MPs demand end to tax havens for oil

Unearned

Andrew George, the Liberal Democrat MP for St Ives, is urging action against tax avoidance practices in the oil industry within British territories. He described the use of these territories for such purposes as “completely unacceptable” and expressed concern that these activities, conducted under the UK’s name, are harming the country’s reputation. He emphasized that these actions seem to occur in the political shadows.

George stated, “I’m not interested in the politics of envy, it’s about justice and decency.” He acknowledged that while the companies involved are not breaking any laws, they are cynically exploiting available opportunities to their benefit, which has allowed them to make substantial profits.

He urged Parliament to focus on these issues occurring beyond UK borders but still under its jurisdiction. “We’re interested in the Chagos islands at the moment – there’s no reason why we can’t turn our attention to and take on this, too. We can’t bestride the globe lecturing others if we don’t get our back yard in order,” George concluded.

Dr Ellie Chowns MP, leader of the Parliamentary Green Party, criticized the situation as a scandal, pointing out that oil and gas companies are making billions in unearned profits from conflicts involving Trump and Netanyahu. They are routing these profits through British offshore territories to evade taxes, while ordinary Britons face rising energy costs.

Corporations

She argued, “No company should be able to pocket obscene profits from a global crisis, especially when those very same companies are responsible for polluting our planet and ushering in climate breakdown.” She called on the government to take decisive action to curb oil and gas profiteering and prevent British territories from being used as tax havens for the oil industry.

The report highlighted that Shell declares 11 percent of its revenue in the Bahamas, which, although no longer a British territory, was established as a tax haven by Britain. Its highest court of appeal remains the Judicial Committee of the Privy Council, which means that Shell’s assets are protected by British judges.

The report also examined how the UK’s tax system favors large corporations, particularly in the oil sector. This favorable regime contributed to Shell’s decision to move its headquarters from the Netherlands to London in 2022, with several experts labeling the UK itself as a ‘tax haven.’

This Author

Adam Ramsay is an investigative journalist. He publishes the Abolish Westminster newsletter. Read more from our special series, Big Oil and the British State.