smith represented himself at trial, but with written closing submissions settled by Jonathan Rose.
Daniel Fletcher, Jonathan Godson, Mankash Jain, Guenther Klar, Owen Mitchell,
Michael Murphy and Paul Oakley each represented themselves at trial.