Syed Rahman outlines Denmark’s options after it suffered a “devastating blow’’ losing its £1.4 billion Cum-Ex claim

Reuters and Law360 asked for Syed Rahman’s opinion on Denmark losing its £1.4 billion legal claim against traders and financial institutions involved in the controversial share-selling practice Cum-Ex.

Syed described the ruling in London’s High Court as a "devastating blow" to the Danish tax authority, SKAT.

He explained to Law360 that SKAT could challenge the decision on appeal and could also apply "more investigative pressure" abroad, in jurisdictions where it has already secured wins and cooperation. He added that the ruling “does not erase criminal risk or foreign civil claims, but it changes the bargaining table in London. Defendants will now cite London as a shield in settlement talks, even if they still face criminal proceedings and civil claims elsewhere.'’

The case is the latest chapter in the long-running saga relating to Cum-Ex, which saw state treasuries across Europe paying out billions of euros to those who exploited a loophole in dividend payments to claim tax rebates.

The full articles can be read here.

Danish tax authority loses $1.9 billion London 'cum-ex' tax fraud case

Denmark's £1.4B Cum-Ex Loss Raises Legal Strategy Doubts (subscription required)

Featured at: Reuters