Claims of a multi-billion dirham tax fraud by the Danish government against British businessman Sanjay Shah have been dismissed by Dubai Court.
It is five years since Dubai-based Sanjay Shah first faced allegations of a £1.5 billion (Dh7.2 bn) tax fraud by the Danish government.
In that time, Mr Shah, 49, says he missed family bereavements, weddings and other important occasions as returning to Europe would likely lead to his arrest and detention, despite no formal charges levied against him.
In February, Mr Shah was forced to close his Autism Rocks Support Centre in Dubai, just three years after opening as a worldwide freezing order paralysed his business empire.
He stands accused by Danish tax authorities, SKAT, of exploiting a loophole in the nation’s financial system enabling him to build up an estimated fortune of £380 million (Dh1.8 bn).
Those claims were dismissed by a Dubai court on Wednesday, August 12, for lack of evidence.
A panel of three judges, Ahmed Mohi El-Din Hegazy, Mohamed Mihir Seif Bounawas Al Ketbi and Yousef Ahmed Yousef Al-Hamadeh, reviewed documents relating to the case in the Dubai Court of First Instance.
The panel decided, although the case was within UAE jurisdiction because Mr Shah lives in Dubai, there was not enough evidence provided by SKAT to support their claim against him.
With bank accounts and assets frozen by international agencies, Mr Shah has been reliant on rental income from property in London, Japan and elsewhere to fund his life in Dubai.
Mr Shah spoke to The National, in his first interview since allegations emerged in 2015, and claims no wrong-doing, just that he was exploiting a known loophole in the Danish tax system.
I want to re-open the autism clinic, but I need liquidity to be able to do that and I have tons of money sat in a bank account but it is not benefiting me or anyone else
“In those five years I’ve missed many important family occasions including funerals and weddings and my mother’s 80th birthday,” he said.
“I have some income to live on, for bills and my family, but my lawyers need millions to fight this case.
“I need to get back to work, but ever since this started I have had no choice but to do nothing.
“I am bored, frustrated and concerned about the damage to my reputation.
“I’ve tried to hire staff to help with my son (who is autistic) and they’ve said they do not want to work with me because of what they have read.
“I have been living with this long enough.”
In response, SKAT has filed an appeal against the decision from the Court of First Instance of the Dubai Commercial Circuit.
"The agency’s representatives understands the decision is not a rejection of the agency’s claim on the merits, but as argued on more procedural deficiencies in the documentation relating to the claim, which the agency does not agree with," a spokesman said.
"As the decision has been appealed it does not affect the agency’s claims with the courts. The agency has no further comments but will await the appeal court’s decision.”
The former hedge-fund manager recently called in two loans from former business associates worth about £13.5 million (Dh48m) to fund ongoing legal expenses.
The London High Court recently ruled the money was exempt from the worldwide freezing order currently locked-in on other global assets.
Allegations against Mr Shah claim he was central to a scheme used across Europe to exploit tax refunds on share dividends.
Investigations are under way against other traders using similar methods in Berlin and Frankfurt.
The alleged fraud has also hit Italy and France with up to 100 traders facing potential charges. Under Danish law, companies withhold 27 per cent of share dividends to pay as tax, but foreign investors are eligible for a refund.
Mr Shah, and others, were paid fees and a share of profits from huge refunds made by his clients on specialised stock trades, named Cum-Ex, between 2012-2015.
Things began to unravel in 2015 when Danish authorities claimed they had incorrectly paid out the refunds on 'sham transactions’.
Mr Shah’s hedge fund, Solo Capital Partners was shut down in 2016 before a civil litigation against him began in 2018.
A luxury row of terraced houses near Hyde Park in London estimated to be worth around £14.7m (Dh70m) was frozen by the Danish state prosecutor as the net tightened around his wealth.
While he is unable to sell or transfer ownership of property to raise legal funds, he can earn from any rental income. That has dried up due to the pandemic.
The evidence against me is circumstantial and SKAT has found nothing in my emails that proves wrong-doing
Mr Shah’s lawyers responded by stating foreign governments should not be able to pursue funds for tax purposes in other jurisdictions.
A banking career working with Credit Suisse, Morgan Stanley and Rabobank in Holland honed the money making method, before setting up his own fund in 2009 in the wake of the global economic crash.
“The people I was working with copied my model, so there were many others doing the same as me,” said Mr Shah, who lives with his wife and three children on The Palm.
“I was making tens of millions of pounds for my employer, and yes I was getting paid a lot of money in bonuses, but It was a fraction by comparison.
“The idea was to do my own thing and run a profit share within my family offices.”
He is now unable to travel due to fears he would be arrested and placed in pre-trial detention ahead of a UK court case due in 2021.
“After Brexit, there is a possibility I could fly back to the UK to see my family, but we don’t know yet what agreements the UK and EU will sign up to that may prevent me doing that safely,” he said.
“My lawyers have recommended that I do not fly anywhere.
“The evidence against me is circumstantial and SKAT has found nothing in my emails that proves wrong-doing. I have an explanation for it all.”
Read More
Dubai millionaire Sanjay Shah returns to UK court in fight to pay legal fees
Autism Rocks Support Centre closes amid tax fraud probe
A lengthy legal battle in the British Courts could last a year with fees on both sides likely to top £250 million (Dh1.2bn).
His lawyers offered a deal to pay back half of the money claimed by Denmark in exchange for no further action against him.
That was rejected leading to an expensive legal dispute in what could be one of the largest commercial litigation cases heard in Britain.
A one-week London trial will commence proceedings on March 22, followed by a further hearing in October 2021, but the main year-long trial will not begin until 2023 at the earliest.
