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Mr Justice Andrew Baker, sitting in Skatteforvaltningen (The Danish Customs And Tax Administration) v Solo Capital Partners LLP & Ors (Costs), ruled it would be unjust to apply the default rule potentiality limiting cost recovery by the defendants to proportionate costs. The defendants will also not be required to prove the reasonableness of the costs incurred in fighting the claims. The judge said the ‘just outcome’ was that he make no reference to proportionality in his ruling, and that it should be for the claimant to show that costs must be disallowed as unreasonably incurred. He added: ‘It is fair to presume in all the defendants’ favour that admissible cost in fact occurred was reasonable, requiring SKAT to show otherwise for any item or amount of cost to which it objects.’ ....
Nick Leigh The claims – SKAT is short for Skatteforvaltningen, the Danish Customs and Tax Administration – had been brought as part of a wide-reaching pursuit to recover circa £1.5 billion lost in 2012 to 2015 to dividend tax reclaims which SKAT alleged it was not liable to pay. Its various causes of action – against more than 100 defendants in total – included allegations of fraud, negligent participation and negligent misstatement. The trial was expected to last more than a year. Two mini-trials to address preliminary issues that would subsequently inform the main proceedings were themselves on the scale of serious High Court litigation. It is the first of such mini-trials that has given rise to the decision of Mr Justice Andrew Baker: to dismiss all of the claims in one go. ....
By Jemma Slingo2021-04-28T10:16:00+01:00 A mammoth tax fraud case involving over 100 defendants and 18 solicitors’ firms has fallen at the first hurdle after a judge ruled that Denmark is not entitled to enforce its own tax laws through an English court. The Danish national tax authority (SKAT) brought action against 114 defendants in a bid to recover £1.5bn paid out in dividend tax reclaims between 2012 and 2015. The authority alleges it was wrongly induced to make the refunds. The case was expected to be one of the most expensive in the commercial court’s history, with 21 separate legal teams from 18 firms of solicitors responding to SKAT s various claims. The litigation was due to last for more than a year and was divided into three trial hearings. ....