Our operations generate revenue through taxes and royalties for governments around the world. These funds can help support a country’s economy and contribute to local development.
We believe greater transparency in payments to governments, and how they are used, is important for building trust between businesses such as ours and the communities we work alongside.
We work openly with governments on matters of taxes and royalties. We are a founder and board member of the Extractive Industries Transparency Initiative (EITI). This initiative requires both governments and companies to disclose revenues received from oil and mineral activities.
In 2012, Shell for the first time published details of the payments we make to governments of some of the main countries where we operate. We took this step to reinforce efforts to increase transparency on revenues to governments ahead of any mandatory requirements taking effect.
To help improve accountability, we support a mandatory global reporting rule for extractive industries, in line with EITI goals to achieve greater transparency (see opinion above). We are engaging actively with others to find a workable and common global standard in relation to current US and planned EU regulations.
In 2012, Shell paid globally $21.0 billion in corporate taxes, and $3.6 billion in royalties. We collected $85.1 billion in excise duties and sales taxes on our fuel and other products on behalf of governments.
For a breakdown of payments made to governments by country, see link below:
Shell was one of the very first companies to support the EITI when it began as an idea 10 years ago. Today, Shell is an active participant in the EITI countries where it operates. Iraq is an important case. With one-tenth of the proven oil reserves in the world and a history of conflict and mismanagement, governance of the extractives sector has been as challenging there as anywhere. It is particularly heartening that in December 2012, Iraq became compliant with the EITI standard. Shell has played an important role as one of three companies serving on the EITI multi-stakeholder council overseeing the process in the country. I hope that Shell will continue to play a role to embed, deepen and widen that process to ensure that Iraq’s complex governance issues in the sector are addressed in a constructive environment.”
Head of Secretariat, Extractive Industries Transparency Initiative,