After losing a major fraud case in London, Denmark’s Tax Agency turns to world-renowned lawyer Lord David Pannick to try reviving parts of the dividend tax scandal. The appeal aims to recover billions lost in one of the biggest tax frauds in Danish history.
Denmark’s Tax Agency Fights Back After Costly London Defeat
Following a crushing loss in the High Court in London, Denmark’s Tax Agency (Skattestyrelsen) is making one more attempt to recover massive sums from the dividend tax scandal. The agency is appealing a limited portion of the case, focusing only on five defendants: Sanjay Shah, Anthony Mark Patterson, Guenther Klar, Rajen Ranmal Shah, and Graham Horn.
Court documents filed in the Court of Appeal show that the new appeal omits about twenty other people who were originally accused. As a result, many of those defendants can temporarily breathe easier. The court is expected to review the case in the first half of 2026.
The move to appeal comes after a stunning High Court ruling on October 2, where the judge dismissed Denmark’s claims of large-scale fraud. This decision left the government facing an enormous financial and legal setback.
A Billion-Dollar Legal Battle
Skattestyrelsen has already spent roughly 1.3 billion Danish kroner on lawyers in the United Kingdom alone. Overall, the state has poured at least 12.7 billion kroner into litigation efforts related to the dividend tax scandal. Now, Danish taxpayers must also cover the legal costs of the defendants, including Sanjay Shah and others, potentially adding billions more to the bill.
So far, the government has only managed to recover about 3.5 billion kroner, mostly through settlements in the United States and the United Kingdom. The goal of the renewed appeal is not only to regain even more of the lost money but also to protect future legal positions connected to ongoing international proceedings.
For further perspective on the Danish government’s financial strategy, see more about Danish tax changes.
Hiring One of the World’s Most Prominent Lawyers
To lead the new appeal, Denmark’s Tax Agency has brought back Lord David Pannick, one of the best-known barristers in the British legal world. He previously worked on the same case several years ago, managing to reopen it after an earlier dismissal.
Lord Pannick, who carries the prestigious King’s Counsel title, has represented clients in numerous prominent cases, including the English football club Manchester City. His return to the Danish case underlines how high the stakes have become for Denmark’s tax authorities.
The Tax Agency is expected to spend around 1.5 million pounds—about 13 million Danish kroner—on Lord Pannick’s role in the appeal. In total, officials estimate that their legal efforts to reclaim the missing funds will eventually cost at least 4.3 billion kroner, not counting potential reimbursements to the defendants.
Partial Victory in Criminal Court
While the civil cases drag on across borders, Danish police and prosecutors have already achieved partial victories in criminal court. The main figure in the scandal, Sanjay Shah, was sentenced in December 2024 to twelve years in prison by the District Court in Glostrup and was ordered to forfeit about three billion kroner. He has appealed that decision to the Eastern High Court (Østre Landsret).
Two others, Anthony Mark Patterson and Guenther Klar, have also received long prison sentences and lost more than 250 million kroner to confiscation. Additional criminal cases against Graham Horn and Rajen Shah are scheduled for 2026.
Reducing the Scope of the Appeal
A director at the Tax Agency has explained that the decision to limit the appeal to just five key individuals was based on advice from its British legal team and the Danish government’s own counsel, Kammeradvokaten. By narrowing the focus, the agency hopes to increase the chances of gaining permission to appeal.
The agency maintains that these five main actors and certain companies are responsible for the total losses suffered by Denmark. Officials also stress that pursuing the appeal is essential to avoid negative consequences in related international cases and to secure as much money as possible for Danish taxpayers.
Ultimately, the agency’s legal crusade remains one of the costliest and most complex cases in Denmark’s financial history. Whether Lord Pannick’s expertise can change the outcome will become clear once the Court of Appeal in London makes its decision in 2026.
Sources and References
The Danish Dream: Danish Tax Cuts Ahead But Beware Surprises
The Danish Dream: Best Lawyer In Denmark For Foreigners
TV2: Skat hyrer stjerneadvokat og anker nederlag i skandale-sag
