France plans to block firms registered in tax havens from accessing the state bailout fund.
"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," the country's finance minister, Bruno Le Maire, told the France Info radio station on Thursday.
Last Saturday, Denmark had enforced a similar measure, following the lead of authorities in Poland in early April.
France has allocated 110 billion euros, or $108 billion, to save its businesses amid the coronavirus crisis.
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France plans to block firms registered in offshore tax havens from claiming aid from its government coronavirus bailout, following similar moves by Denmark and Poland.
Finance Minister Bruno Le Maire announced Thursday that companies either registered in tax havens or controlling subsidiaries in them were ineligible for the 110 billion euro, or $108 billion, rescue package.
"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," Le Maire told the France Info radio station.
"There are rules that must be followed. If you have benefited from the state treasury, you cannot pay dividends and you cannot buy back shares," he said.
"And if your head office is located in a tax haven, it is obvious that you cannot benefit from public support."
A TV screen in Paris on March 16 showing French President Emmanuel Macron announcing new measures to fight the spread of the coronavirus. LUDOVIC MARIN/AFP via Getty Images
The announcement follows a request for an amendment to the 2020 finance bill from a group of Centrist Union group senators, led by Nathalie Goulet, on Monday.
The amendment sought to exclude "companies whose subsidiaries or establishments are established in states and non-cooperative territories" from getting aid. The amendment passed Wednesday.
France is the third country to enforce such a measure amid the economic downturn caused by the coronavirus crisis.
On April 8, the prime minister of Poland, Mateusz Morawiecki, said large companies wanting a chunk of his government's roughly $6 billion bailout fund must pay domestic business taxes.
"Let's end tax havens, which are the bane of modern economies," he said.
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.
Of France's 110-billion-euro package, 4 billion euros have been reserved for struggling startups, while 20 billion euros are being kept for larger firms, such as Air France.
Razumes420 on April 23rd, 2020 at 12:38 UTC »
Don't be fooled by this empty announce: Companies in France are not registered in tax heavens otherwise they are not considered as "French companies" The reality is that large French companies do have branches or sister companies abroad (in tax heavens) and through a complex financial montage, they transfer money / profits there in order to not pay tax or pay quite less. However, this cheating strategy called "fiscal optimization", is completely legal and won't be a stop for government to give subsidies to companies doing this. Hell, some french banks who have the French government as shareholder are currently still doing and encouraging this practices. This is pure hypocrisy from Macron government but not surprising as he is a former investment banker (the type of people known in the world for their empathy and general interest over money...) Edit: to illustrate this opinion, here's an article ,(French) from 6 months ago, where the financial administration is complaining that the French government is doing little to nothing to fight or even address, the issue...
Riposte4400 on April 23rd, 2020 at 11:40 UTC »
I think there's a typo in the conversion between euros and dollars in the title, 110 euros is equal to 118.
aegon-the-befuddled on April 23rd, 2020 at 10:32 UTC »
If you don't pay your share, you don't get to be bailed out. Simple as that. I am sure whatever Tax havens they are registered in will bail them out. Also funny how people who call people living on social benefits 'scroungers', 'free-loading bastards' never speak up when its these Corporations getting billions in bail outs.