Tax Exiles Risk Being Marooned When Europe Doles Out Virus Aid

Tax-dodging corporations with outposts in offshore havens risk being left high and dry when European nations hand out vast bailouts to companies devastated by the Covid-19 pandemic.

A growing number of countries said they may exclude companies based in the Cayman Islands, Panama, the U.S. Virgin Islands and other states on a European Union blacklist of “non-cooperative jurisdictions for tax.”

Upholding its Nordic reputation for fair play, Denmark has taken the lead, prompting politicians across the 27-nation EU to call for similar action as public impatience grows over rescues going to tax-dodging companies.

“You cannot ask the Danish society for ...