Skatteforvaltningen (The Danish Customs And Tax Administration) v Solo Capital Partners LLP & Ors [2021] EWHC 974 (Comm) (27 April 2021)

Skatteforvaltningen (The Danish Customs And Tax Administration) v Solo Capital Partners LLP & Ors [2021] EWHC 974 (Comm) (27 April 2021)

SKAT's claims, in substance, seek to recover tax refunds paid out under Danish tax law and are therefore inadmissible in the English courts under Dicey Rule 3 as indirect enforcement of foreign revenue law. The form of the claim (fraud, restitution, unjust enrichment, etc.) does not alter its substance as a revenue claim. The Brussels-Lugano regime does not require the English court to entertain such claims, as they fall outside 'civil and commercial matters' due to their revenue nature.

Citation
[2021] EWHC 974 (Comm)
Parties
Claimant: SKATTEFORVALTNINGEN (the Danish Customs and Tax Administration); Defendants: Solo Capital Partners LLP (in special administration) and others
Jurisdiction
England and Wales
Judgment Date
27 April 2021
Procedural Posture
Civil Commercial Court Consolidated Claims / Preliminary Issue Trial (revenue Rule Trial) on Admissibility Under Dicey Rule 3
Outcome
SKAT's claims are inadmissible in the English courts under Dicey Rule 3 to the extent they seek to recover tax refunds as enforcement of Danish revenue law.
Legal Topics
Enforcement of Foreign Revenue Laws, Jurisdiction, Fraud, Restitution, Negligence, Unjust Enrichment
Conflict of Laws Commercial Law Tax Law Enforcement of Foreign Revenue Laws Jurisdiction Fraud Restitution Negligence +1 more

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Parties

SKATTEFORVALTNINGEN (the Danish Customs and Tax Administration)

Claimant

Solo Capital Partners LLP (in special administration) and others

Defendants

Procedural Posture

Civil Commercial Court Consolidated Claims / Preliminary Issue Trial (revenue Rule Trial) on Admissibility Under Dicey Rule 3

Legal Issues

  1. 1 Whether SKAT's claims are inadmissible in the English courts under Dicey Rule 3 as enforcement of foreign revenue law
  2. 2 Whether claims for return of tax refunds paid by mistake are revenue claims under Dicey Rule 3
  3. 3 Whether the Brussels-Lugano regime precludes application of Dicey Rule 3 to certain defendants

Ratio Decidendi

SKAT's claims, in substance, seek to recover tax refunds paid out under Danish tax law and are therefore inadmissible in the English courts under Dicey Rule 3 as indirect enforcement of foreign revenue law. The form of the claim (fraud, restitution, unjust enrichment, etc.) does not alter its substance as a revenue claim. The Brussels-Lugano regime does not require the English court to entertain such claims, as they fall outside 'civil and commercial matters' due to their revenue nature.

Court Disposition

SKAT's claims are inadmissible in the English courts under Dicey Rule 3 to the extent they seek to recover tax refunds as enforcement of Danish revenue law.

Orders

  • Claims dismissed as inadmissible under Dicey Rule 3 insofar as they constitute enforcement of foreign revenue law.
  • No order as to costs at this stage; further case management to follow for remaining issues.