{"id":49090,"date":"2020-04-21T07:21:58","date_gmt":"2020-04-21T06:21:58","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=49090"},"modified":"2020-04-20T22:41:19","modified_gmt":"2020-04-20T21:41:19","slug":"question-of-the-day-should-we-bail-out-companies-that-use-tax-havens","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2020\/04\/21\/question-of-the-day-should-we-bail-out-companies-that-use-tax-havens\/","title":{"rendered":"Question of the day: should we bail out companies that use tax havens?"},"content":{"rendered":"<p>As was noted in <a href=\"https:\/\/www.businessinsider.com\/coronavirus-companies-tax-havens-banned-denmark-poland-bailout-2020-4?r=US&amp;IR=T\" target=\"_blank\" rel=\"noopener\">some media yesterday<\/a>:<\/p>\n<blockquote><p>Denmark and Poland are refusing to let companies registered in\u00a0<a href=\"https:\/\/www.businessinsider.com\/jake-bernstein-panama-papers-offshore-banking-shell-companies-2018-2\" data-analytics-module=\"body_link\" data-analytics-post-depth=\"20\">offshore tax havens<\/a>\u00a0access financial aid from their\u00a0<a href=\"https:\/\/www.businessinsider.com\/coronavirus-live-updates-latest-news?r=US&amp;IR=T\" data-analytics-module=\"body_link\" data-analytics-post-depth=\"20\">coronavirus<\/a>\u00a0bailout packages.<\/p>\n<p>The Danish finance ministry on Saturday\u00a0<a href=\"https:\/\/www.fm.dk\/nyheder\/pressemeddelelser\/2020\/04\/regeringen-og-alle-folketingets-partier-er-enige-om-at-justere-og-udvide-hjaelpepakker-til-dansk-oekonomi\" data-analytics-module=\"body_link\" data-analytics-post-depth=\"20\">extended its bailout program into July<\/a>\u00a0but stressed that firms based in tax havens would no longer be covered.<\/p>\n<p>\"Companies seeking compensation after the extension of the schemes must pay the tax to which they are liable under international agreements and national rules,\" a translation of the statement said.<\/p><\/blockquote>\n<p>Many would seem to agree that this is fair.<\/p>\n<p>The situation is contrasted with that of the UK where <a href=\"https:\/\/www.bbc.co.uk\/news\/business-52354865\" target=\"_blank\" rel=\"noopener\">Richard Branson continues to seek financial support<\/a> for his airline, with its British Virgin Island links.<\/p>\n<p>I have made it clear that I think it is reasonable for the government to apply conditions to the bailout funding it supplies including:<\/p>\n<ul>\n<li>An end to tax haven links;<\/li>\n<li>Publishing country-by-country reporting for tax;<\/li>\n<li>Better tax governance to end use of any known tax avoidance mechanisms;<\/li>\n<li>Adopting better environmental standards;<\/li>\n<li>Setting net-zero carbon targets;<\/li>\n<li>Recognising unions;<\/li>\n<li>Tackling gender pay inequality;<\/li>\n<li>Paying real living wages.<\/li>\n<\/ul>\n<p>I think society has a right to expect a return that is more than just financial from the support it supplies.<\/p>\n<p>What do others think?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As was noted in some media yesterday: Denmark and Poland are refusing to let companies registered in\u00a0offshore tax havens\u00a0access financial aid from their\u00a0coronavirus\u00a0bailout packages. The<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2020\/04\/21\/question-of-the-day-should-we-bail-out-companies-that-use-tax-havens\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,181,79,35,108,10,32,97],"tags":[],"class_list":["post-49090","post","type-post","status-publish","format-standard","hentry","category-accounting","category-coronavirus","category-country-by-country","category-economics","category-environment","category-tax-avoidance","category-tax-havens","category-tax-justice"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/49090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=49090"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/49090\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=49090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=49090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=49090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}