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 reverses course, won't ban lab virus theory

Yahoo – AFP, Rob Lever, May 27, 2021 

Facebook has reversed its policy banning posts suggesting Covid-19 emerged from a laboratory amid renewed debate over the origins of the virus, raising fresh questions about social media's role in policing misinformation. 

The latest move by Facebook, announced late Wednesday on its website, highlights the challenge for the world's largest social network of rooting out false and potentially harmful content while remaining open for discourse. 

"In light of ongoing investigations into the origin of Covid-19 and in consultation with public health experts, we will no longer remove the claim that Covid-19 is man-made or manufactured from our apps," the statement said. 

"We're continuing to work with health experts to keep pace with the evolving nature of the pandemic and regularly update our policies as new facts and trends emerge." 

The new statement updates guidance from Facebook in February when it said it would remove false or debunked claims about the novel coronavirus which created a global pandemic killing more than three million. 

The move followed President Joe Biden's directive to US intelligence agencies to investigate competing theories on how the virus first emerged -- through animal contact at a market in Wuhan, China, or through accidental release from a research laboratory in the same city. 

Biden's order signals an escalation in mounting controversy over the origins of the virus. 

The natural origin hypothesis holds that it emerged in bats then passed to humans, likely via an intermediary species. 

This theory was widely accepted at the start of the pandemic, but as time has worn on, scientists have not found a virus in either bats or another animal that matches the genetic signature of SARS-CoV-2. 

The lab-leak theory, meanwhile, is gaining increasing traction in the United States, where it was initially fueled by former president Donald Trump and his aides and dismissed by many as a political talking point. 

A recent Wall Street Journal report, citing US intelligence findings, said three researchers from China's Wuhan Institute of Virology became sick in November 2019, a month before Beijing disclosed the existence of a mysterious pneumonia outbreak. 

Pushback from the right 

Facebook's move, which could impact what some three billion users of its family of apps see, highlights the controversy over social media's aggressive efforts to root out misinformation on topics where facts may be evolving. 

The reversal may be "another exhibit for the possibility that there will be a swing back against the more heavy-handed moderation," tweeted Evelyn Douek, a Harvard University lecturer and researcher of online speech regulation. 

"When the pandemic started, there were many arguments that 'what platforms are doing for health misinfo, they should do for all misinfo all the time.' It was over-simplified then, and strikes me as untenable now." 

Facebook uses independent third-party fact checkers, including AFP, to debunk misinformation. Although the origins of the virus remain unproven, the lab leak theory has been subject to fact-checking. 

One fact checking organization, PolitiFact, reported last September that public health authorities had "repeatedly said the coronavirus was not derived from a lab" but earlier this month revised its guidance, noting: "that assertion is now more widely disputed," and saying it would continue to review the matter. 

The abrupt Facebook reversal prompted angry responses from conservatives and Trump supporters. 

"Wow! But they did suppress the story for a year, defaming Trump and Republicans for a 'conspiracy theory' blacklisting conservative press and banning us," tweeted Kelly Sadler, a blogger and former Trump aide. 

But Rebekah Tromble, director of Institute for Data, Democracy & Politics at George Washington University, said Facebook "is doing the right thing" by updating its guidance. 

"Information changes over time, and responsible organizations -- social media outlets and fact-checkers alike -- make decisions based on the best information available but remain open and willing to change their evaluations as new information arises," Tromble told AFP. 

"Facebook will undoubtedly receive blowback for this decision, as will fact-checkers. But that blowback will come from the same people and groups that have always been critical." 

Facebook in a separate statement said it was stepping up its efforts to curb misinformation by limiting the reach of users who "repeatedly" share false content. 

Until now, Facebook had only taken this action on individual posts, but now will clamp down on the users who are the largest spreaders of false content.

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Microsoft pledges to store European cloud data in Europe

Yahoo – AFP, May 6, 2021 

Microsoft's European clients have long been concerned over the legal status
of data they store with US companies in the cloud and the extent to which
they could be scrutinised by US authorities. 

US tech giant Microsoft on Thursday pledged to store all European cloud-based client data in Europe amid unease on the continent over the reach of US legislation on personal data collection. 

Microsoft's European clients have long been concerned over the legal status of data they store with US companies in the cloud and the extent to which they could be scrutinised by US authorities. 

