Royal Dutch Shell Plc  .com Rotating Header Image

Posts under ‘Shell Tax Avoidance’

Swiss Role in Aggressive Tax Avoidance by Royal Dutch Shell

Screen Shot 2014-11-30 at 21.13.40

Screen Shot 2014-10-30 at 09.22.43By John Donovan

The lead article in The Sunday Times Business section today (authored by Simon Duke and David Smith) says that Britain is at the forefront of a crackdown on corporate tax avoidance – a blitz on tax avoidance by multinationals.

The UK Treasury  is planning a consultation on forcing multinationals like Royal Dutch Shell to declare how much tax they pay in every country in which they operate.

Extract

Country by Country reporting would introduce greater transparency into the complex structures used by big companies to minimise their tax liabilities… read more

Royal Dutch Shell Saves $2.5 billion In Transfer-Pricing Case

Screen Shot 2014-11-17 at 15.01.44

Screen Shot 2014-11-20 at 13.14.13

Bidness Etc discusses the ruling by an Indian court in a transfer-pricing case against Shell and its impact on future foreign investment in the country

Published: November 19, 2014 at 12:26 pm EST

By: Micheal Kaufman

The Bombay High Court has ruled in favor of Royal Dutch Shell plc (NYSE:RDS.A) in a high-tax profile case, which could pose a hurdle to the Indian government’s plans on bringing in foreign investment and much-needed revenue.

The ruling was announced on Tuesday, after Indian authorities claimed tax money paid to transfer shares of Shell. The court has not released a written judgment yet.

The judgment can negatively impact India’s image, which might cause leading foreign companies to hesitate to invest in India. Indian Prime Minister Narendra Modi can intervene and reverse the ruling. read more

Drilling in Alaskan Arctic relatively easy said Shell VP before being fired

Screen Shot 2014-10-31 at 17.18.55By John Donovan

According to a recent article published by Bloomberg – Shell Seeks to Drill in Arctic in 2015, Defying Green Activists – Shell CFO Simon Henry, calling on all his vast experience as an accountant, voiced the opinion that it is not difficult to drill in the Arctic.

His assessment is surprisingly similar to that also expressed in optimistic terms in March 2012 by Shell EP senior Vice President David Lawrence, then in charge of Shell’s Arctic drilling plans.

The following is an extract from an article published on 9 March 2012. read more

Shell wins $3bn tax battle in Bombay High Court

Screen Shot 2014-10-30 at 09.22.43The Financial Times is reporting:

“Royal Dutch Shell has won a significant victory in its long-running $3bn battle with India’s revenue authorities, in a judgment with implications for dozens of tax disputes involving multinational companies in Asia’s third-largest economy.”

The Narendra Modi government may appeal the decision to the supreme court of India.

Also Reuters Report: Shell wins India tax case

Shell’s own goals in the Arctic: Over to you, Ann

Screen Shot 2014-08-06 at 09.25.26US authorities say a desire to avoid taxes lead Shell to move an oil rig in rough seas in 2012, which lead to its grounding.

Extract from an article published in The Sydney Morning Herald, 3 November 2014

When Ann Pickard says how sorry she is to be leaving the Westpac board after its shareholder meeting next month – just three years after taking her seat – there is no doubting her sincerity.

Chairman Lindsay Maxsted says that following the former Shell Australia boss’s “executive relocation to the US and expectations that her commitments in North America (as head of Shell’s Arctic operations) will increase in 2015, Ms Pickard reluctantly chose to retire from the board”. read more

Shell’s Arctic Machinations

Screen Shot 2014-08-06 at 09.25.26The environmental group Oceana has obtained a copy of a letter from Shell to the U.S. Dept of the Interior revealing that the oil giant is seeking to pause Shell’s leases for five years. Approval would effectively extend the current drilling deadlines.  Shell’s plans to drill off the Alaska coast have already been heavily delayed by a series of avoidable mishaps, initially caused by negligence and incompetence, and subsequently by a desire to evade tax.

Extracts from a related Bloomberg article:

Shell Seeks 5 More Years for Arctic Oil Drilling Drive

Royal Dutch Shell Plc (RDSA) is asking the Obama administration for five more years to explore for oil off Alaska’s coast, saying set backs and legal delays may push the start of drilling past the 2017 expiration of some leases.

Shell, which has spent eight years and $6 billion to explore the Arctic’s Beaufort and Chukchi seas, said in letter to the Interior Department that “prudent” exploration before leases expire is now “severely challenged.”

