Denmark charges six from US, UK over tax fraud scheme

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Updated 13 April 2021
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Denmark charges six from US, UK over tax fraud scheme

  • The Danish state has lost more than 12.7 billion crowns in total
  • The charges against three US and three British citizens are connected to the so-called “cum-ex” trading schemes

COPENHAGEN: Denmark’s state prosecutor said on Tuesday it had charged six people from the United States and Britain with defrauding Danish tax authorities of more than 1.1 billion crowns ($176 million) in a sham trading scheme.

The charges against three US and three British citizens are connected to the so-called “cum-ex” trading schemes, in which the Danish state has lost more than 12.7 billion crowns in total.

In January, Denmark charged two UK citizens, bringing the total number of people charged to eight

They are suspected of running a scheme that involved submitting applications to the Danish Treasury on behalf of investors and companies from around the world to receive dividend tax refunds, the prosecutor said

The six people were charged with running the scheme via Germany’s North Channel Bank in 2014 and 2015, the prosecutor said.

The cum-ex trading scheme is also being investigated by authorities in Germany, Belgium and Britain. Last year, two Britons were convicted in Germany’s biggest fraud trial in at least 75 years.

The name “cum-ex” is Latin for “with-without,” illustrating the apparent vanishing of dividend payments.


Ethiopia accuses Eritrea of arming rebels in escalating war of words

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Ethiopia accuses Eritrea of arming rebels in escalating war of words

  • The charge by Ethiopia’s federal police escalates a feud between Ethiopia and Eritrea
  • The two countries fought a three-year border war that broke out in 1998

ADDIS ABABA: Ethiopian police said they had seized thousands of rounds of ammunition sent by Eritrea to rebels in Ethiopia’s Amhara region, an allegation Eritrea dismissed as a falsehood intended to justify starting a war.
The charge by Ethiopia’s federal police escalates a feud between Ethiopia and Eritrea, longstanding foes who reached a peace deal in 2018 that has since given way to renewed threats and acrimony.
The police said in a statement late on Wednesday they had seized 56,000 rounds of ⁠ammunition and arrested two suspects this week in the Amhara region, where Fano rebels have waged an insurgency since 2023.
“The preliminary investigation conducted on the two suspects who were caught red-handed has confirmed that the ammunition was sent by the Shabiya government,” the statement said, using a term for Eritrea’s ruling party.
Eritrea’s Information Minister Yemane Gebremeskel told Reuters that Ethiopian Prime ⁠Minister Abiy Ahmed’s Prosperity Party (PP) was looking for a pretext to attack.
“The PP regime is floating false flags to justify the war that it has been itching to unleash for two long years,” he said.
In an interview earlier this week with state-run media, Eritrean President Isaias Afwerki said the Prosperity Party had declared war on his country. He said Eritrea did not want war, but added: “We know how to defend our nation.”
The two countries fought a three-year border war that broke out in 1998, five years after Eritrea won its independence from Ethiopia. They ⁠signed a historic agreement to normalize relations in 2018 that won Ethiopia’s Abiy the Nobel Peace Prize the following year. Eritrean troops then fought in support of Ethiopia’s army during a 2020-22 civil war in Ethiopia’s northern Tigray region.
But relations soured after Asmara was frozen out of the peace deal that ended that conflict. Since then, Eritrea has bristled at repeated public declarations by Abiy that landlocked Ethiopia has a right to sea access — comments many in Eritrea, which lies on the Red Sea, view as an implicit threat of military action.
Abiy has said Ethiopia does not seek conflict with Eritrea and wants to address the issue of sea access through dialogue.