Companies and tax authorities can all benefit if they work together It's similar with the debate about 'tax havens'. It's for sovereign nations to determine their own tax rates in accordance with the revenues they want to generate. Businesses like Shell are perfectly entitled to operate in low-tax jurisdictions for legitimate business purposes. The reality is that we have every incentive to pay our fair share of tax and be transparent about it. There is no better way to highlight our industry's role as a powerful engine of government revenues, employment and growth, and to demonstrate that profitable and well-run businesses are essential to healthy societies. In 2010, Shell paid around $15bn (£9.7bn) in corporate taxes and collected more than $80bn in excise duties and sales taxes on behalf of governments - excluding the royalties, payroll, property and other taxes we pay. In 2011, Shell invested nearly $30bn in developing and delivering new energy supplies, and spent around $62bn with external suppliers. This is a powerful driver of global prosperity and employment. The scale of our contribution shows why we are happy to be transparent about the amount of tax we pay. It's also why predictable tax regimes that incentivise investment are so important. Just now, they matter more than ever: enormous deficits are prompting some governments to pursue a more short-term, volatile approach to tax. Another critical element of these regimes is how the authorities apply the law, and whether they do so in an efficient, consistent and predictable manner. All of which explains Shell's commitment to closer co-operation with the authorities, to whom we provide timely and comprehensive information on potential tax issues, in return for treatment that is impartial, proportionate, open, responsive and grounded in an understanding of our commercial environment. Of course, we don't expect to get everything our own way or to enter into 'sweetheart deals' that allow us to avoid complying with tax laws. For the tax authorities, closer co-operation offers the most efficient route to raising revenues, reducing the need for lengthy and expensive audits and enabling them to focus on their most important risks, and on those miscreants engaged in tax evasion and fraud. There are three key factors in effective co-operation. First, there should be genuine commitment to the relationship from both sides. Second, mutual trust, underpinned by rigorous controls and audit procedures, must be developed. Third, this co-operation should be mutually beneficial and reduce costs for both sides: businesses should be demonstrably transparent, while tax authorities should resolve issues more swiftly. Businesses and governments are in a volatile era, in which stable and predictable tax frameworks are critical in maintaining the right conditions for much-needed business investment. If companies and tax authorities work together in a spirit of trust, transparency and mutual understanding then all parties will benefit. Businesses will enjoy stronger investment conditions, and governments will receive revenues more quickly and cheaply. That is surely a prize worth striving for. Simon Henry is chief financial officer at Royal Dutch Shell.