Global tax deal backed by 130 nations

Yahoo – AFP, Jürgen HECKER, July 1, 2021 

US digital giants are the main targets of the new tax

A total of 130 countries have agreed a global tax reform ensuring that multinationals pay their fair share wherever they operate, the OECD said on Thursday, but some EU states refused to sign up. 

The Organization for Economic Co-operation and Development said in a statement that global companies, including US behemoths Google, Amazon, Facebook, and Apple would be taxed at a rate of at least 15 percent once the deal is implemented. 

The new tax regime will add some $150 billion to government coffers globally once it comes into force, which the OECD said it hoped would be in 2023. 

"The framework updates key elements of the century-old international tax system, which is no longer fit for purpose in a globalised and digitalised 21st century economy," the OECD said. 

The formal agreement follows an endorsement by the G7 group of wealthy nations last month, and negotiations now move to a meeting of the G20 group of developed and emerging economies on July 9-10 in Venice, Italy. 

US President Joe Biden said the latest deal "puts us in striking distance of full global agreement to halt the race to the bottom for corporate taxes." 

Germany, another backer of the tax reform, hailed it as a "colossal step towards tax justice", and France said it was "the most important tax agreement in a century". 

British finance minister Rishi Sunak, whose country holds the G7 presidency, said "the fact that 130 countries across the world, including all of the G20, are now on board, marks a further step in our mission to reform global tax". 

'In everyone's interest'

But EU low-tax countries Ireland and Hungary declined to sign up to the agreement reached in the OECD framework, the organisation said, highlighting lingering divisions on global taxation. 

Both countries are part of a group of EU nations also including Luxembourg and Poland that have relied on low tax rates to attract multinationals and build their economies. 

Ireland, the EU home to tech giants Facebook, Google and Apple, has a corporate tax rate of just 12.5 percent. 

Irish Finance Minister Paschal Donohoe has warned that the new rules could see Ireland lose 20 percent of its corporate revenue. 

On Thursday, Donohoe said Ireland still "broadly supports" the deal, but not the 15-percent tax floor. 

The tax plan got a much-needed boost from Joe Bidens's administration

"There is much to finalise before a comprehensive agreement is reached", he said, adding that Ireland would "constructively engage" in further discussions. 

Also expressing concerns is Switzerland -- known for its banking secrecy laws -- which said it would support the measures despite "major reservations" and that it hoped the interests of "small, innovative countries" be taken into account. 

An agreement for the implementation of the plan is planned for October. 

Nine of the 139 participants in the talks have so far not signed on to the agreement. 

But China, whose position was being closely watched as it offers tax incentives to key sectors, endorsed the agreement. 

"It is in everyone's interest that we reach a final agreement among all Inclusive Framework Members as scheduled later this year," said OECD Secretary General Mathias Cormann. 

"This package does not eliminate tax competition, as it should not, but it does set multilaterally agreed limitations on it," Cormann said, adding that "it also accommodates the various interests across the negotiating table, including those of small economies and developing jurisdictions". 

'More equitable' global economy 

Finance chiefs have characterised a minimum tax as necessary to stem competition between countries over who can offer multinationals the lowest rate. 

For Biden, a global tax agreement will help maintain US competitiveness since he has proposed hiking domestic corporate taxes to pay for an infrastructure and jobs programme with a price tag of around $2 trillion. 

Biden -- whose tax plans face a potentially uphill battle in Congress -- hailed an "important step in moving the global economy forward to be more equitable for workers and middle class families in the United States and around the world." 

He noted that those nations who signed up make up more than 90 percent of the world's economy. 

The OECD's statement said the package "will provide much-needed support to governments needing to raise necessary revenues" to fix their budgets and invest in measures to back the post-Covid recovery. 

Oxfam, a charity, meanwhile said that the deal fell short of a tax level needed to give poorer countries a sufficient share of additional tax revenue. 

Calling the deal "skewed-to-the-rich and completely unfair", Oxfam said that signatories had missed a "once-in-a-lifetime opportunity to build a profoundly more equal world".