“Despite Shell’s best efforts and demonstrated diligence, circumstances beyond Shell’s control have prevented, and are continuing to prevent, Shell from completing even the first exploration well in either area,” Peter Slaiby, vice president of Shell Alaska, wrote to the regional office of the Bureau of Safety and Environmental Enforcement. read more

Royal Dutch Shell News 15 Oct 2014

Screen Shot 2014-09-18 at 14.09.10
By John Donovan

WHISTLEBLOWER ALLEGES ROYAL DUTCH SHELL TAX EVASION IN NIGERIA 

A former manager of Shell Production Development Company in Nigeria has accused Shell of massive tax evasion. He also alleges that the Nigeria Economic and Financial Crimes Commission demanded a bribe from him as part of a related cover-up plan for Shell. The whistleblower also claims that his safety is in jeopardy. All strangely reminiscent of allegations surrounding the Corrib gas project in Ireland. MORE INFORMATION HERE.

SHELL FIRE SALE OF NIGERIAN ASSETS

A consortium led by Aiteo Group has won the auction for Shell oil block OML 29 in Nigeria, with a bid of N434b. The total cost of the acquisition is said to be $2.7 billion, allowing for working capital. MORE INFORMATION read more

Arctic Drilling: a spectacular failure of good judgment by Shell

Screen Shot 2014-08-06 at 09.25.26Kim Elton accuses Shell’s management of “a spectacular failure of good judgment” and points out that “Company managers ordered the Kulluk towed south through the winter-storm-lashed Gulf of Alaska before the 2013 new year — partly to avoid Alaska taxes.”

By John Donovan

Kim Elton, a former senior adviser to the U.S. Department of the Interior, who was involved in oversight of Shell’s 2012 Arctic drilling plans, has made some very blunt comments about the debacle. 

Kim admits that she “fell for Shell’s promise that their drill fleet was ready to tackle the Arctic.”

She says Shell’s “dive into the Arctic Ocean was a spectacular belly flop”and lists the disastrous chain of events, reminding us that “Shell incurred more than $1 million in fines for air quality violations.” read more

ROYAL DUTCH SHELL: Ice buckets, rust buckets and superbuckets

By John  Donovan

According to the the Vancouver Observer, Shell CEO Ben van Beurden, has accepted the ice bucket challenge from Leonardo DiCaprio to oil sands executives. 

The reputation of his predecessor as Shell CEO, Peter Voser, sunk after he faced and failed a challenge in the Arctic.

Voser came spectacularly unstuck as a result of sending a couple of refurbished old rust buckets into Alaskan waters in an ill-fated tax dodging scandal resulting in ship board fire, explosions, pollution, groundings and public humiliation. read more

Royal Dutch Shell Files Arctic Drilling Plans

Screen Shot 2014-08-29 at 00.00.49A Shell spokesperson claims that the company’s latest Arctic exploration plan takes into account lessons learned from the 2012 operation (which turned into a dangerous farce after Shell engaged in reckless machinations in an effort to evade tax).

By John Donovan

Royal Dutch Shell has filed a plan with US federal regulators that could result in a resumption of its Arctic drilling campaign in the summer of of 2015.

However, the oil giant still has significant regulatory and legal issues to deal with in the meantime.

A Shell spokesperson claims that the company’s latest Arctic exploration plan takes into account lessons learned from the 2012 operation (which turned into a dangerous farce after Shell engaged in reckless machinations in an effort to evade tax).  read more

Diminishing Shell in Australia

Screen Shot 2013-12-10 at 09.33.03Extracts from a Sydney Morning Herald article by Michael West published 2 June 2014 under the headline: “Is petrol producer an empty Shell?”

Suffice to say that Shell has contributed to the Australian economy in a big way over the years. Not quite so big any more, though. Shell Australia has become less an Australian company now than a figurine for its foreign parent. One corollary of this is that it is paying less tax. Shell, like other large corporations, is mimicking the aggressive tax practices of Google and the multinational new guard, and the implications for Australia’s tax base are menacing. If you look at Shell’s website, you will find that it calls itself Shell in Australia. It used to be Shell Australia. The word ‘‘in’’ is a small word but powerfully redolent of what has changed. This is no longer an Australian company in mind and management. read more

Political tussle over swearing-in of oil executives unfolds on Senate floor

Screen Shot 2012-09-19 at 09.13.48Extracts from an article by RICHARD MAUER published 9 April 2014 by Anchorage Daily News

