Denmark has increased its business aid package: 53 billion euros are now available to support businesses during the coronavirus crisis. However, Denmark will not support companies that practice tax evasion.
According to the news agency Bloomberg, the Danish government has agreed to extend its business aid programmes for companies and workers by one month, until July 8.
Alongside extending the duration of the aid provision, additional measures have been included in the program, such as state guaranteed zero-interest loans and extended deadlines for tax payment.
Coronavirus in Denmark: No business aid for tax evasion
The aid measures amount to a total of 400 billion kroner (i.e. approximately 53 billion euros). However, companies that practice tax evasion or act against the interest of the rest of society will be excluded from the aid programs.
The government has stated that companies which are registered in tax havens, pay out dividends to their investors, and buy back their own shares will not receive aid. Through these measures, Social Democratic Prime Minister Mette Frederiksen wants to exclude tax evaders from receiving aid.
Denmark is not the only country to cut tax evading companies off from state aid during the pandemic. As reported by Business Insider earlier this month, Poland introduced similar measures when the Prime Minister announced that their “bailout fund” would only be available to companies paying domestic taxes.