Facebook to close Irish units at center of tax dispute

Rfi.fr – AFP, 30 December 2020 

Facebook said its Irish subsidiary at the heart of a dispute on shifting profits
 to avoid taxes has been closed, with the assets brought back to the California
giant DENIS CHARLET AFP/File

Washington (AFP) - Facebook confirmed Wednesday it was closing its Irish subsidiaries at the center of a dispute on profit shifting to avoid taxes in the United States. 

The California tech giant acknowledged the winding down of Facebook Ireland Holdings Unlimited Company amid a dispute with US tax authorities, which claimed the company owed billions in taxes by improperly shifting profits offshore. 

A Facebook spokesperson said the move was "part of a change that best aligns with our operating structure" and that the holdings of the three subsidiaries were "distributed to its US parent company." 

The closing was previously reported by the Times of London and other media. 

Facebook has disputed the claims from US tax authorities seeking some $9 billion for allegedly undervaluing intellectual property assets used by the social network. 

But it noted that these assets were repatriated in July in a move which "best aligns corporate structure with where we expect to have most of our activities and people." 

Facebook says it has paid more than $11 billion globally in income tax over the past three years and that its effective tax rate over the last five years exceeds 20 percent. 

The news comes amid stalled negotiations on a new global tax treaty which would allocate profits of multinational firms including tech giants and efforts by some countries to unilaterally impose digital taxes based on revenues. 

In November, some 75 major tech players, including Google and Facebook, backed a French initiative committing them to making a "fair tax contribution" in countries where they operate.

Related Article:

Google to stop using ‘double Irish, Dutch sandwich’ tax dodge: Reuters

Google to stop using ‘double Irish, Dutch sandwich’ tax dodge: Reuters

DutchNews, January 2, 2020 

Photo: Depositphotos.com

Google parent Alphabet is to stop using an intellectual property licensing loophole, known as the ‘Double Irish, Dutch sandwich’, which allowed it to cut its global tax bill, Reuters reports. 

The strategy involves companies moving money from an Irish subsidiary to a Dutch holding company and then back to an Irish holding company located in Bermuda with licensing rights to Google intellectual property. 

Because Bermuda has no corporate income tax it was lucrative for Google to report income there, effectively delaying tax payment on international earnings to the US for years while paying a lower tax rate in Europe. 

After pressure from the EU and the US Ireland closed the loopholes in 2014 and companies were given until 2020 to comply with new tax regulations. 

Dutch filings at the Chamber of Commerce and seen by Reuters showed that in 2018 Google moved €21.8bn through its Dutch holding company to Bermuda, up from €19.9bn in 2017. 

Reuters said the filing did not give a definite end date but that Google management expected the termination to take place ‘as of 31 December 2019 or during 2020′. 

The scheme was in place for over a decade and allowed the tech giant to cut its tax bill by hundreds of billions of euros, the Guardian estimates. 

The Netherlands does not currently tax royalties, but is planning to change this as part of a package of measures to crack down on tax evasion in 2021. 

Some 10,000 shell, or letter-box, companies are based in the Netherlands and are primarily used to shift corporate earnings and obscure ownership. Google has used its Dutch affiliate to move money since 2004.

US tech futurist Andrew Yang, upending 2020 White House race

MSN – AFP, 1 September 2019

ALEX EDELMAN US tech entrepreneur Andrew Yang, the son of Taiwanese immigrants,
has gone from virtual unknown to one of the 10 Democratic hopefuls who made the
stage for the party's third presidential debate, set for September 12, 2019

Tech entrepreneur Andrew Yang may not become the next US president, but the clear-headed futurist has mounted a surprisingly vigorous White House bid centered around his plan for universal basic income.

For the past year, the son of Taiwanese immigrants has crisscrossed early voting states like Iowa, calmly but convincingly telling whoever will listen that the automating away of some four million jobs in America's heartland helped elect President Donald Trump.

Yang's message is part dark warning -- the rise of the machines is real -- and part clarion call for solutions to cushion the blow in an era of massive transformational change.

His campaign has gone from a long slog convincing skeptical voters about his pledge to provide every American adult with $1,000 a month, to a solid run for the Democratic nomination that few saw coming, and which puts him in the next nationally televised debate with nine other Democrats.

