French firms registered in offshore tax havens will be barred from claiming aid from the government COVID-19 bailout.
According to France Minister of Finance, Bruno Le Maire in an announcement, on Thursday, companies either registered in tax havens or controlling subsidiaries in them were ineligible for the 110 billion euro, or $108 billion, rescue package.
BUSINESS INSIDER quoted Le Maire as telling France Info radio station that: “It goes without saying that if a company has its tax headquarters or subsidiaries in a tax haven, I want to say with great force, it will not be able to benefit from state financial aid.
“There are rules that must be followed. If you have benefited from the state treasury, you cannot pay dividends and you cannot buy back share.
“And if your head office is located in a tax haven, it is obvious that you cannot benefit from public support.”
France is the third country after Denmark and Poland to enforce such a measure amid the economic downturn caused by the coronavirus crisis.
In France, according to the latest report from the health authorities as for the COVID-19 pandemic, about 119,151 cases have been reported and 21,340 people have died
Poland’s Prime Minister, Mateusz Morawiecki, on April 8th said large companies wanting a chunk of his government’s roughly $6 billion bailout fund must pay domestic business taxes.
He said: “Let’s end tax havens, which are the bane of modern economies.”
Denmark followed suit Saturday. “Companies based on tax havens in accordance with EU guidelines cannot receive compensation,” a statement from the country’s finance ministry said.