The IRS has been granted the opportunity to bring a series of trial cases against a number of ringleaders in the dividend tax case to find out whether the cases can be brought before a US court.
It writes Politiken.
According to the newspaper, there is a law in the United States that says U.S. courts may not be used to recover other countries’ taxes.
Therefore, the Danish Tax Agency must prove that the case of dividend tax is not about taxes, but about fraud.
The people behind the dividend fraud exploited a gap in the Danish system. They reported forged papers, which had to document that they had paid tax on a share dividend.
However, the shares did not exist at all, and therefore the backers were not entitled to a refund of the tax on the dividend – because the tax had never been paid.
The IRS is now trying to prove to a U.S. court that the shares never existed.
According to Politiken, the judge of the case – Lewis A. Kaplan – has previously stated that the Danish Tax Agency can be allowed to complete the case in the US court if it can prove that there were no real shares involved in the case.
Source: The Nordic Page