Yang, 44, has seen his crowds, once numbering a few dozen people or fewer, nudge into the hundreds, sometimes 1,000-plus, and readily sits for interviews with conservative commentators, leading to broad cross-party exposure.

While he has described himself as the opposite of Trump -- "an Asian guy who likes math" -- he is eager to woo Trump supporters, especially working-class white men anxious about their diminishing socioeconomic status.

Come September 12, Yang will be the only non-politician on the debate stage, standing alongside political giants like former vice president Joe Biden and Senator Bernie Sanders.

People have taken notice, including SpaceX and Tesla Motors founder Elon Musk.

"I support Yang," Musk tweeted August 10, a succinct seeming presidential endorsement from a highly visible global entrepreneur.

Yang, whose go-to outfit is a sport coat, dress shirt and no tie, has never held elected office. He is relaxed and direct, a skilled explainer beholden to no political camp.

One year ago he was a political nobody. By February he was the novelty candidate. Today he is outpolling three sitting US senators, a current and former congressman, and the mayor of New York.

"People started catching on to the fact that I was proposing solutions, not sound bites, and that we can actually start solving the problems on the ground," Yang told AFP in Iowa at a Democratic dinner.

"I'm identifying things that politicians only occasionally pay lip service to," like rising rates of suicide and depression, and declining US life expectancy.

His campaign raised more than $1 million from small donors in nine days following the second debate July 31.

Yang gang

The unlikely nature of Yang's candidacy -- "Random Man Runs for President," read one magazine cover -- has only elevated his stature.

"Once they hear about him... they love him," said Tom Krumins, a 25-year-old in South Carolina who once worked for Venture For America, the Yang-founded non-profit training thousands of young professionals to work for US start-ups.

"As that support continues to grow and as he continues to build his visibility online and in-person presence, he's going to take it by storm."

Yang has released several dozen policy prescriptions, including an ambitious $5 trillion outline to battle climate change.

But his signature plan provides every American 18 and over with a $1,000 monthly "freedom dividend," no strings attached, to counter automation pressures which he says could cause one third of all Americans to lose their jobs in the next 12 years.

Republicans blast the proposal as socialism. But Yang notes that a version of universal basic income has long been in place in conservative-leaning Alaska, where residents get government checks, funded by state oil revenues.

He says his dividend could be funded through consolidating certain welfare programs, implementing a value-added tax, and hiking taxes on top earners.

Not everyone is sold, including the liberal Sanders, who said he prefers a federal jobs guarantee.

"I think most people want to work," Sanders told Hill TV this week. "Part of our humanity is when we are productive members of our society."

Other party rivals have ignored Yang, even as he presented sharp answers in the second debate, when he warned that "wall-to-wall robots," not undocumented workers, were stealing away US jobs.

"Immigrants are being scapegoated for issues they have nothing to do with in our economy," he said.

But he raised eyebrows when he bleakly pronounced: "We are 10 years too late" to confront climate change.

G7 ministers agree plan on digital tax but more work ahead

Yahoo – AFP, Stuart WILLIAMS, July 18, 2019

G7 ministers reached consensus on steps towards taxing the digital giants amid
differences between the US and France and Britain. (AFP Photo/ERIC PIERMONT)

Chantilly (France) (AFP) - Ministers from G7 top economies on Thursday reached consensus on steps towards an accord on taxing digital giants, an issue that has divided the United States and its allies Britain and France.

French Finance Minister Bruno Le Maire, who hosted the two-day meeting in Chantilly outside Paris, hailed the consensus as unprecedented, although US Treasury Secretary Steven Mnuchin insisted there was more work to be done.

The French parliament this month passed a law that would tax digital giants for income amassed inside a country even if their headquarters are elsewhere, a move the United States complained discriminated against US firms like Google, Apple, Facebook and Amazon.

Britain has announced plans for a similar tax and the G7 meeting in the tranquil French town -- usually famed for its horses rather than horsetrading -- was dominated by tough talks to find some common ground.

Le Maire said finance ministers and central bankers had reached an agreement "to tax activities without physical presence, in particular digital activities."

"This is the first time that G7 members agree in principle on this," he told reporters.

'Minimum tax'

France issued a statement saying the G7 had agreed a two-pronged solution -- confirming the principle of companies being able to accrue revenues outside their legal base but also on a minimum tax to be agreed internationally for their activities.

