Danish pension giant ATP is now facing a significant financial burden, owing over 90 million kroner to the Danish treasury following a landmark ruling by the Eastern High Court. The case stems from a dividend tax dispute linked to a past ownership stake in Copenhagen Airport, an investment that has drawn significant scrutiny and raised uncomfortable questions about foreign tax practices.
A Troubling Past and Present
In 2017, ATP made headlines when it acquired a substantial share in Copenhagen Airports, joining a group of investors that included the controversial Australian investment bank Macquarie. The deal marked the end of Macquarie’s involvement with the airport, which had spanned over 12 years. At the time, Lars Nørby Johansen, Chairman of the Board at Copenhagen Airports, publicly expressed gratitude for Macquarie’s partnership:
“I would like to take this opportunity to thank Macquarie for the good and successful collaboration over the past many years,” he said.
However, the past would soon come back to haunt both the airport and ATP. After the deal, investigative journalism revealed that Macquarie had played a pivotal role in a tax fraud scheme that allegedly defrauded European treasuries of an estimated 410 billion kroner through dividend tax avoidance. Despite Macquarie’s exit, its legacy continues to affect the Danish pension fund, which now faces the repercussions of these past actions.
The Tax Case Unfolds
The tax case has its roots in transactions long before ATP entered the picture. In the mid-2000s, Macquarie, a major shareholder in Copenhagen Airports Denmark Holdings ApS (CADH), received dividend payments totalling more than 700 million kroner over three separate distributions. These dividends were funnelled through a series of companies based in Denmark and Luxembourg, ultimately reaching Bermuda, a well-known tax haven. This structure allowed Macquarie to avoid paying the standard Danish dividend tax of 25-28%.
The Danish Ministry of Taxation, however, contends that these transactions were part of a deliberate strategy to evade taxes. The Ministry claims the Danish and Luxembourg-based companies were mere “empty shells” — entities set up purely to route the funds through tax havens and skirt Danish taxation. The Eastern High Court agreed with this assessment, ruling that the primary purpose of the scheme was to avoid paying Danish taxes on the dividends.
The judgment from the Eastern High Court, handed down on Monday, determined that Copenhagen Airports Denmark Holdings ApS owes the Danish treasury a total of 187 million kroner in unpaid taxes, plus interest. Of this amount, ATP, as a major stakeholder in the company, is now liable for nearly half — approximately 90 million kroner.
The Stakes for ATP and the Canadian Pension Fund
ATP, which now owns nearly 50% of CADH, and its co-investor, Ontario Teachers’ Pension Plan (OTPP), are both implicated in the tax liability. While ATP has acknowledged its responsibility for a portion of the debt, the pension fund maintains that it conducted a thorough risk assessment before acquiring Macquarie’s stake in 2017.
In a written statement, ATP clarified its position:
“When ATP entered into negotiations with Macquarie regarding a possible purchase of their ownership stake, the pending tax cases were considered as part of the broader risk assessment undertaken prior to finalizing the investment.”
ATP has confirmed that its financial exposure is proportional to its ownership share in CADH, meaning it will be responsible for around 90 million kroner of the tax debt, in addition to approximately 1.5 million kroner in legal costs. However, the exact total amount owed could increase significantly when interest on the debt is factored in, although this has not been disclosed.
The ruling has raised questions about the due diligence conducted by ATP prior to its purchase of Macquarie’s shares. While ATP has not yet indicated whether it will appeal the decision to the Supreme Court, the pension fund has stated that it will review the judgment carefully before making any further decisions.
The Ghost of Macquarie
Despite Macquarie’s departure from the airport’s ownership group, the Australian investment bank remains entangled in the fallout from this scandal. While ATP is now legally responsible for the tax bill, Macquarie appears to have largely escaped liability, as the current owners of the company are the ones held accountable for the unpaid taxes.
DR News reached out to Macquarie for comment on the case, specifically regarding whether the bank agreed with the High Court’s finding that 187 million kroner in dividend taxes should have been paid. In response, Macquarie declined to comment, stating that it was not a party to the ongoing case.
Implications for ATP and the Broader Investment Landscape
The tax case has broader implications for ATP’s reputation and its role as a steward of Danish pension funds. With over 90 million kroner at stake, the fund’s financial position is now under greater scrutiny. More importantly, the case raises critical questions about the responsibility of large institutional investors when it comes to ensuring the legality and ethics of their investments. ATP’s involvement in the airport deal has now become an example of how even well-meaning investors can become entangled in the complex world of international tax avoidance schemes.
While ATP has stressed that it conducted a “risk assessment” before making its investment, the case highlights the risks involved in large-scale acquisitions of foreign assets. Given the scale of the financial commitment, a thorough understanding of potential legal challenges — such as the tax liabilities tied to previous ownership structures — is essential for investors looking to avoid similar pitfalls.
What Happens Next?
ATP and OTPP now have four weeks to decide whether they will appeal the court’s ruling to the Supreme Court. The decision could have significant consequences for the Danish pension giant, both financially and reputationally. While the immediate impact is clear, the longer-term ramifications for the pension fund’s investment strategy and governance practices remain to be seen.
As for Macquarie, the investment bank continues to distance itself from the controversy, despite its central role in orchestrating the tax avoidance scheme. For now, the “vampire kangaroo,” as it has been dubbed in the Danish press, may have left Copenhagen Airport, but its shadow still looms large over both ATP and the broader investment community.