The highest court of the United Arab Emirates ordered a British hedge fund trader convicted of staging a $1.7 billion tax fraud to pay that amount to the tax authority of Denmark.
Financier Sanjay Shah was sentenced in a lower court for masterminding a plan from 2012 to 2015. Under this scheme, foreign businesses pretended to own shares in Danish companies. They claimed tax refunds for which they were not eligible, which is why he was arrested last year in Dubai.
However, Shah and his lawyer declined to comment on the ruling on Tuesday.
The Court of Cassation also ordered Shah and many other foreign businesses involved in the scheme to post 5% interest in the $ 1.7 billion accrued from when the case was first filed in August 2018.
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A law firm OGH Legal in Dubai, acted on behalf of the Danish authorities stating in a statement, ” This conclusive ruling after the five-year pursuit of justice underscores the serious and uncompromising stance of the UAE authorities against the financial misconduct.”
Besides, the Dubai Appeals Court found Shah and his accomplices guilty of illegally extracting money from Danish tax authorities last September.
In a separate ruling, Shah was also ordered to be deported to Denmark after the Dubai court rejected his appeal against the deportation in April. However, he is predicted to face prosecution in Denmark on the tax fraud allegations.
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The 52 – year old financier has maintained his innocence in interviews with journalists but never did he appeal in Denmark to answer accusations.
The UAE has long approached the wealthy, including discredited public figures, to invest in the country without questioning from where they made their money. Hence, Shah’s arrest came simultaneously when pressure grew on Dubai about its alleged weaknesses in fighting financial wrongdoing.
However, recently the UAE has arrested many suspects wanted for significant crimes, including two brothers from South Africa, who were accused of facilitating vast public corruption and draining state resources with former President Jacob Zuma.
An Emirati official also recently became president of Interpol, the international police agency.
