EU recommends Member State not to grant state-aid to companies linked to tax-havens

epa08411306 An European Union flag, rised in front of National Theater to mark EU day, is seen against the sun in Bucharest, Romania, 08 May 2020 (issued 09 May 2020). Europe Day, also known as Schuman Day from the date of the Schuman Declaration, is held on 9 May every year, celebrating peace and unity in Europe. Each year, the EU institutions in Brussels open their doors to the public for celebrations. Due to the Coronavirus pandemic crisis, there will be no open doors events in Brussels to celebrate Europe Day in 2020. EPA-EFE/ROBERT GHEMENT

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The European Commission has today recommended that Member States do not grant financial support to companies with links to countries that are on the EU’s list of non-cooperative tax jurisdictions.

Restrictions should also apply to companies that have been convicted of serious financial crimes, including, among others, financial fraud, corruption, non-payment of tax and social security obligations.

The aim of today’s 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. By coordinating restrictions on financial support, Member States would also prevent mismatches and distortions within the Single Market.

European Commission 

 

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