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There should be no bailouts for tax haven companies

Responding to news that

Denmark and Poland are to exclude companies based in tax havens from coronavirus related relief.

Tax Justice UK Executive Director, Robert Palmer, said: “ The UK should follow Denmark and Poland’s lead and exclude tax haven companies from coronavirus relief.

“Companies that seek to dodge their obligations to society by cutting their tax bills shouldn’t expect a bailout when things go wrong. The UK should ensure that all bailouts come with conditions to ensure good business behaviour.

“After the crisis we need a new deal between business and government to ensure that all companies contribute properly, including by paying their fair share of tax. Bailouts should be accompanied by reassurances for workers on furlough that they’ll still be supported.”

The High Pay Centre has published a briefing note setting out the conditions that could be part of a broader approach to corona related support for businesses.