British hedge fund trader is ordered to pay £1BILLION to Danish authorities for tax fraud
- Sanjay Shah was arrested in the United Arab Emirates’ financial hub in June
A Dubai court has ordered a British hedge fund trader convicted of massive fraud to pay Denmark’s tax authority more than $1.2 billion.
Sanjay Shah was arrested in the United Arab Emirates’ financial hub in June upon request by Danish authorities who accuse him of helping companies fraudulently claim tax refunds.
Shah supposedly ran the scheme for three years starting in 2012, in which foreign firms pretended to own shares in Danish companies and claimed refunds.
In its final ruling on Tuesday, the Dubai Court of Cessation ordered Shah to pay 4.643 billion dirham ($1.26 billion), according to a copy of the ruling seen by AFP.
Together with a court-ordered five-percent interest accrued from when the case was first lodged in August 2018, the total sum should be close to the losses incurred by the Danish tax authority as a result of the scam – estimated at 1.7 billion euro.
Sanjay Shah was arrested in the United Arab Emirates’ financial hub in June
Danish authorities accuse the hedge fund trader of helping companies fraudulently claim tax refunds
Shah’s lawyers were not immediately available for comment.
OGH Legal, a Dubai-based firm representing the Danish authorities, said: ‘This conclusive ruling after a nearly five-year pursuit of justice underscores the serious and uncompromising stance of the UAE authorities against financial misconduct.
‘The process of execution in terms of how this money will be paid back to (Denmark’s tax agency) SKAT has already been initiated.’
Shah has claimed innocence and argued he had not violated Danish law, according to media reports in the UAE.
He was arrested by Emirati authorities under an extradition treaty signed with Denmark in March 2022.
The trader previously had his £14.7million Hyde Park mansion seized by Denmark after being accused of the fraud.
Danish ministers have also previously declared their intentions in ‘brining Sanjay Shah to justice’, having targeted him since 2015.