Reuters
Published Apr 10, 2019 17:40
Dutch MPs - Shell must attend hearing on tax avoidance
AMSTERDAM (Reuters) - Members of the Dutch parliament's financial affairs committee on Wednesday said they will insist that Shell (LON:RDSa) send a representative to attend a hearing on tax avoidance by multinationals next week.
Shell's Dutch Chief Executive had previously declined an invitation, saying it made more sense for the Netherlands' business association to represent all taxpaying companies.
But at a meeting of the committee on Wednesday, politicians of all parties said they wanted Shell to attend. Lawmaker Pieter Omtzigt said in a statement the parties had unanimously asked parliament's chairwoman to "forcefully" ask Shell to come.
Shell's corporate structure features a parent company headquartered in The Hague but two share classes and other arrangements to prevent the Dutch government from levying withholding tax on dividends paid to shareholders of its former British arm.
The unusual arrangement has come under renewed scrutiny after the Dutch government tried to scrap the dividend tax as part of plans to convince Anglo-Dutch consumer goods giant Unilever (LON:ULVR) to unify its headquarters in Rotterdam. Prime Minister Rutte gave up the idea after a popular outcry against the tax cut, which was seen as a gift to rich foreigners.
Shell has consistently lobbied against the dividend tax, which it says makes financing dividends, share buy-backs and acquisitions more difficult.
A spokesman for Shell said on Wednesday the company has not yet received any formal request to attend the April 18 meeting in parliament.
If it receives one, it will consider it, he said.
In a statement on its Dutch website, Shell Netherlands Chief Executive Marjan van Loon said the company pays all taxes it owes.
"Think of taxes on profit, royalties, employee taxes, value added tax and excise taxes," she said in a statement dated April 9. "We are completely open to the Dutch tax authority."
The statement said Shell had paid more than $10 billion in profit tax and $6 billion in royalties in 2018. It said Shell's global effective tax rate is 33 percent.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.