Aziz Rahman outlines the Danish tax authority’s costs obligations after its failed UK Cum-Ex fraud claim

The Danish tax authority has been ordered by a UK court to pay £46 million in legal costs after its unsuccessful attempt to sue a hedge fund investor over Cum-Ex.
City AM asked Rahman Ravelli’s Aziz Rahman for his thoughts on the tax authority (Skat) being told to pay £46 million of the £72 million it owes within a week. The costs arose from Skat’s failed £1.5 billion fraud claim against Sanjay Shah in the High Court.

Aziz said that the costs will not have been a shock to Skat. It is established legal procedure to budget the costs of a case before it is heard in court. He added that it would not be a surprise if Denmark pursued further legal action – possibly civil action or criminal proceedings – in an attempt to hold to account those it believes are to blame for the share selling scandal.

Cum-Ex involved trading in shares in a way that enabled tax credits to be claimed by both buyers and sellers. As a result, treasuries in a number of countries paid out large amounts in rebates.

Authorities in various states are now looking to recoup the money they paid out as a result of Cum-Ex. Some are also looking to bring legal action against those they believe were to blame for Cum-Ex.

Aziz's comments featured in City AM. 

Featured at: City AM