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Danish daily Jyllands-Posten: Sanjay Shah prepares himself for showdown over the 9 billion DKK, that vanished from Danish tax authority Skat

August 23, 2016

Jyllands-Posten, August 17, 2016

FRAUDCASE: The main suspect in the case about fraud with dividend tax communicates again – this time through his media adviser
The British businessman Sanjay Shah, who is suspected of having emptied the Danish Treasury for at least 9 billion DKK in dividend tax is preparing for the showdown with the Danish authorities, reports Jesper Høberg at Danish daily Jyllands-Posten Finans:
“The 45 year old Briton living in Dubai is supported by a team of lawyers, media advisers and others, and he declares himself ready to come to Denmark for the showdown, says Jack Irvine, who describes himself as media – and political adviser for Shah.
“With pleasure Mr. Shah accepts any possibility to defend himself, wherever in the world, if charges are raised or court cases initiated,” Jack Irvine says in an email to Danish daily Jyllands-Posten.
According to Sanjay Shah, he is being investigated by authorities in Denmark, Germany and Great Britain, but none of the countries have raised charges for anything, and the Danish authorities have not even attempted to question Shah or asked for information, writes Jack Irvine.
Morten Jakobsen, head of Danish Serious Fraud Office (Bagmandspolitiet) who is investigating the case in Denmark has no comments.
ONLY ONE INTERVIEW
Earlier in his carreer Jack Irvine worked in the British printed press both as a reporter and as an editor , but in 1991 he established the advising agency ‘Media House International’ with offices in Glasgow, London and New York.
The company is specialized in crisis management and lobbyism.
He has not wished to answer, who else is participating in Sanjay Shah’s team of advisers, however the team has advised the businessman not to participate in interviews about the case.
Hitherto, Sanjay Shah has only once talked about the case, as it appears from his point of view. That was in an interview with the daily Børsen in March. At that time he acknowledged having drawn 9 billion DKK from the Danish Treasury – and probably even more.
COMPANIES QUOTED ON THE STOCK EXCHANGE
The money was paid when Shah’s company, Solo Capital, on behalf of customers asked for refunding of dividend tax paid in connection with returns from Danish companies registered on the stock exchange.
The system of repayments is a means to ensure, that foreign shareholders are not paying more tax, than the countries’s double taxation conventions (DTCs) ask for, but Danish Skat is of the opinion, that the system has been abused to seek refunding for dividend tax that never was paid in the first place.
For example, according to Danish Skat, refundings have been paid, that concerns companies noted on the stock exchange, which haven’t paid returns at all.
Among other things this happened by using falsified shareholding records, and in reality Skat did not carry out any controls, until the authority suddenly realized that billions had been paid out unlawfully.
However, Sanjay Shah told Børsen, that he acted on the consultancy from among others Danish lawyers, and that everything had taken place in accordance with the law.
It is said to have happened through the socalled cum/ex tradings, where shares are lend out around the time of dividend payments.
In Germany and Great Britain such tradings are being investigated as fraud, because they among other things have caused several parties to ask for refund of dividend tax concerning the same shares.
Jack Irvine points out, that cum/ex “not only is a question about two refunds per share”, and he maintains that Sanjay Shah and Solo Capital have been working inside the legal framework, and that it is the politicians, who are to blame by not creating a sufficiently robust system.
Danish tax lawyers distance themselves from that explanation, and Mr. Shah’s former advisor on taxation in Denmark, Nikolaj Bjørnholm, has asked Mr. Shah to publish his consultancy. Are you going to do that?
“Solo has acted in accordance with guidance from Mr. Bjørnholm as well as other legal advising. I understand it so, that Solo’s clients have received their own legal advising, but this we have not seen,” answers Jack Irvine.
“ACCORDING TO DANISH LAW”
Nikolai Bjørnholm says in a comment:
“ I have not advised Sanjay Shah. I have given Solo Capital a delimited consultancy about American pension funds’s rights to refunding from Danish dividend tax. My consultancy has been in accordance with Danish law. The Danish Bar and Law Society has looked through my consultancy and had no comments.”
Jyllands-Posten also asked Jack Irvine, how dividend tax could possibly be paid concerning companies, that did not pay out profits in the first place, if everything happened in accordance with the law?
“No requests for refunding have been sent concerning companies , that did not pay dividend. It is the first time we hear this accusation,” the question is answered.
When did Mr. Shah begin to request repayment of dividend tax in Denmark, and how did he become aware of the possibility to do so?
“Neither Mr. Shah or companies he owns or has shares in have ever asked for repayment of dividend tax in Denmark. Solo acted on behalf of companies and funds, who did so. The possibility has existed in at least 10 years.”
According to our sources Solo Capital’s clients were basicly companies controlled by Mr. Shah. Do you agree?
“This is simply wrong.”
In June it emerged, that Danish Serious Fraud Office has charged an employee at Skat with co-operation. This fact is unknown to Jack Irvine, and he says that it is the first time he hears about it.
Mr. Shah told Børsen, that he for the time being is being investigated in Germany, Great Britain and Denmark. Is this still the case?
“There is a joint team of investigators consisting of authorities from Great Britain, Denmark and Germany working on the case. After almost a year has passed there are still no proofs of fraud.”

See the original story written by reporter Jesper Høberg here:

https://www.google.dk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwig0oiJttfOAhXDBSwKHdfjDrcQFggbMAA&url=http%3A%2F%2Fwww.jyllands-posten.dk%2Fprotected%2Fpremium%2Ferhverv%2FECE8922664%2Fsanjay-shah-laensede-statskassen-for-mindst-9-mia-kr-nu-ruster-han-sig-til-opgoeret-med-skat%2F&usg=AFQjCNHSNnxtZWGe-U4KlVDpvexcYChHNw&bvm=bv.129759880,d.bGg

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