Supporting effective tax regimes

Fair, effective and stable tax systems are beneficial because they reduce uncertainty for both governments and companies. They help countries develop sustainable budgets, and they help companies manage their investments more effectively.

Governments may seek input from different stakeholders through public consultation when they design tax policies. We believe it is important to hold an open dialogue on fiscal matters as new legislation should be effective, practical to administer and facilitate the collection of taxes.

For example, we support the implementation of government-led carbon pricing systems, including carbon tax, and recognise these as an essential tool for reducing emissions and tackling climate change.

We regularly share knowledge and best practice through participation in industry and professional associations. These include the Extractive Industries Transparency Initiative (EITI), the B Team Responsible Tax Working Group (B Team), and Business at OECD.

For example, recently Shell participated in roundtable discussions with the OECD to share insights on the implementation of country-by-country reporting to tax authorities.

Shell senior executives, including tax and government relations professionals, lead our advocacy activities. Employees who conduct advocacy work are bound by Shell General Business Principles and Code of Conduct.

Our work with the EITI

We are a founder and board member of the EITI and Shell’s Executive Vice President Taxation and Controller, Alan McLean, serves on the international EITI Board. The EITI is the global standard to promote the open and accountable management of extractive resources.

The EITI provides a platform for governments, non-governmental organisations and companies to provide information that supports greater transparency and responsibility in the extractive sector, including the oil and gas industry.

We encourage governments to share contracts and licences, in line with the EITI’s revised standard on contract transparency. This requires countries implementing the EITI standard to disclose contracts and licences that are granted, entered into or amended from January 1, 2021. We also aim to support governments’ ambitions to achieve contract transparency.

At the Global Conference of the EITI in Paris in June 2019, our Chief Financial Officer, Jessica Uhl, emphasised the importance of transparency to foster trust. She encouraged companies to join the B Team Responsible Tax Principles and to join the EITI.