Ministers "fully supported a two-pillar solution to be adopted by 2020", the statement said.

"Ministers agreed that a minimum level of effective taxation... would contribute to ensuring that companies pay their fair share of tax," it said.

A French official, who asked not to be named, said the tax rate would have to be agreed in the future.

Forecasts for revenue the French government expects from its tax on tech 

giants, which it has said it will drop if an international deal is implemented

(AFP Photo/Thomas SAINT-CRICQ)

German Finance Minister Olaf Scholz said he was happy with the "progress" achieved and in particular with the reference to the minimum tax level in the final statement.

Further talks would now be needed in the wider context of the G20 group of top economies for an international agreement which would be overseen by the Organisation for Economic Cooperation and Development (OECD).

Scholz expressed hope that a full international consensus could be reached next year under the OECD.

'Step forward'

The French parliament's move infuriated President Donald Trump and the US had announced an unprecedented probe against France which could trigger the imposition of tariffs.

Mnuchin struck a slightly more cautious tone than his French counterpart Le Maire while making clear he was well satisfied with the talks.

"We made some significant progress at this meeting, there is more work to be done," Mnuchin told reporters, adding that ministers had made a "big step in the right direction".

He said the United States has "significant concerns" with the French law and planned British legislation and was pleased that both Paris and London would dump the domestic laws if an international agreement was forged.

"Everyone here wants to reach an acceptable international solution," said Mnuchin. "Creating certainty for global multinationals is very important," he added.

Tim Wach, managing director of global tax consultants Taxand, described the progress as "highly encouraging" and "significant steps" in building a fairer tax system.

“The G7 must avoid conflicting regimes across different countries," he said.

'Warning on Libra'

The G7 ministers had far less trouble agreeing a position on new cryptocurrencies such as Facebook's Libra, saying such new and untested digital money risked destabilising the international monetary system and were not ready to be implemented.

"They agreed that projects such as Libra may affect monetary sovereignty and the functioning of the international monetary system," the French statement said.

The other key issue at the meeting was finding a replacement for Christine Lagarde, who has led the International Monetary Fund since 2011 but has resigned to become head of the European Central Bank.

Le Maire's European colleagues at the G7 have decided he should lead the search for a candidate from Europe, although no shortlist has been fixed yet, said a European official.

Scientific journals have to tear down paywall; open access for all

DutchNews, September 4, 2018

Photo: Depositphotos.com

From 2020 all scientific papers resulting from publicly funded research in the Netherlands will be freely available for anyone to read. Eleven countries have signed up for the new rule which was developed by Science Europe, a group of heads of national research funding organisations and the EC European Political Strategy Centre. 

Plan S, of which the Netherlands has been one of the most vocal supporters, may effectively put scientific journals, which depend on hefty subscription fees and paywalls, out of business. 

In the Netherlands alone universities wishing to stay up to speed with the latest scientific developments are paying some €40m a year, the Volkskrant said. 

From January 2020 publicly funded research papers can only be published on open access platforms or open access journals which agree to one-off bill for editing and publishing costs. 

Prestigious journals, such as Nature and Science, already offer scientists the possibility to buy out their papers and put them on line for free. ‘This was a hybrid model that was only supposed to be temporary. But publishers are continuing to do it and we want to put an end to it,’ research funding organisation NOW spokesman Stan Gielen told the paper. 

The EU also wants to change the way science is valued and says scientific work should no longer be judged by the journal it is published in. ‘We want to stop looking at where it was published and start looking at what has been published,’ Gielen said.

Amazon blocks Australia from global sites over tax

Yahoo – AFP, 31 May 2018

Amazon said Australian shoppers wanting to use its global platforms will
instead be directed to its smaller Australian site

US internet giant Amazon will block Australian shoppers from its international websites to counter new tax laws on online purchases, it announced Thursday.

New rules require internet retailers like the American behemoth to collect a 10 percent goods and services tax on everything bought from overseas sites from July 1, including under the current tax-free threshold of Aus$1,000 (US$760).

As a result, Amazon said Australian shoppers wanting to use its global platforms will instead be directed to its smaller Australian site, which offers much less for sale.

