Following bans from Denmark, Poland and Argentina on companies registered in tax havens from receiving #COVID19 bailouts, we've published a "bail or bailout" test to clarify uncertainty on how govt's can determine which companies are discreetly using tax havens to pay less tax.

The 5-step test is designed to prevent tax payer’s money from ending up in corporate tax havens and to ensure tax transparency from bailout recipients into the future. In a nutshell, it means making sure we don’t rebuild our economies on top of a tax haven trap door.

1- Does the corporate group have one or more subsidiaries in one of the top 10 ranking jurisdictions on the Financial Secrecy Index or the Corporate Tax Haven Index?

If so, the corporate group must publish full country by country reporting by the end of 2020 to demonstrate presence in the jurisdiction is for legitimate business activity - not for reducing tax dues elsewhere. Otherwise, the corporate group should be disqualified from bailouts.

2- Has the corporate group participated in any financial scandals or tax scandals such as the #LuxLeaks, #CumEx or been judged to have received illegal state aid?

If so, the corporate group should be disqualified from receiving a bailout.

3- Has the corporate group published online most recent accounts for all legal entities in the group, including country by country reporting?

If not, govt's must make it a condition for bailout recipients to do so by end of 2020. Money should be returned if deadline not met.

4- Has the corporate group published info on who the beneficial owners and legal owners are of all its legal vehicles and corporate structure?

If not, govt's must make it a condition for bailout recipients to do so by end of 2020. Money should be returned if deadline not met.

5- Has the corporate group committed to employee protection and to no shareholder extraction until rescue loans have been paid back in full and corporate group has returned to profitability or become insolvent?

If not, the group should be disqualified from receiving a bailout.

These 5-rules for #Covid19 business bailouts will help governments make sure taxes go towards protecting people’s jobs and wellbeing instead of rewarding tax abusers with retreats to luxury resorts.

Full report here: https://www.taxjustice.net/2020/04/23/bail-or-bailout-tax-experts-publish-5-step-test-for-covid19-business-bailouts/