The pursuit of Mr Shah is expected to cost SKAT more than £100 million in legal costs with specialist commercial lawyers called in at a weekly cost of £500,000.
Mr Shah has now set his sights on re-opening the Autism Rocks Support Centre.
The businessman used contacts in the music industry to bring some of the biggest names to Dubai, including Prince, Elton John and Ed Sheeran, to perform at the former Autism Rocks Arena on the Al Ain Road near Academic City.
“I want to re-open the autism clinic, but I need liquidity to be able to do that and I have tons of money sat in a bank account but it is not benefiting me or anyone else,” he said.
“All of the people I have done business with in the past in the music industry have been asking when I am back and when we can work together on something.
“With so many people out of work, I would be in a position to take over failing businesses and employ staff.
“I only hope now that I will be able to do this soon.”
Match info:
Portugal 1
Ronaldo (4')
Morocco 0
Chatham House Rule
A mark of Chatham House’s influence 100 years on since its founding, was Moscow’s formal declaration last month that it was an “undesirable
organisation”.
The depth of knowledge and academics that it drew on
following the Ukraine invasion had broadcast Mr Putin’s chicanery.
The institute is more used to accommodating world leaders,
with Nelson Mandela, Margaret Thatcher among those helping it provide
authoritative commentary on world events.
Chatham House was formally founded as the Royal Institute of
International Affairs following the peace conferences of World War One. Its
founder, Lionel Curtis, wanted a more scientific examination of international affairs
with a transparent exchange of information and ideas.
That arena of debate and analysis was enhanced by the “Chatham
House Rule” states that the contents of any meeting can be discussed outside Chatham
House but no mention can be made identifying individuals who commented.
This has enabled some candid exchanges on difficult subjects
allowing a greater degree of free speech from high-ranking figures.
These meetings are highly valued, so much so that
ambassadors reported them in secret diplomatic cables that – when they were
revealed in the Wikileaks reporting – were thus found to have broken the rule. However,
most speeches are held on the record.
Its research and debate has offered fresh ideas to
policymakers enabling them to more coherently address troubling issues from climate
change to health and food security.
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How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
COMPANY PROFILE
Name: Mamo Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua Based: Dubai, UAE Number of employees: 28 Sector: Financial services Investment: $9.5m Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
Results
4.30pm Jebel Jais – Maiden (PA) Dh60,000 (Turf) 1,000m; Winner: MM Al Balqaa, Bernardo Pinheiro (jockey), Qaiss Aboud (trainer)
5pm: Jabel Faya – Maiden (PA) Dh60,000 (T) 1,000m; Winner: AF Rasam, Tadhg O’Shea, Ernst Oertel
5.30pm: Al Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel
6pm: The President’s Cup Prep – Conditions (PA) Dh100,000 (T) 2,200m; Winner: Mujeeb, Richard Mullen, Salem Al Ketbi
6.30pm: Abu Dhabi Equestrian Club – Prestige (PA) Dh125,000 (T) 1,600m; Winner: Jawal Al Reef, Antonio Fresu, Abubakar Daud
7pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m; Winner: Ashton Tourettes, Pat Dobbs, Ibrahim Aseel
7.30pm: Jebel Hafeet – Maiden (TB) Dh80,000 (T) 1,400m; Winner: Nibraas, Richard Mullen, Nicholas Bachalard
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Common OCD symptoms and how they manifest
Checking: the obsession or thoughts focus on some harm coming from things not being as they should, which usually centre around the theme of safety. For example, the obsession is “the building will burn down”, therefore the compulsion is checking that the oven is switched off.
Contamination: the obsession is focused on the presence of germs, dirt or harmful bacteria and how this will impact the person and/or their loved ones. For example, the obsession is “the floor is dirty; me and my family will get sick and die”, the compulsion is repetitive cleaning.
Orderliness: the obsession is a fear of sitting with uncomfortable feelings, or to prevent harm coming to oneself or others. Objectively there appears to be no logical link between the obsession and compulsion. For example,” I won’t feel right if the jars aren’t lined up” or “harm will come to my family if I don’t line up all the jars”, so the compulsion is therefore lining up the jars.
Intrusive thoughts: the intrusive thought is usually highly distressing and repetitive. Common examples may include thoughts of perpetrating violence towards others, harming others, or questions over one’s character or deeds, usually in conflict with the person’s true values. An example would be: “I think I might hurt my family”, which in turn leads to the compulsion of avoiding social gatherings.
Hoarding: the intrusive thought is the overvaluing of objects or possessions, while the compulsion is stashing or hoarding these items and refusing to let them go. For example, “this newspaper may come in useful one day”, therefore, the compulsion is hoarding newspapers instead of discarding them the next day.
Source: Dr Robert Chandler, clinical psychologist at Lighthouse Arabia
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
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Results
6.30pm: Maiden Dh165,000 (Dirt) 1,400m. Winner: Rio Angie, Pat Dobbs (jockey), Doug Watson (trainer).
7.05pm: Handicap Dh170,000 (D) 1,600m. Winner: Trenchard, Pat Dobbs, Doug Watson.
7.40pm: Maiden Dh165,000 (D) 1,600m. Winner: Mulfit, Pat Dobbs, Doug Watson.
8.15pm: Handicap Dh210,000 (D) 1,200m. Winner: Waady, Dane O’Neill, Doug Watson.
8.50pm: Handicap Dh210,000 (D) 2,000m. Winner: Tried And True, Pat Dobbs, Doug Watson.
9.25pm:Handicap Dh185,000 (D) 1,400m. Winner: Midnight Sands, Pat Dobbs, Doug Watson.
'Munich: The Edge of War'
Director: Christian Schwochow
Starring: George MacKay, Jannis Niewohner, Jeremy Irons
Rating: 3/5
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