Amazon reportedly baulked at the massive administrative burden of tracking GST from all overseas transactions.

"While we regret any inconvenience this may cause customers, we have had to assess the workability of the legislation as a global business with multiple international sites," it said in a statement.

The retailer said it would compensate by opening a "global store" for Australians, adding an extra four million items previously available only on its American website.

"This will allow us to provide our customers with continued access to (our) international selection and remain compliant with the law," it said.

But even with the changes, the number of products available will be a fraction of what's on sale globally.

The new tax rules were brought in after years of lobbying by struggling local retailers, which have to apply GST to all online and store sales,

Low consumer confidence and tepid wage growth have also hit traditional brick and mortar retail operations.

Amazon only launched a local Australian site last December, shipping from a warehouse in Melbourne with another planned in Sydney.

It had around Aus$1 billion in sales from Australia annually through shipping from overseas ahead of the launch, according to Morgan Stanley analysts.

Treasurer Scott Morrison said the new laws "level the playing field for Australian businesses".

"The government doesn't apologise for ensuring multinationals pay a fair amount of tax here in Australia," he said.

Related Article:

EU aims to tax internet giants at 'two to six percent': France

EU aims to tax internet giants at 'two to six percent': France

Yahoo – AFP, March 4, 2018

The tax-avoidance strategies used by Google, Amazon, Facebook and Apple have
cost governments around the world as much as $240 billion a year in lost revenue,
according to the OECD (AFP Photo/Damien MEYER)

Paris (AFP) - The EU will soon unveil a plan for taxing major internet companies like Amazon and Facebook by imposing a levy of two to six percent on revenues in every country where they operate, French finance minister Bruno Le Maire said Sunday.

"The range will be from two to six percent; but closer to two than to six," Le Maire told the Journal du Dimanche newspaper.

The European Commission has said it will present by end March an overhaul of its tax rules, which currently allow US digital economy giants to report their income from across the bloc in any member state.

That leads them to pick low-tax nations like Ireland, the Netherlands or Luxembourg, depriving other nations of their share of the revenue even though they may account for more of a company's earnings.

"The heads of these companies know themselves that this system can't continue," Le Maire said.

Critics say the tax-avoidance strategies used by the tech titans known as GAFA -- Google, Amazon, Facebook and Apple -- deprive EU governments of billions of euros while giving them an unfair advantage over smaller rivals.

The Organisation for Economic Cooperation and Development says such strategies cost governments around the world as much as $240 billion (195 billion euros) a year in lost revenue, according to a 2015 estimate.

Asked if the proposed rate might be criticised as too low, Le Maire said: "I would rather have a law that can be implemented quickly instead of drawn-out negotiations."

American tech giants appear to believe the European tax revamp is in the cards, with several already announcing pledges to pay more in each country where they operate as governments step up their fiscal demands.

Amazon said last month that it had settled a major tax claim in France and that it would start declaring all its earnings in the country.

Gates says billionaires should pay 'significantly' more taxes

Yahoo – AFP, February 19, 2018

Microsoft co-founder Bill Gates says billionaires should pay
"significantly" more in taxes (AFP Photo/Etienne LAURENT)

Washington (AFP) - Bill Gates says he has paid more than $10 billion in taxes over a lifetime but billionaires like him should pay "significantly" more because they benefit more from the system.

The Microsoft co-founder, the world's second richest man after Amazon's Jeff Bezos, was critical of a recent US tax overhaul that slashed corporate taxes and lowered the top bracket for individual income.

"I've paid more taxes, over $10 billion, than anyone else, but the government should require the people in my position to pay significantly higher taxes," he said in an interview Sunday with CNN.

He said the tax overhaul passed in December favors the rich despite Republican claims it will help the middle and working classes.

"People who are wealthier tended to get dramatically more benefits than the middle class or those who are poor, and so it runs counter to the general trend you'd like to see, where the safety net is getting stronger and those at the top are paying higher taxes," he said.

With a sixth of the US population living in what he called "disappointing" conditions, he said US policymakers need to think about rising inequality and ask, "Why aren't we doing a better job for those people?"

