Kamis, 08 April 2021

US offers new plan in global corporate tax talks - Financial Times

The Biden administration has proposed a new model for taxing multinational corporations, calling for the world’s biggest businesses to pay levies to national governments based on their sales in each country as part of a deal on a global minimum tax.

In documents sent to the 135 countries negotiating international taxation at the OECD in Paris and obtained by the Financial Times on Wednesday, the US Treasury laid out a plan that would apply to the global profits of the very largest companies, including big US technology groups, regardless of their physical presence in a given country.

The goal of the plan is to catalyse negotiations at the OECD, the international organisation of wealthy countries, with the promise of a more stable international tax system that would stop the proliferation of national digital taxes and break the mould of tax avoidance and profit-shifting by many multinationals. 

The US concession during the week of the IMF and World Bank spring meetings comes as the White House has called for raising US corporate taxes by about $2.5tn over the next 15 years to pay for more than $2tn in investments in infrastructure, clean energy and manufacturing.

After nearly a decade, the OECD tax negotiations have been broken up in two parts. The first pillar is designed to set a new regime for taxation of the largest multinationals, while the second pillar is designed to address the global minimum tax rate, which the US aims to see at 21 per cent. 

An agreement at the OECD would allow Joe Biden’s administration to increase corporate taxes on US companies without fear of being undercut by other countries because it would include a widely applied global minimum tax rate.

Washington has threatened to apply tariffs to countries including France, the UK, Italy and Spain — among others — over the digital taxes, which US tech companies are being asked to pay, on grounds that the taxes unfairly discriminate against US companies.

If the US plan is accepted, other countries would be able to increase revenues from big US tech groups and other multinationals that operated in their jurisdictions but paid little corporate tax.

The proposals received strong support on Thursday morning from Mario Draghi, the Italian prime minister, who also chairs the G20 this year. Supporting the US proposals to unblock the negotiations, Draghi said he was “fully behind [the US] call for a global minimum corporate tax”. 

As one of the countries that has introduced a digital tax, Italy's support for the US proposals will be important in securing a wider consensus. 

Ireland, which has a headline corporate tax rate of 12.5 per cent and has been one of the biggest beneficiaries from profit-shifting techniques by multinationals to reduce their tax liabilities, declined to comment on the latest US proposals. But the finance ministry said Ireland had “seen the benefits of international cooperation” and was “committed to the ongoing global discussions”.

“We wish to achieve a sustainable, robust and growth-friendly agreement . . . which meets the needs of all countries, large and small, developed and developing,” it added.

The offer from Washington reflects Biden’s broader goal of ending what officials have described as a race to the bottom on global taxation that has deprived governments of revenue needed to fund basic services and investments. 

Negotiations on international taxation have been bogged down at the OECD for years because the US has objected to what it has seen as attempts by other countries to put in place agreements that discriminated against US multinationals, particularly big US tech companies.

The Trump administration had insisted on a “safe harbour” provision that would make compliance by US technology groups voluntary. Soon after taking office this year, Biden dropped that demand, but this week’s proposal offers a new solution. 

The US Treasury is now offering a different formula in which only the very largest and most profitable companies in the world would be subject to the new rules, regardless of their sector, based on their level of revenue and profit margins. These would probably include about 100 companies, comprising the big US tech groups as well as other extremely large multinationals. 

The proposals have already been shared with the OECD, which is convening the negotiations and is trying to bring countries together to generate the outlines of a global deal by the summer. 

Pascal Saint-Amans, head of tax administration at the OECD, welcomed the US proposals. “This reboots the negotiations and is very positive,” he said. “It is a serious proposal with a chance to succeed in both the [international negotiations] and US Congress. Peace is more important than anything else and this would stabilise the [international corporate tax] system in the post-coronavirus environment.”

Saint-Amans added that the proposal was likely to raise as much revenue for other countries as the OECD’s own suggestion while also allowing the US to raise the money it wanted from its largest companies.

