European countries praised for refusing to bail out companies registered in offshore tax havens
- Credit: PA
Denmark and Poland have been praised for refusing to let companies registered in offshore tax havens access economic support during the coronavirus.
Polish prime minister Mateusz Morawiecki has previously said that companies wishing to receive financial support from the government must pay domestic business taxes.
'Let's end tax havens, which are the bane of modern economies,' he said.
The Danish finance ministry has also extended its bailout program into July - but would no longer cover firms based in tax havens.
It said: 'Companies seeking compensation after the extension of the schemes must pay the tax to which they are liable under international agreements and national rules.
You may also want to watch:
'Companies based on tax havens in accordance with EU guidelines cannot receive compensation, insofar as it is possible to cut them off under EU law and any other international obligations.'
A spokesperson for the Treasury admitted its bailout scheme will involve foreign companies, but said it is designed to support British jobs.
- 1 These are the 322 Tory MPs who voted against extending free school meals to children
- 2 Betty Boothroyd delivers scathing assessment of Boris Johnson's government
- 3 Priti Patel set to hand private firms £28 million in government contracts to deport asylum seekers from UK
- 4 The harsh truths learned from halt in Brexit talks
- 5 Question Time: Ex-Tory minister accused of making 'sickening' comment about free schools meals row
- 6 Downing Street withholds praise for business and local authorities offering free meals to hungry children
- 7 At the upcoming US election, Donald Trump really is toast
- 8 Boris Johnson 'plans to resign' in six months because he can't live on £150k salary
- 9 Priti Patel bullying inquiry may never be released, hints Boris Johnson's new civil service boss
- 10 German MEP tells Boris Johnson he 'owes' Britons a Brexit deal as she urged a return to EU trade talks
They told Business Insider: 'Obviously we've set up schemes at pace, and they are designed to support jobs in Britain.'
'Sometimes that will involve foreign companies who employ people in the UK for example. But we are looking into the specific point on tax havens where as you know we have already taken considerable action.'
Robert Palmer, an executive director at Tax Justice UK, said that businesses using offshore tax havens should not expect support from government.
He said: 'Companies that seek to dodge their obligations to broader society by cutting their tax bills shouldn't expect to get bailed out when things go wrong.
'The UK government should seriously look at copying Denmark's approach. Any bailout needs to come with conditions to ensure good business behaviour.'
'All credit to Denmark and Poland who are refusing to let companies registered in offshore tax havens access financial aid from their #coronavirus bailout packages,' tweeted James Melville.
'Time for all the big boys to do the same,' said another.
'This should be standard practice. Why bail out offshored business that have evaded taxes for years?' asked Alexandra Kleeman.
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.