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Niall Hearty outlines the significance of Denmark's £1.4 billion Cum-Ex case

Author: Niall Hearty  12 April 2024

Posted in : Cum-Ex Media Coverage .

With Denmark opening its £1.4 billion Cum-Ex fraud case in London, Law360 asked Niall Hearty for his thoughts about it.

The Danish tax authority, known as Skat, is to argue that financial institutions made fraudulent applications for tax rebates via the Cum-Ex-process. This involved exploiting a loophole in dividend payments so that more than one party could claim tax rebates, even though the tax had only been paid once at most.

The case is the first known litigation brought directly by the foreign revenue agency of a sovereign state in the English courts.

Niall explained that with the trial now finally going ahead after unsuccessful attempts to derail it, "there is the feeling that it is going into the legal equivalent of uncharted waters."

He added: "Any case that is expected to last a year is likely to present logistical challenges.

"The amount of evidence to be heard, and the legal arguments used in a year-long case, will ensure that the workload of the judge — and others managing the case — is set to be a heavy one."

Niall emphasised that the outcome of the proceedings will have broader implications, particularly if the judge determines that this type of dividend trading is illegal under English law.

He said: "This is a case that obviously has huge significance for both Skat and the financial institutions it has targeted with legal action. But the court's eventual ruling on whether what was conducted amounted to fraudulent applications for tax rebates or legitimate use of legally compliant trade structures may be looked at far beyond London."

The full article can be read here.

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Niall has a wealth of corporate crime expertise and an ability to coordinate global bribery and corruption cases. His achievements in such investigations have made him a logical choice for corporate clients.

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