Shell calls for political intervention on tax avoidance rules
Oil giant Royal Dutch Shell has warned the increasing tensions generated by a planned crackdown on tax avoidance could have strong repercussions on the industry.
Simon Henry, the FTSE 100 group’s chief financial officer, has urged political leaders to ensure global tax rules are not fragmented, claiming that a change in policy would pave the way for uncertain conditions in the market.
“I am not being apocalyptic but you don’t have to change the psychology too much to have a big impact on the willingness to carry out cross-border investment and trade,” Henry was quoted as saying by the Financial Times.
Henry added he feared a number of governments worldwide would implement “unilateral action” if the attempt to rewrite corporate tax regulations was to lead to a “weak compromise”.
The G20 leaders have commissioned the Paris-based Organisation for Economic Co-operation and Development to draw up a new set of regulations to fight the threat of tax avoidance, with the report set to be delivered in September.
“Political leadership is now key to get the right outcome,” Henry said, adding Britain’s “diverted profits tax”, which was introduced in April to prevent UK firms to redirect profits through tax havens was a backward step.
