A British hedge fund trader has been sentenced to 12 years in prison in Denmark for a billion-pound tax fraud.
Sanjay Shah54, was behind a business scheme known as ‘cum-ex’ which fraudulently obtained 9 billion Danish kroner (£1 billion) in dividend tax refunds from the Danish Treasury between 2012 and 2015.
Shah, who appeared in court wearing a red Christmas hat, denied any wrongdoing, arguing he had used a legal loophole and immediately appealed the guilty verdict to the Danish High Court.
Prosecutors are seeking the maximum sentence of 12 years in prison, one of the longest for tax fraud in the country’s history.
Shah was arrested in Dubai in 2022 and extradited to Denmark the following year to face prosecution.
Prosecutors said the investors, led by Shah Solo Capital Partners’ London-based hedge fund, quickly traded shares on the day dividends were paid, creating the illusion of numerous owners, each apparently eligible for a refund of dividends. dividend tax.
Shah said in court that the transactions allowed participants to claim ownership of shares, thereby being entitled to tax refunds even though they did not own the shares and never paid tax on them. dividends in Denmark.
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In an interview with Danish broadcaster TV2 before the verdict, Shah called himself a “greedy bastard” and said his business plan was “like playing Space Invaders”, where he wanted to beat his previous record.
He also faces a £1.44 billion civil tax fraud case at the High Court in London, filed by the Danish Tax Office and expected to conclude in April.
Shah previously told the court via video link from Denmark that a legal ‘flaw’ enabled a business strategy which was so successful he bought a Ferrari and paid himself a £19m bonus at the age of 40.