Author: Azizur Rahman 10 June 2021
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.
Aziz Rahman is Senior Partner at Rahman Ravelli and its founder. His ability to coordinate national, international and multi-agency defences has led to success in some of the most significant corporate crime cases of this century and top rankings in international legal guides. He is recognised worldwide as one of the most capable legal experts regarding top-level, high-value commercial and financial disputes.