Skatteforvaltningen (The Danish Customs And Tax Administration) v Solo Capital Partners LLP & Ors

Skatteforvaltningen (The Danish Customs And Tax Administration) v Solo Capital Partners LLP & Ors

All of SKAT's claims, though framed in private law causes of action, are in substance attempts to enforce the Kingdom of Denmark's sovereign right to tax dividends under Danish law; the central interest is the vindication of Danish revenue law, not a patrimonial claim; Dicey Rule 3 applies and renders such claims inadmissible in the English court, regardless of the form of the claim or the use of private law labels; the Brussels-Lugano regime does not preclude the application of Dicey Rule 3, as it is a substantive rule of English law and not a rule of jurisdiction; all claims fall to be dismissed.

Parties
Claimant: SKATTEFORVALTNINGEN (the Danish Customs and Tax Administration); Defendants: Solo Capital Partners LLP (in administration) and others (including Sanjay Shah Defendants, DWF Defendants, Acupay System LLC, Messrs Knott & Hoogewerf, PS/GoC Defendants, Edo Barac Defendants, ED&F Man Capital Markets Ltd, Indigo Global Partners Ltd, HK Defendants, and others); Defendants: Other Defendants (various, some unrepresented or not appearing)
Jurisdiction
England and Wales
Judgment Date
27 April 2021
Procedural Posture
Civil (commercial Court, Preliminary Issue Trial) / Judgment on Preliminary Issue (revenue Rule Trial)
Outcome
All of SKAT's claims dismissed as inadmissible under Dicey Rule 3 (the revenue rule).
Legal Topics
Enforcement of Foreign Revenue Laws, Dicey Rule 3, Jurisdiction, Tax Refund Fraud, Private Law Claims by Sovereigns, Brussels Lugano Regime, Public Law Vs Patrimonial Claims
Conflict of Laws Tax Law Civil Procedure Enforcement of Foreign Revenue Laws Dicey Rule 3 Jurisdiction Tax Refund Fraud Private Law Claims by Sovereigns +2 more

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Parties

SKATTEFORVALTNINGEN (the Danish Customs and Tax Administration)

Claimant

Solo Capital Partners LLP (in administration) and others (including Sanjay Shah Defendants, DWF Defendants, Acupay System LLC, Messrs Knott & Hoogewerf, PS/GoC Defendants, Edo Barac Defendants, ED&F Man Capital Markets Ltd, Indigo Global Partners Ltd, HK Defendants, and others)

Defendants

Other Defendants (various, some unrepresented or not appearing)

Defendants

Procedural Posture

Civil (commercial Court, Preliminary Issue Trial) / Judgment on Preliminary Issue (revenue Rule Trial)

Legal Issues

  1. 1 Whether SKAT's claims to recover tax refunds paid out by mistake (allegedly induced by fraud/negligence) are inadmissible in the English court under Dicey Rule 3 (the 'revenue rule')
  2. 2 Whether the claims are, in substance, attempts to enforce Danish revenue law or exercise sovereign authority extra-territorially
  3. 3 Whether the Brussels-Lugano regime precludes the application of Dicey Rule 3 to claims against defendants domiciled in member states

Ratio Decidendi

All of SKAT's claims, though framed in private law causes of action, are in substance attempts to enforce the Kingdom of Denmark's sovereign right to tax dividends under Danish law; the central interest is the vindication of Danish revenue law, not a patrimonial claim; Dicey Rule 3 applies and renders such claims inadmissible in the English court, regardless of the form of the claim or the use of private law labels; the Brussels-Lugano regime does not preclude the application of Dicey Rule 3, as it is a substantive rule of English law and not a rule of jurisdiction; all claims fall to be dismissed.

Court Disposition

All of SKAT's claims dismissed as inadmissible under Dicey Rule 3 (the revenue rule).

Orders

  • All claims by SKAT are dismissed.
  • No order as to the merits of the underlying allegations of fraud, negligence, or unjust enrichment.