Amazon makes French tax deal as tide turns against web giants

Yahoo – AFP, Joseph Schmid, 5 February 2018

US online shopping giant Amazon said it has struck a deal with the French
 government to settle a bill for nearly 200 million euros ($249 million) in unpaid taxes

US online retailer Amazon said Monday that it has settled a major tax claim in France and will start declaring all its earnings in the country in a response to building European pressure on the digital economy giants.

Amazon did not reveal how much it had paid over a French claim for nearly 200 million euros ($249 million) covering the period from 2006 to 2010.

It is one of several American technology giants in the line of fire in Europe over their tax-avoidance strategies, which often sees them route their income through low-tax nations -- in Amazon's case, Luxembourg.

French President Emmanuel Macron has proposed a new mechanism for taxing US tech companies that would take into account the volume of sales generated in each European country, rather than on the profits that are booked through low-tax jurisdictions.

Amazon announced a similar tax settlement deal with Italy in December, paying 100 million euros to settle an investigation into suspected tax evasion from 2011 to 2015, while also agreeing to declare its income locally.

In 2012, Amazon revealed that it had been hit with a 198-million-euro tax bill in France for back taxes, interest and penalties relating to income spread between different jurisdictions.

At the time, the company had said it disagreed with the French assessment and vowed to "vigorously" fight it.

In its statement Monday, Amazon said it had created a French subsidiary for its European operations in August 2015, "with all retail revenues, expenses, profits and taxes due now accounted for in France."

The retailer also said it had invested over 2 billion euros in France since 2010, creating more than 5,500 jobs.

'Electroshock' plan

European officials have vowed to make the digital economy giants known as GAFA -- Google, Amazon, Facebook and Apple -- pay a greater share of their taxes in the countries where they earn their profits.

Under current EU law, companies based outside the bloc can declare their earnings from across the 28-nation market in a single country.

That has led them to pick low-tax nations like Ireland, the Netherlands or Luxembourg -- depriving other member states of revenues, even though they may account for a bigger share of the earnings.

The Organisation for Economic Cooperation and Development says such rules cost governments around the world as much as $240 billion (193 billion euros) a year in lost revenue, according to a 2015 estimate.

On Sunday, EU Economic Affairs Commissioner Pierre Moscovici said he would unveil by the end of March a plan to "create a consensus and an electroshock" on taxing digital economy revenues.

"The idea is to be able to identify the activities of digital companies, so we need a range of indicators -- the number of clicks, the number of IP addresses, advertising, and eventually revenues... and then we'll find ways to tax them," Moscovici said.

He said the new rules would apply to the GAFA giants, as well as accommodation services like AirBnB and Booking.com.

Changes underway

American tech giants appear to believe the European tax revamp is in the cards, with several already announcing pledges to pay more in each country where they operate as governments step up their fiscal demands.

Facebook said in December that it would start declaring advertising revenue in the countries where they have offices, instead of recording it at its international headquarters in Dublin.

"We believe that moving to a local selling structure will provide more transparency to governments and policy makers around the world," the social network's financial chief Dave Wehner said at the time.

France is pursuing Google for 1.12 billion euros it says it owes in back taxes, after paying just 6.7 million euros in corporate tax for 2015 by booking most of its revenues through Ireland.

A court initially ruled that Google was not liable for the tax claim, but the government has appealed the decision -- while saying it was still open to a settlement.

The search giant has already agreed to fiscal deals with Britain and Italy over the Irish tax arrangement.

Amazon's settlement comes as it is also facing a court case in France over claims it has abused its dominant position on its "marketplace" platform for third-party vendors.

The finance ministry said in December that it was seeking a fine of about 10 million euros.

Related Article:

In tax shift, Facebook to declare ad revenues locally

Paris prosecutors probe Apple over 'planned obsolescence'

Yahoo – AFP, 8 January 2018

Apple admitted that it intentionally slowed down older models of its iPhones over time

Paris prosecutors have launched a probe of US tech giant Apple over suspected "planned obsolescence" in some of its iPhone models, a judicial source told AFP on Monday.

It comes after a complaint by the association Stop Planned Obsolescence (HOP or Halte a l'Obsolescence Programmee) that followed Apple's admission last month that it intentionally slowed down older models of its iPhones over time.

