UK Supreme Court Holds Danish Tax Authority Can Proceed with Claims to Recover Fraud in the UK

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Friday, November 10, 2023
Bruce Zagaris

On November 8, 2023, the U.K. Supreme Court held that the Danish tax authority can proceed with claims in U.K. courts to recover approximately $1.9 billion in dividend tax refunds that were allegedly fraudulently claimed by cum-ex traders. The appeal concerned the admissibility of claims made by Skaffeforvaltningen (SKAT), the Danish customs and Tax Administration, against Mr. Sanjay Shah and the companies related to him.  Shah and entities (appellants) argued that the claims seek to enforce, directly or indirectly, Danish tax laws or the public laws.  The question was whether “the revenue rule,” which is a common law principle whereby courts on one country should not enforce tax laws of another country, applies to this case.