Laundered proceeds from an alleged massive international tax fraud are held in accounts at a bank in the Isle of Man, a court has heard.

Details emerged in a high court judgment handed down by Deemster Andrew Corlett in which he dismissed an application to lift a freezing order imposed last year on the accounts held in the name of Worldwide Asset Management Ltd at Standard Bank Isle of Man.

It is alleged that the Danish Customs and Tax Administration has been the subject of international fraud, with substantial funds held in accounts in the name of the defendant at Standard Bank said to be the laundered proceeds of that fraud.

Proceedings have been issued in multiple jurisdictions, including England and Wales, Dubai and the USA. There are no fewer than 89 defendants in the proceedings in England and Wales.

The Danish tax authority claims it was induced to pay out money on the false basis that it was due by way of refunds of dividend withholding tax between 2012 and 2015.

Payments were made to pension funds and companies which purported to own shares in Danish companies.

The amount involved is said to be around US$2bn.

Another alleged fraud, involving the same modus operandi but different people, was the subject of the proceedings in the Douglas high court.

It is alleged that a group of US pension funds, clients of North Channel Bank, Germany (NCB) and of Lindisfarne Partners LLP in the UK, paid WWAM a fee from their accounts relating to applications for the refund of Danish withholding tax, which it is said were fraudulent because the pension funds did not in fact receive any dividends.

The Deemster acknowledged that none of the allegations against WWAM are proven.

Applying for the freezing order to be discharged, WWAM’s lawyer argued that although the application is framed as one with a background of a global fraud, the claim in Dubai is referred to as one of unjust enrichment. She said the claim was time-barred according to the laws of Dubai.

In a witness statement, Dubai resident Syed Mohammed Adnan Haider, a director and joint beneficial owner of WWAM, said the merits of the claims are disputed.

The solicitor who is acting for Danish Customs and Tax Administration insisted the applicant had a good arguable case to retain the freezing order and there was a real risk of dissipation of funds.

Dismissing the application to discharge the freezing order, Deemster Corlett concluded that it remained ‘just and convenient’ for the drastic remedy of a freezing order to be granted.

‘The prejudice likely to arise to the applicant if the without notice order is discharged is substantial and outweighs any prejudice to the respondent, he said.