Many international tax campaigners have said the OECD proposals did not go far enough or give sufficient tax-raising powers to emerging economies. The US proposals do not significantly alter this feature although the US documents suggest the US is willing to be flexible on some details. 

An agreement would help resolve the transatlantic trade dispute between the US and several countries that have implemented digital services taxes in lieu of a broader multilateral agreement. 

Additional reporting by Guy Chazan and Ben Hall


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2021-04-08 11:21:19Z
52781490492567

US offers new plan in global corporate tax talks - Financial Times

The Biden administration has proposed a new model for taxing multinational corporations, calling for the world’s biggest businesses to pay levies to national governments based on their sales in each country as part of a deal on a global minimum tax.

In documents sent to the 135 countries negotiating international taxation at the OECD in Paris and obtained by the Financial Times on Wednesday, the US Treasury laid out a plan that would apply to the global profits of the very largest companies, including big US technology groups, regardless of their physical presence in a given country.

The goal of the plan is to catalyse negotiations at the OECD, the international organisation of wealthy countries, with the promise of a more stable international tax system that would stop the proliferation of national digital taxes and break the mould of tax avoidance and profit-shifting by many multinationals. 

The US concession during the week of the IMF and World Bank spring meetings comes as the White House has called for raising US corporate taxes by about $2.5tn over the next 15 years to pay for more than $2tn in investments in infrastructure, clean energy and manufacturing.

After nearly a decade, the OECD tax negotiations have been broken up in two parts. The first pillar is designed to set a new regime for taxation of the largest multinationals, while the second pillar is designed to address the global minimum tax rate, which the US aims to see at 21 per cent. 

An agreement at the OECD would allow Joe Biden’s administration to increase corporate taxes on US companies without fear of being undercut by other countries because it would include a widely applied global minimum tax rate.

Washington has threatened to apply tariffs to countries including France, the UK, Italy and Spain — among others — over the digital taxes, which US tech companies are being asked to pay, on grounds that the taxes unfairly discriminate against US companies.

If the US plan is accepted, other countries would be able to increase revenues from big US tech groups and other multinationals that operated in their jurisdictions but paid little corporate tax.

The proposals received strong support on Thursday morning from Mario Draghi, the Italian prime minister, who also chairs the G20 this year. Supporting the US proposals to unblock the negotiations, Draghi said he was “fully behind [the US] call for a global minimum corporate tax”. 

As one of the countries that has introduced a digital tax, Italy's support for the US proposals will be important in securing a wider consensus. 

Nadia Calviño, Spain’s deputy prime minister for the economy, told Bloomberg television it was very encouraging that Washington was “back” at the negotiating table, and she expected an agreement in the summer. But she added the details of the “very important” proposal still needed to be looked at.

The offer from Washington reflects Biden’s broader goal of ending what officials have described as a race to the bottom on global taxation that has deprived governments of revenue needed to fund basic services and investments. 

Negotiations on international taxation have been bogged down at the OECD for years because the US has objected to what it has seen as attempts by other countries to put in place agreements that discriminated against US multinationals, particularly big US tech companies.

The Trump administration had insisted on a “safe harbour” provision that would make compliance by US technology groups voluntary. Soon after taking office this year, Biden dropped that demand, but this week’s proposal offers a new solution. 

The US Treasury is now offering a different formula in which only the very largest and most profitable companies in the world would be subject to the new rules, regardless of their sector, based on their level of revenue and profit margins. These would probably include about 100 companies, comprising the big US tech groups as well as other extremely large multinationals. 

The proposals have already been shared with the OECD, which is convening the negotiations and is trying to bring countries together to generate the outlines of a global deal by the summer. 

Pascal Saint-Amans, head of tax administration at the OECD, welcomed the US proposals. “This reboots the negotiations and is very positive,” he said. “It is a serious proposal with a chance to succeed in both the [international negotiations] and US Congress. Peace is more important than anything else and this would stabilise the [international corporate tax] system in the post-coronavirus environment.”

Saint-Amans added that the proposal was likely to raise as much revenue for other countries as the OECD’s own suggestion while also allowing the US to raise the money it wanted from its largest companies.

