Collaboration is key: without it no true transparency is possible. Shell is a founder and board member of the Extractive Industries Transparency Initiative (EITI), a coalition of governments, companies and non-governmental organisations sharing common principles and the belief that high standards of transparency about government revenues can lead to more economic growth, safer investments, and better governance.
Consistent with the EITI requirements, we advocate mandatory country-by-country global reporting as most tax payments are made at the corporate level to national governments. We support unified revenue reporting rules and standards applicable to all multinationals, irrespective of their place of business. Our aim is to establish a level playing field while avoiding conflicts of laws between extraterritorial legislations and the legal frameworks of countries where Shell operates.
Dialogue takes many forms. Shell supports developing co-operative compliance relationships with tax authorities on the basis of the framework proposed by the Forum on Tax Administration of the Organisation for Economic Co-operation and Development (OECD). We have a co-operative compliance relationship in place in the UK, the Netherlands and Singapore, and as a pilot, in Austria and Italy. With the authorities in other countries we are exploring potential partnerships.
We provide the authorities with timely and comprehensive information on potential tax issues, while we receive treatment that is open, impartial, proportionate, responsive and grounded in an understanding of our commercial environment. Not only does this approach help us to comply with both the letter and the spirit of the laws where we have our operations, it also improves transparency about our tax affairs and allows Shell to better manage its tax-related risks throughout the life cycle of each project.
At Shell, we understand how tax binds governments, civil society and businesses together. We use legitimate tax incentives and exemptions designed by governments to promote investment, employment and economic growth. But we oppose tax fraud and tax evasion. For transparency reasons, Shell reports all its significant subsidiaries.
Significant subsidiaries (AUDITED, taken from Shell’s annual report)
Significant subsidiaries at December 31, 2014, and Shell’s percentage of share capital (to the nearest whole number) are set out below. Those held directly by Royal Dutch Shell plc are marked with an asterisk (*). A complete list of investments in subsidiaries, incorporated joint arrangements and associates will be attached to Royal Dutch Shell plc’s annual return made to the Registrar of Companies.