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Q&A: Supreme Court finds for Danish tax authority

20 November 2023 / Hugh Gunson
Issue: 4914 / Categories: Comment & Analysis
Hugh Gunson reviews the Supreme Court decision in SKAT on the application of the revenue rule.

The Supreme Court has unanimously found in favour of the Danish tax authority (SKAT) in Skatteforvaltningen v Solo Capital Partners LLP and others [2023] UKSC 40. The court held that SKAT’s claims against various parties involved in the ‘cum-ex’ scandal were not inadmissible as a result of the revenue rule – essentially this is not an attempt to enforce Danish tax laws in the English courts. This means that the claims can proceed to a full trial (scheduled to start in April 2024).

What are the facts of this case?

The background to this case is the vast ‘cum-ex’ scandal which has hit many European jurisdictions including Denmark. Broadly this was a tax arbitrage scheme targeting legislative provisions which permitted non-resident shareholders to reclaim income tax withheld on dividend payments. In essence cum-ex involved reclaiming withholding tax multiple times as the same shares were transferred rapidly between...

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