Many international tax campaigners have said the OECD proposals did not go far enough or give sufficient tax-raising powers to emerging economies. The US proposals do not significantly alter this feature although the US documents suggest the US is willing to be flexible on some details. 

An agreement would help resolve the transatlantic trade dispute between the US and several countries that have implemented digital services taxes in lieu of a broader multilateral agreement. 

Additional reporting by Daniel Dombey


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2021-04-08 09:18:25Z
52781498088127

RAF uses missiles and bombs to clear IS stronghold in Iraq as part of 10-day operation - Sky News

The RAF used bombs and missiles to clear an IS stronghold in Iraq as part of a 10-day operation, the Ministry of Defence has said.

UK airmen worked in conjunction with Iraqi Security Forces ground troops to oust IS from the Makhmur mountain region of Iraq, southwest of Erbil.

They used three Typhoon FGR4s, Storm Shadow missiles and Paveway IV bombs for the attack, which surveillance later confirmed had been a success.

T3 Typhoon. Pic: MoD / SAC Cathy Sharples
Image: The RAF used three Typhoons. Pic: MoD/SAC Cathy Sharples

The area was checked beforehand to check no civilians would be put at risk, the MoD said in a statement.

Defence Secretary Ben Wallace said: "The British Armed Forces, alongside our Iraqi and coalition partners, continue to root out Daesh (IS) terrorists from where they hide.

"The UK is committed to defeating Daesh.

"This operation will prevent the terrorist group and its toxic ideology from regaining a foothold in Iraq and reduce its capability to coordinate attacks around the world."

More from Iraq

In a separate operation last Sunday, an RAF Reaper armed with Hellfire missiles completed a successful strike on a small IS camp in northern Syria 50 miles west of Al Hasakah.

The MoD says that while IS has been "territorially defeated", about 100,000 IS terrorists are still at large in Syria and Iraq.

"The UK, together with 81 partner nations of the Global Coalition, therefore remains committed to working with Iraq to not only defeat Daesh but to also enhance security in the region," the MoD statement added.

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2021-04-08 02:22:16Z
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South China Sea: Taiwan to ‘open fire’ on approaching Chinese drones amid tensions - Daily Express

The drones which Taiwan believes belong to China, have not yet entered the island’s airspace (ADIZ) but are circling close to the perimeter. On Wednesday, Lee Chung-wei, Head of the Ocean Affairs Council and Taiwanese Coast Guard, confirmed Taiwan’s course of action in response to the drones.

Mr Lee said: “They have never entered our restricted waters and airspace, they’ve just flown around them at a certain distance.”

When asked how the Coast Guard should react if the drones entered the island’s ADIZ, Mr Lee said the drones would be shot down.

“After it enters it will be handled under the rules.

“If we need to open fire, we open fire.”

Taiping Island, which is Taiwan’s next largest island in the region after the Pratas, has not yet recorded any drone activity according to Mr Lee.

China does not recognise Taiwan’s claims to sovereignty, including the democratically ruled island’s restricted water and airspace which extends 6km from its coast.

The Pratas Islands near which the drones were spotted is the closest Taiwanese controlled island to Hong Kong and lies towards the north of the highly contested South China Sea over which Beijing has claimed over 90 percent as its own territory.

In recent weeks, Taiwan has recorded and complained about repeated incursions on its ADIZ and sovereignty by Chinese aircraft.

READ MORE: Chinese jets enter Taiwan defence zone in latest incursion

He said: “We are willing to defend ourselves, that's without any question.

“We will fight a war if we need to fight a war, and if we need to defend ourselves to the very last day, then we will defend ourselves to the very last day.”

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2021-04-08 00:37:39Z
52781486979522

Rabu, 07 April 2021

Mozambique: Inside the hotel overrun by Islamist militants in deadly terror attack - Sky News

Southern Africa leaders will gather in the Mozambican capital of Maputo over the next few days to try to hammer out plans to counter the growing threat of terrorism across the region.

