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Dutchdude 2016/08/05 at 3:03 pm

A few weeks ago there were some posts about Shell pocketing the tax relief of those taking the severance package. I had expected a bit more comments on this? Is the principle of tax not that it goes to the government? Since when do we allow companies to impose their own tax? Apart from the unfairness to the employees who worked for this and made sacrifices, it feels incorrect and arrogant. Tax should go to the government and tax relief to the person who is entitled to it. It should not be allowed to be taken away by unscrupulous HR staff. If there is a reader here who works for the government tax department please raise this with your employer (UK, Holland, …). I bet that each severance employee rather pays tax to his government than to Shell.

regular browser: 2016/08/05 at 7:19 pm

Unfortunately Dutchdude both the UK and Dutch governments are so deep in the pocket of Shell that nothing would happen. It would take extraordinary publicity and public pressure to get anyone to pay attention and given that these payoffs even with the tax theft are out of the realm of possibility for most of the populace there is likely to be little sympathy. It is not the first time and won’t be the last that ‘creative’ HR types have found ways to screw the worker out of monies. They have done it with ‘Local’ terms for people who are clearly expats, LNN terms, the Dutch 30% ruling, Expat assignments for home country staff, mandatory offshore banking for a number of territories and assignments and the list goes on. Even Deloitte is culpable in the way it prepares tax returns to benefit Shell. My personal view is that although sad the ones that can get out with any kind of payment are probably better off outside of what is clearly becoming a sinking behemoth that will realise too late the value that many of those it is shedding bring to the company – all of whom have largely been sacrificed on the vanity project that is the overpriced BG acquisition and the reluctance to accept that the days of high oil price (at least stable and sustained) are over.

Cesar: 2016/08/05 at 9:09 pm

Amen to that Regular Browser. I’ve seen very decent and talented colleagues being treated like ladies of the night ie first the deplorable act against them and then being paid off at the end of it by the HR pimps. I hate to say it but the show is about to come to an end for this arrogant dinosaur. It’s one thing that they bully people like you Mr Donovan, but when they turn on their own staff, these are sure signs of the beginning of the end.


DAILY MAIL ONLINE/REUTERS: Shell takes sacked UK workers overseas service tax breaks: 8 JULY 2016

ENERGYVOICE: Shell depriving ex-workers of tax breaks on redundancy pay – report: 8 JULY 2016 Greedy Shell Takes Redundant Employees Tax Breaks: 8 JULY 2016

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One Comment

  1. Peter Robins says:

    Shell is following anti-employee tax policy in India in case of severance pay. As regards severance pay policy one side Shell is discriminating their Indian staffs with Dutch staffs by paying only a few months pay as severance pay when for Dutch staffs they are paying minimum 3 years salary. On other hand Shell is deducting tax from the severance pay in India although as per Indian tax law severance pay is non-taxable. There is court ruling on this tax-ability, still Shell is deducting tax in the range of one third of the total paid amount.