Skatteforvaltningen (the Danish Customs and Tax Administration) v Solo Capital Partners LLP and ors has been listed in The Lawyer’s Top 20 Cases of 2021, released on 1st February. Various members of 3VB are acting for groups of non-fraud and alleged fraud defendants in the £1.5 billion claim brought by the Danish tax authorities in relation to a sophisticated alleged dividend withholding tax fraud.
3VB has more counsel acting for more defendants in this action than any other set.
The Lawyer reports, “It was no exaggeration in June 2020 when Mr Justice Baker described this case as “litigation on a massive scale”, with almost 100 defendants listed alongside more than 20 separate legal teams.
The Kingdom of Denmark is the driving force behind the claim, while the lead defendant is a London-based hedge fund placed into special administration five years ago. Most of the defendants are alleged to have participated in the fraud, while claims have also been issued against others in respect of alleged negligence or unjust receipt of proceeds.
The case has already produced several curveballs due to its sheer size and magnitude, and as the High Court attempts to manage what could be one of the largest trials ever heard, 2021 will see two major preliminary issues take place.
The first of which, the Revenue Rule Trial, will occur over six days in March. This concerns whether the English courts can collect the taxes of foreign states for the benefit of foreign sovereigns. The defendants argue that the claim is barred by the centuries-old rule and should be thrown out.
The second, the Validity Trial, relates to the ingredients of what is a dividend arbitrage claim and will help sculpt the full trial should it proceed over the next few years. These two hearings will no doubt prove to be the first true tests of this ever-growing claim, with more than £1bn worth of damages on the line.”
The members of 3VB involved are:
For the defendants, Graham Horn, Anupe Dhorajiwala and Rajen Shah:
For the defendant, Indigo Global Partners:
For the defendant, Lindisfarne Partners:
For the defendant, ED&F Man Capital Markets Limited:
For the defendants, Jas Bains, Godson, Michael Murphy:
Yash Bheeroo, instructed by Ariff Rozhan & Co.