The country's president, Filipe Nyusi, says his government is working with their international partners to try to assess their needs after the most serious terror attack since the start of the armed insurgency four years ago.

A convoy of contractors, journalists and soldiers were taken into the town of Palma, which was overrun by fighters a fortnight ago, to demonstrate how the army has reclaimed the area.

Image: 200 expats, foreign workers and locals hid in the Amarula Lodge during the siege

Days after Sky News was last here, there's already a tangible difference. Many more villagers are returning and the area is swamped with soldiers. It is now effectively a militarised zone.

Colonel Agostinho Muthisse told us he was confident the town and the surrounding area had been cleared of militants but admitted his troops were dealing with an enemy they did not know.

"We still don't know the reason why they are fighting or who the enemy is. We are trying to clarify who is supplying these terrorists," he said.

He believes the fighters have withdrawn - possibly as far as 70km (43 miles) away - within reach of the strategically important port of Mocimboa da Praia, which they have controlled on-off since August last year.

More from Islamic State

Several days after the Palma attack, the Islamic State claimed it had carried out the operation.

But many analysts believe the IS flag is just one of convenience, with the Mozambique group having no identifiable leader, no ethos or ideology and no clear motives.

We went with the army to the Amarula Lodge where nearly 200 expats, foreign workers and locals hid in fear as militants lay siege to the hotel.

The complex has been subjected to multiple lootings since and every room we entered had been ransacked and stripped of most valuables, even the mattresses from every bed.

Dozens were killed when IS overran the town of Palma in Mozambique. Sky News was the first international team to see the full extent of the damage.
Image: Palma is now effectively a militarised zone

In the car park there were still two wrecked cars, the tarmac was strewn with papers and an office printer had been left abandoned at the hotel entrance.

There was no sign of the abandoned vehicles which those trapped inside the hotel had tried to flee in.

A convoy of 17 vehicles was hastily organised by those under siege at the Amarula, who were becoming more and more desperate about being rescued.

But almost as soon as they exited the Lodge gates, the convoy was ambushed by militants waiting outside.

Image: Every room we entered had been ransacked
Image: The hotel has been subjected to multiple lootings

Among those killed was a Briton from Somerset, Phil Mawer, aged 59, whose body was later recovered from one of the abandoned vehicles.

Only seven vehicles managed to escape.

We were led by villagers to a tree immediately opposite the Amarula Lodge entrance. It was here, they said, that a massacre took place.

An army official told us they'd found 12 bodies laid out under the tree.

All of them had their hands tied behind their backs and their heads cut off. The villagers had buried them there, under the tree in a mass grave.

The military has yet to identify them, but thousands of people are still missing.

Image: A tree opposite the lodge is where locals say a massacre happened

In the chaos of the attack and amid the indiscriminate killings and mass exodus, there are an estimated 20,000 or more unaccounted for.

One contractor who was returning to Palma with us to check on his construction yard was aghast at the destruction the extremists had wrought on his business.

"It's all burned out," Zvika Karadi said.

"I'm finished with Mozambique now. I will try to sell my company. I'm not staying. I've got family and I have to take care of them," he added.

His view will be alarming to the Mozambican authorities who are trying to bolster confidence in investing in the country.

Palma is near the $60bn liquefied natural gas (LNG) project in the Afungi Peninsula - the single biggest investment in Africa.

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2021-04-07 22:52:30Z
52781487113189

Mozambique govt calls for international help after ISIS attack - Sky News

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2021-04-07 21:33:25Z
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George Floyd trial: Derek Chauvin should have used 'no force' after detaining unarmed man, trial hears - Sky News

The use of force against George Floyd should have stopped once he had been arrested and handcuffed, ex-cop Derek Chauvin's murder trial has heard.

Use-of-force expert Jody Stiger, a Los Angeles Police Department sergeant serving as a prosecution witness, said that based on his review of video evidence, Chauvin's knee was on Mr Floyd's neck from the time officers put him on the ground until paramedics arrived - about nine-and-a-half minutes, by prosecutors' reckoning.

