The Eastern High Court ruling in the first "beneficial owner" case stands final

The Danish Ministry of Taxation has today published its decision not to bring the 20 December 2011 ruling by the Eastern High Court, whereby a claim for dividend withholding tax in the amount of DKK 1.6 billion against ISS was dismissed, before the Supreme Court

As previously referred to the Eastern High Court rendered the first court ruling in the so-called "beneficial owner" cases on 20 December 2011.

The Eastern High Court ruled in favour of FS Invest II S.á r.l., Luxembourg. A team of Plesner attorneys headed by Hans Severin Hansen acted as counsel to FS Invest II S.á r.l.

Today the Danish Ministry of Taxation has published its decision not to bring the High Court ruling before the Supreme Court.

In its December 2011 ruling the Eastern High Court stated as a general premise that a foreign recipient of dividend payments from Denmark cannot be denied status as "beneficial owner" of such payments in case the funds are not channelled through the foreign recipient to a final recipient in a non-treaty jurisdiction.

It is this premise that the Ministry of Taxation has now accepted as final.

However, the Ministry of Taxation has also emphasized that the case against FS Invest II S.á r.l. - according to the Ministry - is unique among the "beneficial owner" cases in that no funds were channelled through the intermediate holding company and that the Ministry expects to continue the proceedings in the cases raised against other tax payers.

For further information about this case please contact Attorney-at-Law Hans Severin Hansen