Reported by
Vinicius Madureira
Dubai authorities have arrested British financier Sanjay Shah in connection with a massive tax fraud scheme that allegedly siphoned US$1.7 billion from the Danish government. Shah is accused of orchestrating a fraudulent dividend tax refund scheme between 2012 and 2015, which involved over 3,000 false refund applications. Danish authorities have now requested Shah’s extradition, and a binational extradition treaty between Denmark and the UAE will help facilitate his transfer back to Denmark.
The arrest, hailed by Denmark’s Minister of Foreign Affairs Jeppe Kofod, marks a significant step in the long-running investigation into the so-called cum-ex tax scandal, which involved investors claiming multiple refunds on the same dividend tax payments. Minister Mattias Tesfaye of Denmark expressed his satisfaction with the arrest, emphasizing the importance of international cooperation in combating financial fraud.
Shah, who managed the Solo Capital hedge fund, is accused of acting on behalf of several investors and corporations. Over the course of several years, Shah allegedly exploited legal loopholes across multiple European countries, submitting fraudulent applications for dividend tax refunds from the Danish treasury. The scheme is said to have been carefully planned and executed, ultimately defrauding the Danish government of billions of dollars.
Despite his involvement in the scheme, Shah’s wealth grew substantially. By 2017, he was reported to own properties in Dubai valued at approximately $56 million. His role in the cum-ex scandal and other tax-related frauds has made him a target of multiple international investigations.
Shah’s arrest in Dubai follows charges against him in Denmark, where he faces a prison sentence of 8 to 12 years if convicted. The arrest ends Shah’s plan to evade authorities by living in the UAE, which had long been a hub for financial criminals exploiting international tax loopholes. As Shah awaits extradition, Danish officials are hopeful that his trial will bring justice for the billions lost in this sophisticated financial fraud.