George Floyd Killing: The Trial - Follow live continuous coverage of court proceedings in the trial of Derek Chauvin on our website, app, YouTube and Sky Pop Up Channel on 524

Police officer Derek Chauvin looks up while George Floyd (not in picture) was below him during his arrest on May 25, 2020 in a police body camera video played in court on the third day of the trial of former Minneapolis police officer Derek Chauvin for second-degree murder, third-degree murder and second-degree manslaughter in the death of George Floyd in Minneapolis
Image: Police officer Derek Chauvin looks up while George Floyd (not in picture) was below him during his arrest

Chauvin, 45, is charged with the second and third-degree murder and manslaughter of Mr Floyd, following his death on 25 May last year.

Mr Floyd, 46, had been arrested after being accused of trying to use a counterfeit $20 bill to buy cigarettes in a neighbourhood shop in Minneapolis.

A panicky-sounding Mr Floyd struggled and claimed to be claustrophobic as officers tried to put him in a police car, and instead put him down on the pavement.

Bystander footage of Mr Floyd crying that he couldn't breathe, as onlookers yelled at Chauvin to get off him, sparked protests across the US and around the world - and triggered a reckoning over racism and police brutality.

More from Black Lives Matter

At Chauvin's trial on Wednesday, prosecutor Steve Schleicher showed jurors a composite image of five photos taken from various videos of the arrest.

Mr Stiger went through each photo, saying it appeared the Minneapolis officer's left knee was on Mr Floyd's neck or neck area in each one.

George Floyd on CCTV in store moments before he died
Image: George Floyd on CCTV in the shop moments before he died

"That particular force did not change during the entire restraint period?" Mr Schleicher asked.

"Correct," Mr Stiger replied.

His testimony came a day after Chauvin's lawyer Eric Nelson sought to point out moments in the video footage when, he said, Chauvin's knee did not appear to be on Mr Floyd's neck.

Mr Nelson has argued that the officer, who was sacked after the incident, "did exactly what he had been trained to do over his 19-year career" - and he has suggested the illegal drugs in Mr Floyd's system and his underlying health conditions are what killed him, not Chauvin's knee.

Mr Nelson has also contended the officers on the scene perceived the onlookers as an increasingly hostile crowd and were distracted by them.

On Wednesday, Mr Stiger told the jury, "I did not perceive them as being a threat," even though some onlookers were name-calling and using foul language.

He said he thought most of the yelling was due to "their concern for Mr Floyd".

A George Floyd mural
Image: Mr Floyd's death sparked protests across the US and around the world

In his cross-examination, Chauvin's lawyer noted dispatchers had described Mr Floyd as between 6ft and 6ft 6ins tall and maybe under the influence of something, possibly drugs.

Mr Stiger agreed it was reasonable, therefore, for Chauvin to arrive with a heightened sense of awareness.

And he suggested that when Chauvin told Mr Floyd to "relax," he was trying to calm him down and reassure him.

According to evidence and records submitted on Tuesday, Chauvin took a 40-hour course in 2016 on how to recognise people in crisis, including those suffering mental problems or the effects of drug use, and how to use de-escalation techniques to calm them down.

Sergeant Ker Yang, the Minneapolis police official in charge of crisis-intervention training, said officers are taught to "slow things down and re-evaluate and reassess".

Records show Chauvin also underwent training in the use of force in 2018.

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'Unauthorised' neck restraint used on George Floyd

Asked by prosecutors whether Chauvin had an obligation to take Mr Floyd's distress into account as he was considering what level of force to use, Mr Stiger replied: "Absolutely. As the time went on, clearly in the video, you could see that Mr Floyd's ... health was deteriorating.

"His breath was getting lower. His tone of voice was getting lower. His movements were starting to cease."

"So at that point, as a officer on scene, you have a responsibility to realise that, 'OK, something is not right,'" Mr Stiger continued.

"'Something has changed drastically from what was occurring earlier.' So therefore you have a responsibility to take some type of action."

The trial continues.

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2021-04-07 19:54:02Z
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