Those worries came to a head last July when the European Court of Justice struck down the EU-US Privacy Shield, a framework allowing firms to transfer personal data to the United States in compliance with Brussels' General Data Protection Regulation. 

The court found the mechanism did not adequately protect EU data from US authorities over which Europe has neither control nor right of redress. 

In a blog post on Thursday, Microsoft president Brad Smith said: "If you are a commercial or public sector customer in the EU, we will go beyond our existing data storage commitments and enable you to process and store all your data in the EU. 

"In other words, we will not need to move your data outside the EU." 

He said the commitment -- dubbed the EU Data Boundary for the Microsoft Cloud -- would apply across all of Microsoft's core cloud services -– Azure, Microsoft 365, and Dynamics 365 and would take effect by the end of next year.

Bill and Melinda Gates announce divorce after 27 years

France24 – AFP, 3 May 2021 

Bill and Melinda Gates, pictured here in 2018, said they intend to keep
working together on their charitable foundation Ludovic MARIN AFP/File

Washington (AFP) - Microsoft founder Bill Gates and his wife and fellow philanthropist Melinda announced on Monday they are divorcing after a 27-year marriage. 

The announcement from one of the world's wealthiest couples, with an estimated net worth of some $130 billion, was made in a joint statement on Twitter. 

"After a great deal of thought and a lot of work on our relationship, we have made the decision to end our marriage," they said. 

The statement said they would continue their joint work on the Bill & Melinda Gates Foundation, the massive charity which funds programs in global health, gender equality, education and other causes. 

"We continue to share a belief in that mission and will continue our work together at the foundation, but we no longer believe we can grow together as a couple in this next phase of our lives." 

The announcement comes two years after the divorce of Amazon founder Jeff Bezos, another of the world's wealthiest people, and his wife MacKenzie. 

Bill Gates, 65, was a geeky teenager when he started what would become the world's most valuable company, and was for a time the world's richest man and most prominent philanthropist. 

He stepped down as Microsoft chief executive in 2008 to devote more time to philanthropy and later left the board, keeping only the title of "founder and technology advisor." 

Melinda Gates, 56, married her husband in 1994 when she was working at the tech firm. They have three children together.

A Multinode Quantum Network explained

 

YouTube Shorts eyes TikTok competition with 3.5 bn daily views in India

Yahoo – AFP, 27 January 2021 

YouTube Shorts are a new feature on the video-sharing site meant to
compete with TikTok

YouTube Shorts -- the video-sharing website's quick clips meant to compete with TikTok -- are racking up 3.5 billion views a day during beta testing in India, the platform's head said Tuesday. 

Susan Wojcikci explained the feature in a note laying out her 2021 priorities. 

"So far, videos in our new Shorts player - which helps people around the world watch short videos on YouTube - are receiving an impressive 3.5 billion daily views!" she said. 

"We’re looking forward to expanding Shorts to more markets this year." 

YouTube, a subsidiary of Google, unveiled Shorts in mid-September, describing the videos as "a new way to express yourself in 15 seconds or less." 

The feature, directly integrated into the existing YouTube interface, is currently only available in India as part of development work. 

The new format is seen as a way for Google to compete with Gen Z-favorite TikTok, which currently has 700 million users worldwide. 

Former president Donald Trump had threatened to ban TikTok -- owned by Chinese group ByteDance -- from the United States when he accused the company, without formal proof, of spying on behalf of Beijing. 

Facebook-owned Instagram responded to TikTok's popularity with their own short video format called Reels last August. 

And in November, Snapchat launched Spotlight, a public feed of content produced by users.

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.

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Chinese citizen journalist jailed for Wuhan virus reporting

Yahoo – AFP, 28 December 2020 

Authoroties said former Chinese lawyer and citizen journalist
Zhang Zhan had spread "False remarks" online.

A Chinese citizen journalist was jailed for four years Monday for her reporting from Wuhan as the Covid-19 outbreak began, her lawyer said, almost a year after details of an "unknown viral pneumonia" surfaced in the central China city. 

Zhang Zhan, a former lawyer who arrived at court in a wheelchair, was sentenced at a brief hearing in a Shanghai court for allegedly "picking quarrels and provoking trouble" during her reporting in the chaotic initial stages of the outbreak. 

