A British judge has rejected Denmark’s attempt to revive its massive dividend tax fraud lawsuit, calling the appeal grounds “imaginative.” Danish authorities must now turn to the Court of Appeal by December 12 if they want the case reopened.
Judge Slams Danish Appeal Request
A British High Court judge has once again delivered a tough blow to the Danish tax authorities in the country’s largest tax fraud case. This latest decision came Friday when Justice Andrew Baker refused to allow Denmark to appeal a ruling that had already dismissed its multibillion-kroner claim against Sanjay Shah and several companies tied to the so-called dividend refund scheme.
In a 19-page decision, Judge Baker stated that Denmark had no realistic chance of success, describing the attempt to overturn his earlier ruling as “nothing more than a fanciful hope.” Danish authorities now have until December 12 to file a direct request with the Court of Appeal if they wish to continue the legal fight.
The rejection is the newest chapter in the long-running dividend tax fraud case that has haunted Denmark for nearly a decade.
Billions Lost and Years in Court
The dismissed case is part of a broader civil battle launched by the Danish tax agency, SKAT, involving more than 450 individuals and corporations in the United States, the United Kingdom, Dubai, Malaysia, Canada, the Netherlands, and Denmark. Danish officials claim these parties participated in a scheme that drained about 12.7 billion kroner from the country’s treasury between 2012 and 2015.
So far, the cases have cost Denmark billions in legal expenses. The tax agency has, however, scored several major courtroom victories that helped it recover part of the stolen funds. The October 2 ruling by Judge Baker was a rare defeat in the overall effort.
The judge found that even though the defendants had no legal right to the refunds they received, the Danish tax authority’s own procedures made the fraud possible. SKAT had approved refund requests without requiring supporting documentation to prove eligibility. According to the judgment, Denmark had effectively created a system that enabled false claims by overlooking basic controls.
Judge’s Criticism of Danish System
Judge Baker’s earlier 326-page ruling placed significant responsibility on SKAT itself. He determined that the Danish tax refund system was designed in a way that allowed claims to be processed and paid automatically with minimal checks. That structure, in the court’s view, made the tax authority partly accountable for the losses.
Because of that, the judge concluded that Denmark could not use English civil fraud law to demand the money back from the alleged fraudsters, even if they were aware they had no valid claim. His reasoning dealt a heavy blow to Denmark’s broader compensation efforts.
Danish Appeal Faces Tough Odds
Denmark immediately said it would pursue every possible step to challenge the ruling. Yet, Britain’s appellate process gives the original judge the first say on whether an appeal is allowed. Since Baker rejected the request outright, Denmark must now convince the Court of Appeal that the case deserves to be heard again.
The judge also dismissed the argument that the lawsuit holds significant public interest. According to him, that reason alone cannot justify an appeal. His comments noted that SKAT’s request for special treatment, based on its status as a “friendly foreign state,” could appear politically motivated, although he gave the agency the benefit of the doubt.
This skepticism highlights how far Denmark must go if it wants the billion-dollar case reconsidered. As of now, the country’s only option is to appeal directly to the higher court before the December deadline.
Next Steps for Denmark
If the Court of Appeal denies permission, Denmark will effectively reach the end of its legal road in the United Kingdom. Such an outcome would mark a major setback in its global effort to recover funds linked to the massive tax fraud. Still, Danish officials have made clear that they will continue pursuing cases elsewhere as part of a broader international strategy to recoup money lost through dividend tax schemes.
The battle underscores both the complexity and cost of transnational financial cases. Despite years of litigation, billions spent on legal fees, and occasional victories, Denmark’s tax authority is still fighting to close one of the largest financial scandals in its history.
Sources and References
The Danish Dream: Danish Tax Fraud: Lock Up British Man for 7.5 Years
DR: Dommer giver Danmark ny lussing: kalder milliardkrav fantasifuldt
