Shell is committed to tax compliance
- We have a tax presence in 99 countries and locations
- We file around 43,000 tax returns annually
- We seek to protect the interests of our investors by managing our tax affairs in a sustainable way
The payment of taxes is a central link between Shell and the countries and communities where we operate. It is a vital part of our contribution to national economies and people’s lives.
When we invest in a country or location, we seek to build long-term relationships and develop our business sustainably. We recognise our responsibility towards investors, governments, employees and the local communities we are part of. The taxes we collect and pay represent one of the ways in which we embrace this responsibility. Our tax strategy is designed to support Shell in delivering our Powering Progress strategy. It is based on compliance, being transparent about our approach to tax and taxes paid and openness to dialogue with governments, businesses, investors and civil society.
The Board of Directors of Shell plc approves our tax strategy, regularly reviews its effectiveness and maintains a sound system of risk management and internal control.
The Executive Vice President Taxation and Controller is responsible for tax matters and provides assurance based on our internal tax control framework. The Audit Committee assists the Board in maintaining a sound system of risk management and internal control and oversight over Shell’s financial reporting. A variety of standing matters and more specific topics are discussed by the Audit Committee throughout the year. As part of the year-end reporting process, the Audit Committee advises the Board on the adequacy of the system of risk management and internal control in place.
In 2018, we endorsed the B Team Responsible Tax Principles, which were developed by a group of leading companies, including Shell. Civil society, investors and representatives from international institutions contributed to their development. In 2019, we adopted these principles as our own. The Shell Responsible Tax Principles guide our decisions on tax matters.
We are committed to complying with the tax legislation of the countries in which we operate and pay the right amount of tax at the right time, in the countries where we create value.
We will only use business structures that are driven by commercial considerations, are aligned with business activity and which have genuine substance. We do not seek abusive tax results.
We seek, wherever possible, to develop co-operative relationships with tax authorities, based on mutual respect, transparency and trust.
Where we claim tax incentives offered by governments, we seek to ensure that they are transparent and consistent with statutory and regulatory frameworks.
We engage constructively in national and international dialogue with governments, business groups and civil society to support the development of effective tax systems, legislation and administration.
We provide regular information to our stakeholders, including investors, policymakers, employees, professional service providers and the general public about our approach to tax and taxes paid.
Shell agrees to report on environmental, social and governance performance factors, including tax, against the World Economic Forum Stakeholder Capitalism Metrics
First publication of Shell’s Tax Contribution Report
Pilot International Compliance and Assurance Programme
Shell commits to the B Team Responsible Tax Principles
Publication of Shell UK Tax Strategy and Statement on Tax Evasion
Shell’s first country-by-country report submitted to tax authorities
First publication of Payments to Governments Report in line with European regulations (covering exploration and production activities)
First voluntary publication of tax payments in 14 countries
Publication of Shell’s Approach to Tax
One of the initiators of the Extractive Industries Transparency Initiative (EITI)
Shell does not condone, encourage or support tax evasion, and is committed to implementing procedures to prevent anybody employed or contracted to Shell or acting on Shell’s behalf facilitating the evasion of tax.
The Tax Contribution Report is an important move for Shell towards greater transparency around our approach to paying taxes, and aims to offer a deeper understanding of our principles and actions in this area.
At Shell, we share a set of core values – honesty, integrity and respect for people – which underpin all the work we do. The Shell General Business Principles, Code of Conduct, and Ethics and Compliance Manual help everyone at Shell act in line with these values and comply with relevant laws and regulations.
Code of Ethics for Executive Directors and Senior Financial Officers of the Shell group.