Her live reports and essays were shared on social media platforms in February, grabbing the attention of authorities, who have punished eight virus whistleblowers so far as they curb criticism of the government's response to the outbreak. 

Beijing has congratulated itself for "extraordinary" success in controlling the virus inside its borders, with an economy on the rebound while much of the rest of the world stutters through painful lockdowns and surging caseloads a year on from the start of the pandemic in Wuhan. 

Controlling the information flow during an unprecedented global health crisis has been pivotal in allowing China's communist authorities to reframe the narrative in their favour, with President Xi Jinping being garlanded for his leadership by the country's ruling party. 

But that has come at a serious cost to anyone who has picked holes in the official storyline. 

The court said Zhang Zhan had spread "false remarks" online, according to one of her lawyers Zhang Keke, but the prosecution did not fully divulge its evidence in court. 

"We had no way of understanding what exactly Zhang Zhan was accused of doing," he added, describing it as "a speedy, rushed hearing." 

In return the defendant "didn't respond [to questions]... She refused to answer when the judge asked her to confirm her identity." 

The defendant's mother sobbed loudly as the verdict was read out, Ren Quanniu, another member of Zhang's defence team, told reporters who were barred from entering the court. 

Concerns are mounting over the health of 37-year-old Zhang, who began a hunger strike in June and has been force-fed via a nasal tube. 

Her legal team said her health was in decline and she suffered from headaches, dizziness and stomach pain, and that she had appeared in court in a wheelchair. 

"She said when I visited her (last week): 'If they give me a heavy sentence then I will refuse food until the very end.'... She thinks she will die in prison," Ren said before the trial. 

"It's an extreme method of protesting against this society and this environment." 

China's communist authorities have a history of putting dissidents on trial in opaque courts between Christmas and New Year in an effort to minimise Western scrutiny. 

Example made

The sentencing comes just weeks before an international team of World Health Organization experts is expected to arrive in China to investigate the origins of Covid-19. 

Zhang was critical of the early response in Wuhan, writing in a February essay that the government "didn't give people enough information, then simply locked down the city". 

"This is a great violation of human rights," she wrote. 

Rights groups and embassies have also drawn attention to her case, although diplomats from several countries were denied requests to monitor the hearing. 

"Zhang Zhan's case raises serious concerns about media freedom in China," the British embassy in Beijing said, urging "China to release all those detained for their reporting." 

Authorities "want to use her case as an example to scare off other dissidents from raising questions about the pandemic situation in Wuhan earlier this year", added Leo Lan, research and advocacy consultant at the Chinese Human Rights Defenders NGO. 

A United Nations official following the trial also expressed "deep concern" about the verdict. 

"We raised her case with the authorities throughout 2020 as an example of the excessive clampdown on freedom of expression linked to #COVID19 & continue to call for her release," the office of the UN High Commissioner for Human Rights Michelle Bachelet said in a tweet. 

Zhang is the first of a group of four citizen journalists detained by authorities after reporting from Wuhan to face trial. 

Previous attempts by AFP to contact the other three -- Chen Qiushi, Fang Bin and Li Zehua -- were unsuccessful. 

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Private psychotherapy notes leaked in major Finnish hack

Yahoo – AFP, 26 October 2020

The confidential treatment records of tens of thousands of psychotherapy patients in Finland have been hacked and some leaked online, in what the interior minister said Monday was "a shocking act." 

Many victims of the hack reported receiving emails with a demand for 200 euros
($236) in bitcoin to prevent the contents of their discussions with therapists
being made public. (Nicolas Asfouri)

Distressed patients flooded victim support services over the weekend as Finnish police revealed hackers accessed records belonging to private company Vastaamo, which runs 25 therapy centres across Finland. 

Thousands have filed police complaints over the breach, they added. 

Many patients reported receiving emails with a demand for 200 euros ($236) in bitcoin to prevent the contents of their discussions with therapists being made public. 

"The Vastaamo data breach is a shocking act which hits all of us deep down," Interior Minister Maria Ohisalo wrote on her website on Monday. 

Finland must be a country where "help for mental health issues is available and it can be accessed without fear." 

