1. Copyright: Shell Brands International AG 2008 6/27/2016 Taxation and economic growth: a business perspective Theo Keijzer Vice President Tax Policy Shell International B.V. Stockholm 15 June 2009

2. Design National Tax Policy: need to remove tax obstacles Tax obstacles to cross border investment – MNE – SME Three main tax systems: – Direct tax (profit based) – Indirect tax (consumption/volume based) – Employment tax

3. Direct Tax Future of corporate income tax Essence of CIT: no cross border protection Short term solution: – Enhanced co-operation/transparency: taxpayer/revenue – Improved relationship between revenue authorities – Comprehensive binding arbitration Long term solution: – Design global CIT (no double tax/all costs deductible) – Unhindered flow of money (cash/profit/interest/dividend/fees) – Consolidated return for large economic blocks

4. Indirect tax Two main streams: – Tax on sales – Tax on product (excise duties) Mainly collection role (working capital effect) However, major cost if no refund entitlement/paid Solution: – Efficient cross border systems – Less administrative burden

5. Employment tax Potential barrier to efficient staff planning – Expatriate postings – Different approach to tax on non-fixed-salary items OECD and article 15-2 (staff travel) Solution: – Retain and enforce existing art.15-2 – Group approach

6. Current recession/crisis Not all countries equally hit Measures to remove tax obstacles to international trade Enable cash to flow back quickly/retained – Faster depreciation – Later payment of VAT Cut loopholes After recession to finance deficits: – Broaden tax basis/no increase in tax rate – Consumption and climate change