Corporate Taxation: How Oil Majors Shift Billions in Profits to Island Tax Havens

bee

Shell and other oil majors are avoiding hundreds of millions of dollars in taxes in countries where they drill by shifting profits to thinly staffed insurance and finance affiliates based in tax havens, according to a Reuters review of corporate filings and rating agency reports. Shell, BP Plc, Chevron and Total use subsidiaries in the Bahamas, Switzerland, Bermuda, the UK Channel Islands and Ireland to provide their global operations with banking, insurance and oil-trading services, the documents show. These subsidiaries, in turn, book profits that go lightly taxed or entirely tax-free.

Such arrangements are not illegal. But they highlight the ability of international oil corporations to game global tax systems and avoid handing over revenue to nations where they conduct their core business, according to academics who study corporate taxation.

global-oil-tax-havens/special-report-how-oil-majors-shift-billions-in-profits-to-island-tax-havens

Mark

We've got to figure out a way to raise taxes on those who earn less than $200K a year to make up for the taxes these folks aren't paying. Oh wait, we're already doing that aren't we. To be fair, the oil majors aren't the only ones doing it.

Crash

Mark said:

We've got to figure out a way to raise taxes on those who earn less than $200K a year to make up for the taxes these folks aren't paying. Oh wait, we're already doing that aren't we. To be fair, the oil majors aren't the only ones doing it.

We all knew that was going on. But that news story is a good reminder. Makes me wanna go find one of those offices, and just start throwing grenades.

Observant1

Like Mark said, oil companies aren't the only ones taking advantage of tax havens.
As a former Connecticut resident, I recall when Stanley Works planned to reincorporate in Bermuda.
The company rescinded its plans after receiving major criticism from state officials, politicians, and Stanley Works employees.
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