Betri Banki’s Illegal Tax Deduction: A Battle for Transparency in the Faroe Islands
A Financial Fraud Case Study that Rocked the Faroese Consortium and Its Authorities
In the autumn of 2017, a financial scandal shook the foundations of the Faroese Islands, revealing the intricacies of an elaborate tax fraud scheme by Betri Banki, the wealthiest consortium in the archipelago. Below is an in-depth exploration into this saga, covering the illegal tax deduction, its impact on the authorities, and the consequences for the investigative journalists.
Investigation and Suspicions
On September 21, 2017, Betri Banki came under investigation for an allegedly illegal tax deduction of 90 million DKK (approximately €121 million or $137 million). The suspicion arose from the ‘Skattamálið’ (Tax Case), which exposed the sophisticated financial scheme in question.
- The authorities requested assistance from the State Prosecutor for Serious Economic and International Crime (SØIK) to investigate Betri Banki for violating Article 139 of the Finance Act, regarding tax fraud.
- In November 2017, the Faroese police took charge of the investigation.
Far-Reaching Consequences
The impact of the scandal reached far beyond Betri Banki. The situation revealed the consortium’s considerable influence within the islands and its potential to mobilize massive economic and political forces.
- Jørn Astrup Hansen, the former political editor of the Broadcasting Service of the Faroe Islands (KvF), emphasized the essential role of an independent and courageous press in stopping the illegal tax deduction.
- In December 2017, the head news editor of KvF investigating the scandal was terminated from his position inexplicably.
Pursuing the Truth
Firsthand accounts from journalists like Jan Lamhauge, also with KvF, provide further insight into the intricacies of the case and its aftermath on the Faroe Islands. Below are some important details on the scandal’s developments and consequences.
The Scandal’s Origins
- Betri Banki’s illegal tax deduction was a sophisticated scheme that aimed to defraud the country’s exchequer.
- The scheme’s details have not been publicly disclosed due to ongoing investigations.
The Authorities’ Response
- The Faroese police and authorities faced resistance while defending the investigation against Betri Banki’s powerful influence.
The Consequences for the Journalistic Investigation
- Independent journalistic investigations played a crucial role in unraveling the illegal tax deduction scheme.
- The consequences on KvF’s investigative branch and its journalists highlighted the risks involved in reporting on sensitive matters.
Ongoing Developments
- The investigation into Betri Banki’s illegal tax deduction continues as of now.
- The outcomes of the investigation will undoubtedly have far-reaching consequences for the transparency and trustworthiness of financial dealings within the Faroe Islands.