Shell relocates headquarters from The Hague to London

Shell relocates headquarters from The Hague to London

“Desperate surprise” And, most of all, very disappointing: the resignation government of the Netherlands has expressed regret “At the highest point” Royal Dutch Shell has decided to move its head office and financial location from The Hague to London. The announcement, made on Monday morning, November 15, signaled the Dutch equivalent of boxing: the oil and gas company would officially become Shell PLC by dismissing those eligible. “Government” And “Dutch” (Dutch). The CEO and CFO will be relocated to the British capital.

The company explains its operation above all else through the desire to simplify its organization in order to better redistribute its profits to shareholders. The shell actually contains only one type of stock, whereas there are currently “Class A” and “Class B” categories. ⁇ [Cela] Makes it possible to arrange more share withdrawals ”, Provides direction.

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Another reason for this transfer is Shell’s obligation to achieve carbon neutrality by submitting to the constraints of energy transfer. On Wednesday, May 26, the district court in The Hague forced the panel to reduce its emissions faster than expected. Environmental organizations and about 17,000 citizens have won a lawsuit demanding that the company reduce its emissions by 45% by 2030, in line with the 2015 Paris Climate Agreement.

Taxation schemes

Shell has appealed, but this judgment is pending and is expected to comply with the judgment rendered in the first instance. Management ensures that his action does not result in any change in the investigation and appeal. The Les Amis de la Terre Association, one of the complainants, agrees. “Legal proceedings are in Dutch courts”, Explains Peer de Rijk, co-ordinator of the complaint.

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Going to London is linked to tax issues and dividend taxation. In 2018, public opinion was shocked by the fact that Shell did not pay taxes when its profits soared to 1. 1.3 billion in the previous year. In the process, the government of Liberal Mark Rutte sought to fix the image of a country ranked fourth in the world in tax havens for large corporations, according to data from the International Network for Tax Justice.

So even though the head office of the tax-exempt groups was established in the kingdom, he introduced a scheme of taxing their profits. Shell could then accumulate the losses of its subsidiaries and subtract from its profits in the Netherlands – just like investing abroad. So its taxes have been reduced to almost zero in the last decade. The plan is to repeal the 15% tax on dividends paid to shareholders. Roote previously backed up, which would save 7 7 billion per shell.

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About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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