Scotland joins Wales to ban Covid-19 support to firms based in tax havens

Registered in a tax haven? Then no tax-funded help for you: there’s no reason the UK should give tax-dodging firms a hand during the coronavirus crisis if they haven’t paid their full dues. Wales and Scotland have made this clear; let’s see Westminster do the same.

Quite right too. If you’ve opted out of paying tax when the going was easy, then you can’t try to get help from the taxpayer in hard times.

Has the Tory government in Westminster made this decision yet?

The Scottish parliament has voted to block companies based in tax havens from using millions of pounds in coronavirus relief funding, in emergency legislation.

MSPs approved measures on Wednesday night brokered by the Scottish Greens to prohibit firms or individuals who are registered in tax havens, or are a subsidiary of an offshore company, from getting support grants.

The vote follows similar decisions by the Welsh government last week and by other EU member states, including Denmark and France, but ministers have yet to say how much Scottish government spending will be affected or how it will be enforced.

It is thought it could prevent companies with offshore links from applying to a new £120m enterprise resilience fund that provides grants for small- and medium-sized firms, and a £30m creative, tourism and hospitality bailout fund for firms that cannot get business rates relief.

The Welsh government blocked companies with headquarters in a tax haven from accessing its £500m economic resilience fund on 15 May. Ministers in Cardiff said last week it would affect a small number of companies.

Source: Scotland bans Covid-19 support to firms based in tax havens | Politics | The Guardian

2 thoughts on “Scotland joins Wales to ban Covid-19 support to firms based in tax havens

  1. Carol Fraser

    Quite right to. Corporate is out of control. How come so many companies have insufficient reserves to last for a few months?

  2. Dez

    Good plan of persuasion however the shy off shore tax avoiders will threaten to go elsewhere and take the jobs and real taxpaying employees with them.

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