A Danish court has sentenced a British citizen to six years in prison in connection with a sham trading case, where he was charged with defrauding Danish tax authorities of over 320 million

Danish crowns ($46.7 million) through a scheme to make double tax reclaims. The court's decision was announced on Friday.

The individual, Guenther Klar, aged 54, had been facing preliminary criminal charges along with two other British citizens and three U.S. citizens in 2021. The charges were related to defrauding tax authorities of more than 1.1 billion crowns. Klar, who had consistently denied any wrongdoing, was extradited from Belgium to Denmark in June of the previous year.

The broader context of these charges is linked to the "cum-ex" trading scheme, which the Danish state claims resulted in a loss of more than 12.7 billion crowns. The scheme involves complex financial transactions designed to exploit tax loopholes and claim multiple refunds on dividend taxes.

Notably, the main suspect in the case, Briton Sanjay Shah, was extradited to Denmark from Dubai in December. Similar to Klar, Shah also denies any wrongdoing.

The court's ruling reflects ongoing efforts by Danish authorities to address fraudulent activities within financial systems and underscores the severity with which such cases are prosecuted. The "cum-ex" trading scheme has been a focal point in several European countries, including Denmark, as governments aim to combat financial fraud and tax evasion. Photo by ChvhLR10, Wikimedia commons.