The investigation was opened on Friday and is being led by anti-trust and consumer protection specialists in the French economy ministry.

When contacted by AFP, Apple France gave no comment on the matter.

Planned obsolescence is a widely criticised commercial practice in which manufacturers build in the expiry of their products so that consumers will be forced to replace them.

It is decried by consumer groups as being unethical and is suspected of being particularly prevalent in the electronics industry, which produces mountains of unrecyclable waste each year

To tackle the problem, France passed landmark legislation in 2015 known as "Hamon's law" which made the practice illegal and -- in theory -- obliged retailers to say whether replacement parts were available.

The law, named after former Socialist minister Benoit Hamon, stipulates that a company found to be deliberately shortening the life of its products can be fined up to five percent of its annual sales while executives can face up to two years in jail.

Activists of the Association for the Taxation of Financial Transactions and Citizen's 

Action stand outside an Apple Store during a protest against tax evasion in 

December 2017 in Marseille, southern France

'Wide-scale tax evasion'

Last month Apple confirmed what critics had suspected for years: that it intentionally slows performance of older iPhones as their batteries weaken with age.

The company said this was to extend the performance of the phone, which uses less power when running at slower speeds, and was to prevent unexpected shutdowns due to a low battery charge.

It denied incorporating planned obsolescence.

However in late December the company issued an apology for slowing older models and said it would discount replacement batteries for some handsets.

"We know that some of you feel Apple has let you down. We apologize," Apple said in a message to customers on its website on December 28.

"We've always wanted our customers to be able to use their iPhones as long as possible. We're proud that Apple products are known for their durability, and for holding their value longer than our competitors' devices."

Critics have accused Apple of nudging iPhone users to upgrade to newer models by letting them think it was the handsets that needed replacing, rather than just the battery.

HOP believes Apple could be liable for a fine in line with the value of all of its iPhone sales in France since Hamon's law came into force on August 17, 2015.

The California-based group also faces a class-action suit in the United States.

In another headache for Apple in France, the company announced last week that it has filed a lawsuit against the Attac activist group after about 100 of its supporters occupied the tech giant's flagship store in Paris last month, protesting alleged "wide-scale tax evasion" by the firm.

French prosecutors have also launched a probe into Japanese printer maker Epson for alleged planned obsolescence in its products.

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"Wild Cards" (3) - Nov 19 - 20, 2016 (Kryon Channelling by Lee Carroll)- (Text version)

"...Then there was Steve Jobs. He was a wild card. What he did had little to do with technology, for that would have happened anyway soon enough. Instead, it had to do with the paradigm of the business of music on Earth. He freed it, and the paradigm of how music is obtained and heard will never be the same. However, Steve Jobs did basically one thing for all of you, and then he died. Do you see any kind of connecting of the dots to some of the inventors who come and give you the one thing, then leave? If he had lived, would there be more? Yes, but you’re not ready for it. Consciousness has to support what happens.  ...."

In tax shift, Facebook to declare ad revenues locally

Yahoo – AFP, December 13, 2017

The social networking giant said the move was in response to pressure from
governments and policy makers for greater visibility into sales made in
their countries (AFP Photo/LOIC VENANCE)

New York (AFP) - Facebook, in a bow to transparency, has announced it plans to declare certain ad revenues in the country where they are made and not in Ireland, where it has a greater tax advantage.

The social networking giant said the move was in response to pressure from governments and policy makers for greater visibility into sales made in their countries.

"In simple terms, this means that advertising revenue supported by our local teams will no longer be recorded by our international headquarters in Dublin, but will instead be recorded by our local company in that country," Dave Wehner, Facebook's chief financial officer, said in a statement released Tuesday.

He said the changes in tax reporting would be made by mid-2019 in countries where Facebook has an office supporting advertisers.

Rules for corporate taxes, as conceived for traditional economic activity, are based on the principle of "permanent establishment".

To be taxed, a company must have a physical presence in a country, but digital enterprises can offer their services over the Internet from a country of their choice, like Ireland, which offers Facebook tax advantages.

Facebook's taxes on ad revenues in 2015 were minimal in France and Germany, but amounted to nearly 7.9 billion euros in Ireland, where there are fewer Facebook accounts.