JUNEAU — A request by a Democratic senator that a Republican committee chairwoman require oil industry officials to be sworn before testifying Wednesday about the effects of last year’s tax cut erupted into a sharp personal battle between the two. The verbal confrontation started in committee and moved to the Senate floor. French cited the Coast Guard investigation into the grounding of Shell’s drilling rig Kulluk as a reason for putting the company officials under oath. Referring to a recent Daily News story on the investigation, French noted that a Shell official once denied to a reporter that there was any connection between Shell’s decision to move the Kulluk in early winter and the property tax the company would have to pay if the rig remained safely in Dutch Harbor. But under oath to the Coast Guard, the Shell official admitted the pending tax payment was one of the considerations for beginning the rig’s tow into a fierce Gulf of Alaska storm. read more

Under oath admission of tax dodging in Alaska by Shell executive

Screen Shot 2013-06-19 at 17.10.39Extracts from an article published by Sit News on 9 April 2014 under the headline: ‘Under Oath’ Request Unprecedented

(SitNews – Ketchikan, Alaska) – Yesterday Senator Hollis French (D-Anchorage) sent a letter to Resources Chair Senator Cathy Giessel requesting that she use her statutory authority to swear in the oil industry witnesses who were scheduled to appear before the Resources Committee today (Wednesday, April 9, 2014). The investigation surrounding the grounding of Royal Dutch/Shell’s Arctic drilling rig, the Kulluk, had a role in French’s decision to make the request. Through a series of problems the Kulluk went aground. Questions arose about whether Shell took the risky move of a mid-winter tow to avoid paying millions in state property taxes. A Shell executive told the press that tax considerations had nothing to do with the move. The same executive later admitted under oath that Alaska tax laws influenced the move. read more

Shell remains committed to Alaskan arctic

Ann Pickard, Head of Shell's Arctic Adventures

Ann Pickard, Riding to the Rescue of Shell’s Arctic Fiasco

Extracts from an article by Daniel J. Graeber published 9 April 2014 by UPI

HOUSTON, April 9 (UPI) — The arctic waters off the Alaskan coast may be one of the more promising reserve basins in the nation, but exploration will have to wait, Shell said Wednesday. Ann Pickard, executive vice president for Shell’s arctic programs, said arctic nations have decided to open their waters to exploration and her company aims to develop those reserves responsibly. Last week, the U.S. Coast Guard published a 152-page report on Shell’s operations in Alaska. Shell’s drillship Kulluk struck ground off the Alaskan coast in 2012, and the Coast Guard blamed harsh winter conditions and the company’s efforts to escape Alaskan tax laws for the incident. read more

Shell’s UK corporation tax bill tumbles

Screen Shot 2014-04-10 at 00.19.29Extracts from an article by ROB DAVIES published 9 April 2014 by This is Money.co.uk under the headline: “Shell’s UK corporation tax bill tumbles by nearly 90 per cent as company invests more in North Sea and production declines”

Shell’s UK corporation tax bill tumbled by nearly 90 per cent to just £55.5m last year, as the company invested more in the North Sea and production declined. Shell’s UK bill fell from £487m last year to £55.5m, less than it paid in Nigeria, Norway, Australia, Malaysia, Canada and Italy.

Shell’s public image was tarnished last week by a report from the US Coastguard which criticised readiness for Alaskan Arctic drilling. …the US Coastguard assessment of Shell’s preparedness was rather more cutting. The report criticised the plan for towing the Kulluk, saying Shell showed a ‘lack of respect’ for the conditions. It also said Shell’s decision to tow the Kulluk to Seattle amid rough winter seas was partly motivated by a desire to cut tax, something former boss Peter Voser denied. read more

Shell risked offshore workers lives to dodge Alaskan tax bill

Screen Shot 2013-07-15 at 07.03.50Despite all promises to the contrary, Shell is still putting monetary considerations before safety. Just read some of the recent articles about Shell’s reckless conduct in offshore Alaska. It put the lives of offshore workers and the environment at risk to avoid a potential multimillion dollar tax bill. Personally, I do not believe enough attention has been drawn to the ethical issue of Shell deliberately putting peoples lives at risk in a calculated gamble.

Royal Dutch Shell Safety Last, not First

By John Donovan

Despite all promises to the contrary, Shell is still putting monetary considerations before safety.

Just read some of the recent articles about Shell’s reckless conduct in offshore Alaska.

It put the lives of offshore workers and the environment at risk to avoid a potential multimillion dollar tax bill.

This extract from a US News & World Report article published yesterday is typical of the many comments published elsewhere:

Notably, in September 2012, a Royal Dutch Shell drilling rig ran aground in Alaska as workers attempted to tow it beyond the state’s waters. A Coast Guard report released Friday found that the Anglo-Dutch oil company decided to move the rig – and insisted on doing so through dangerous stormy weather – to avoid paying new Alaskan taxes. The report also detailed myriad safety issues. read more

%d bloggers like this: