Poland and Denmark have taken unprecedented steps to exclude companies registered in tax havens from coronavirus relief schemes.
The Danish government announced this weekend that companies which pay out dividends, buy back own shares or are registered in offshore tax jurisdictions won’t be eligible for any of the state aid programmes.
It comes as Poland attached similar caveats to its own bail-out schemes, making PLN 25 billion available to large firms who pay taxes in Poland and not elsewhere.
The moves have been met with sympathy on social media, with many people suggesting other countries such as the UK should follow suit.
Last year groundbreaking research found Britain was by far the biggest enabler of global corporate tax dodging.
Of the top 10 countries allowing multinationals to avoid paying billions in tax on their profits, four are British overseas territories.
An index published by the Tax Justice Network found that the UK has “single-handedly” done the most to break down the global corporate tax system which loses an estimated $500bn (£395bn) to avoidance.
The amount dodged globally each year is more than three times the NHS budget or roughly equivalent to the entire Gross Domestic Product (GDP) of Belgium.
Related: Government support for businesses needs to become ‘faster and simpler’ – BCC
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