Tax havens: there’s a chance now to apply conditions to bailouts
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Atul K. Shah, City, University of London
The huge economic slowdown brought about by COVID-19 has resulted in companies around the world seeking help from their governments. The conditions of these bailouts vary but some countries have notably said that tax avoiders should not benefit. Poland and Denmark were the first, with Austria, France and Italy making similar noises.
Companies that avoid paying tax argue that they operate within the law and do not breach any rules. This may be true. But the outcomes for government purses have been dire. One piece of research found 40% of all corporate tax revenues are parked in tax havens, leading to a tax loss for global society of US$700 billion in 2017 alone.
How can a company that has avoided giving back to the society in which it operates and paying into crucial services now expect to be bailed out?
Good corporate citizenship invo...
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