Tax Haven-Blocking Rules in Virus Aid Carry Little Force

Coronavirus aid packages in many countries include restrictions designed to block multinationals from sending money to tax havens, but the language may ultimately be too narrow to capture most tax avoidance.

Over the last few months, several countries have put conditions on their coronavirus aid—including France, Denmark, Scotland, and Argentina, with the Netherlands recently announcing it intends to do the same. They say companies can’t get some of the benefits if they engage in tax avoidance.

“It is not appropriate to ask for tax money in dire times and avoid tax at the same time. That is ...