Sanjay Shah Extradited to Denmark in Billion-Dollar Tax Fraud Case
The alleged mastermind behind Denmark's largest-ever tax fraud arrived at Copenhagen Airport in handcuffs on October 25, 2024, ending years of diplomatic wrangling with the UAE.
Quick Facts
Sanjay Shah arrived at Copenhagen Airport in handcuffs and under heavy police escort on October 25, 2024, and was immediately transferred to Vestre Prison in Copenhagen. The extradition marked the end of a years-long international legal pursuit and the conclusion of a drawn-out diplomatic process between Denmark and the United Arab Emirates.
What Is Cum-Ex Fraud?
Cum-Ex schemes are a sophisticated form of tax fraud in which shares are artificially traded between multiple parties around dividend payment dates. The aim is to create the appearance that withholding tax on dividends has been paid — when in reality it has not, or has only been paid once — allowing multiple parties to claim refunds from tax authorities for the same tax payment.
In the Danish case, the fraud ran from 2011 to 2015 and resulted in unlawful refunds of Danish dividend withholding tax totalling DKK 12.723 billion (approximately $1.8 billion). The case has since been described as one of the largest financial frauds in Danish history. tax fraud Denmark
Sanjay Shah's Role and Co-Defendants
Sanjay Shah, a British national and former hedge fund manager, has been described as the central architect of the scheme. He has consistently pleaded not guilty and dismissed the charges as unfounded.
