UAE rejects extradition of Sanjay Shah in billion dollar tax fraud case

Dubai  — A United Arab Emirates (UAE) judge on Monday rejected the extradition to Denmark of Briton Sanjay Shah, the main suspect in a Danish dividend tax fraud case, a lawyer representing Shah said.

Danish authorities had requested the extradition of Shah, who was arrested in Dubai in June, for prosecution over his alleged involvement in a sham trading scheme to make double tax reclaims — known as “cum-ex” trading.

He is suspected of running a scheme that involved submitting applications to the Danish Treasury on behalf of investors and companies from around the world for dividend tax refunds worth more than 9-billion Danish kroner ($1.23bn).

Reuters was not immediately able to reach Shah’s spokesperson for a comment. He has previously denied any wrongdoing.

“I understand that today’s decision in the extradition case is not final and that the prosecution in the UAE has the opportunity to appeal the decision,” Denmark’s justice minister Mattias Tesfaye said.

“I hope that the Emirati prosecutor’s office will make use of this opportunity,” Tesfaye said, adding that Danish authorities would initiate talks with the Emirati prosecution authority.

It was not immediately clear why the extradition was rejected, but Danish broadcaster TV 2, citing court documents, reported Danish authorities had not filed all the necessary documents needed.

“We are now investigating what is behind the rejection and whether mistakes have been made, which must be rectified if necessary,” Tesfaye said.

The public prosecution can appeal the decision within 30 days, Shah’s lawyer Ali Al Zarooni said. There was no immediate comment by UAE authorities.

Reuters