The Audit Committee of Hess’ Board of Directors oversees the integrity of the company’s financial statements, financial reporting practices, systems of internal accounting and financial and disclosure controls, and other financial matters such as tax planning, compliance and reporting for income taxes.
Hess’ Vice President of Corporate Tax manages the Tax department and reports to our Chief Financial Officer. The Vice President of Corporate Tax updates the Audit Committee of the Board on the company’s tax posture and significant tax matters at least annually (and more frequently as needed); this includes briefings on the Tax department’s policies regarding tax planning, decisions around tax return positions, and financial reporting for income taxes.
Our internal control framework covers taxation, and our annual effectiveness testing (conducted under Sarbanes-Oxley) includes testing of these controls.
Also, Hess’ Code of Business Conduct and Ethics applies to the Tax department.
Approach to Conducting Tax Affairs
Compliance: We comply with tax laws in the jurisdictions where Hess operates.
Transparency: Hess Corporation and our subsidiaries have been under continuous audit by the Internal Revenue Service (IRS) for over 15 years. Since the 2011 tax year, the company has been included in a select group of companies invited into the agency’s Compliance Assurance Program, widely regarded as a best practice in managing IRS audits of federal tax returns. Hess is committed to working with the tax authorities in all jurisdictions relevant to our operations in a positive, proactive and transparent manner, with the goal of minimizing disputes and reaching mutually agreeable outcomes where possible.
Principled Stewardship of Company Resources: Hess recognizes that governments have the sovereign right to determine their tax policies and rates and to implement tax laws accordingly. This includes the sovereign right of governments to provide tax incentives and exemptions to promote investment, employment and economic growth. We aim for good faith compliance with applicable tax laws while legitimately accessing available incentives and exemptions to increase after-tax returns on investments.