British businessman ordered by Emirates court to repay $1.3 billion to Denmark’s tax and customs service
The Dubai Court of Cassation has ordered British hedge fund founder Sanjay Shah, who is accused of planning a Dh5 billion ($1.36 billion) tax fraud, to return the amount to the Danish tax authority.
Investor Sanjay Shah was convicted by the Dubai Court of Appeal, lower than the Dubai Court of Cassation ruling on Tuesday, for orchestrating a scheme that ran from 2012 to 2015 in which foreign companies claimed ownership of shares in Danish companies and demanded a refund of taxes they did not pay. The accused was arrested in Dubai last year.
The Dubai Court of Cassation has ordered Shah and several foreign companies involved in the scheme to pay 55% interest on $1.36 billion owed since the lawsuit was filed in August 2018.
In a statement, a spokesman for the Danish authorities explained the Dubai law firm Al Omar & Al Sabah, saying, “This strong decision, after nearly five years of seeking justice, confirms the serious and firm stance of the UAE judiciary against any financial irregularity.”
Last September, the Dubai Court of Appeal found Shah and his partners guilty of illegally receiving funds from the Danish tax authorities, while his lawyers appealed the decision to the Court of Cassation, which on Tuesday upheld the previous decision and ordered Shah to pay 5 billion dirhams .
A separate order was also issued to extradite the Shah to Denmark after a Dubai court rejected his deportation appeal in April.
He is expected to stand trial in Denmark on tax fraud charges, although it is not yet clear when he will be extradited.
In press interviews, the 52-year-old investor pleads not guilty but never shows up in Denmark to answer the allegations, and his lawyers argued during closed hearings that Denmark did not follow the procedures set out in international extradition treaties.
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