At the end of last year, Shell’s head office moved to London. Fiscal considerations also played a role: dividend tax in particular would have been decisive for shareholders. That is why the addition to Shell is remarkable: the company cannot escape the new tax rules in the UK either.
“It certainly shows that taxation can change, it depends on policy,” says Van de Streek. However, he does not think that Shell’s departure from the Netherlands was in vain. “The dividend tax is on global profits, only on British profits, and the measure is temporary,” says Van de Streek. “It’s comparing apples to oranges.”
Therefore, he does not expect BP or Shell to leave the UK despite their public statements. “It doesn’t solve anything, because unlike the dividend tax, they can’t avoid this tax by establishing their headquarters in another country.”
In any case, the profits from the exploration of natural resources such as oil must be paid to the country from which the raw materials come. So it doesn’t matter where a company’s headquarters is located. “Therefore, I understand that the UK is being taxed more because it has less of an impact on the business environment.”
“Won’t be in the Netherlands”
Professor Van de Streek says the principle that companies that are exceptionally profitable after a crisis should pay more taxes to give that money to vulnerable groups could also be applied to other industries. “For example, internet companies and supermarkets have benefited disproportionately from the corona crisis.”
But the coalition agreement has nothing to do with it, and the discussion was not addressed in the spring memorandum. “Only the corporate tax rate was raised by 0.8% to increase healthcare wages during the pandemic, but that is obviously nothing compared to the extra 25% corporate income tax in the UK.”
Van de Streek doubts whether a tax increase is also an option for oil exploration in the Netherlands. “If NAM wants to lower it further, we may not be able to benefit from such a tax increase, as this tax is already higher than in the UK.”
Source: NOS
Smith Charles is a talented entertainment journalist and author at The Nation View. He has a passion for all things entertainment and writes about the latest movies, TV shows, music, and celebrity news. He’s known for his in-depth interviews with actors, musicians, and other industry figures, and his ability to provide unique perspectives on the entertainment industry.
