Thread by @alexcobham

Here they are: Tax-responsible rules for Corona Bailouts
taxjustice.net/2020/04/23/bai… via @taxjusticenet

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

If yes - bailout may still be possible but only with full transparency via public country by country reporting

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

If yes - it's bye bye bailout. This is a company that has shown its attitude to public funds all too clearly.

3. Has the corporate group published online its most recent accounts for all legal entities in the group, including full country by country reporting in line with the Global Reporting Initiative’s standard?

If no, get with the programme - or any bailouts should be returned.

4. Has the corporate group published information on who the beneficial owners and legal owners are of all its legal vehicles, and the complete corporate structure of the group?

If no, get with the programme - or any bailouts should be returned.

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, it's bye bye bailout. Why would the public fund you to fail?

Public bailouts to business are a central element of limiting the non-medical human and economic impacts of the pandemic. They represent major commitments of taxpayer funds; quite exceptional state interventions, in these exceptional times. 3 key reasons for stringent conditions:

First, the bailout must be effective. Companies receiving public funds must meet high standards of behaviour in terms of their use of funds to protect employment, with full labour rights protections. This also bars the use of funds to
reward shareholders or executives in any way.

Second, the bailout must be fully supported by the public, whose funds are being used. This means that a high degree of transparency is necessary, both of the ownership structure of recipients and of their tax behaviour, to facilitate full public scrutiny and accountability.

And third, bailouts should play an important role in ensuring that countries can 'build back better'. These exceptional interventions should not prop up markets marred by behaviours and characteristics that curb public benefits, and
instead ensure private capture of value.

Bailouts should militate against market concentration, weak competition, feeble regulation and abusive tax practices; and in favour of cleaner, less extractive, more competitive and tax-compliant markets in the post-pandemic future, rather than protecting a damaging status quo.

With this, policymakers can meet our tests for a tax-responsible #COVID19 bailout - and set the path for stronger markets and societies after the pandemic. taxjustice.net/2020/04/23/bai…