Deny financial support to companies with links to tax havens: EU Commission

On July 14, 2020, the European Commission recommended member states to not grant financial support to companies with links to countries that are on the EU's list of non-cooperative tax jurisdictions.

The aim of the recommendation is to provide guidance to member states on how to set conditions to financial support that prevent the misuse of public funds and to strengthen safeguards against tax abuse throughout the EU, in line with EU laws.

Should member states decide to introduce such provisions in their national legislation, the Commission suggested a number of conditions on which they should make the financial support contingent. The EU list of non-cooperative tax jurisdictions is the best basis to apply such restrictions, as it will enable all member states to act consistently and will avoid individual measures that may violate EU law, the Commission noted.

See Press Release