Ministers met for crisis talks this weekend, with further emergency discussions tabled for the coming week over the unprecedented data breach. 

"We are investigating an aggravated security breach and aggravated extortion, among other charges," Robin Lardot, the director of Finland's National Bureau of Investigation, told a news conference at the weekend. 

Lardot added that they believed the number of patients whose records had been compromised numbered in the tens of thousands. 

On Monday evening, Vastaamo said it had fired its CEO, Ville Tapio, after an internal enquiry discovered that he had concealed a March 2019 data breach from the board and the firm's parent company. 

The firm admitted flaws in the security of its customer data, "which allowed criminals to break into the database up until March 2019," Vastaamo said in a statement. 

The company's owner, PTK Midco Oy, on Monday launched court proceedings "in relation to its May 2019 purchase of Vastaamo," the statement added. 

'Justifiably worried' 

Security experts reported that a 10-gigabyte data file containing private notes between at least 2,000 patients and their therapists had appeared on websites on the so-called dark web. 

The hack, which targeted some of society's most vulnerable including children, has caused widespread shock in the Nordic country of 5.5 million, with ministers gathering on Sunday to discuss how to support the patients whose sensitive data had been leaked. 

"It is absolutely clear that people are justifiably worried not only about their own security and health but that of their close ones, too," Ohisalo told reporters late on Sunday. 

On Monday, authorities launched a website for victims of the cyberattack, offering advice and telling them not to pay the ransom demand. 

"Do not communicate with the extortionist, the data have most likely already been leaked elsewhere," the "Data Leak Help" site said. 

Mental health and victim support charities reported being overwhelmed with calls from distressed people fearing that their intimate conversations with their therapists would be publicly released. 

Nothing 'to be ashamed of' 

One of the recipients of a blackmail threat, the former MP Kirsi Piha, tweeted a screenshot of the ransom message along with a defiant reply to the hackers. 

"Up yours! Seeking help is never something to be ashamed of," Piha wrote. 

"I've seen a lot, but I haven't seen this," Mikko Hypponen, chief research officer at data security firm F-Secure said in a statement. 

"I don't think there's a crime in our criminal history which would have more victims than this one." 

Hypponen, an internationally renowned cybersecurity specialist, said the perpetrator used the alias "ransom_man", and said he was only aware of one other patient blackmail case, where a cosmetic surgery clinic in Florida had a smaller amount of data stolen in 2019. 

On Monday, Finland's social care regulator said in a statement it was investigating Vastaamo's practices, including how well patients were kept informed of the breach. 

Meanwhile, the head of the state digital services agency DVV, Kimmo Rousku, said that the cyberattack could have been avoided if Vastaamo had used better encryption. 

DVV published a checklist on Monday for firms to make sure their digital security is in order. 

"Management needs to wake up," Rousku told public broadcaster Yle. 

A phone line offering legal advice had also been set up, the country's consumer authority announced.

EncroChat messages reveal at least ten cases of ‘bent coppers’ leaking info

DutchNews, September 17, 2020 

The investigation into millions of messages between criminals via encrypted service provider EncroChat has also yielded proof of police corruption and a special team has been tasked with the prosecution of the officers involved, police havesaid. 

Officials have not yet said how many police officers are involved and at what level, but at least two have been arrested following the EncroChat operation. 

Sources cited by the Telegraaf  say 10 serious cases involving the leak of information to criminals are currently being investigated. The search also yielded information about a network of lawyers, real estate brokers and notaries whose services helped criminals launder money, they said. 

Police did confirm information had been leaked to criminals but would not say more for operational reasons.  The sheer volume of messages – over 20 million – that have to be followed up must be dealt with meticulously to avoid false claims of corruption, police said. 

However, the first signs are serious enough to warrant a special team, police chief Henk van Essen said. ‘We have started a number of prosecutions and more will follow. The information on drug deals and money laundering as well as the corruption in the force have been given the highest priority.’ 

Van Essen said that there have always been ‘bent coppers’ but the fact that their number is increasing is worrying. 

‘A policeman can become corrupt through blackmail but can also simply be bought,’ Van Essen said. ‘Information is a goldmine for criminals. It can be anything from information on current investigations and people to addresses and cars. They are always on the lookout for people with access to this type of information, not only in the force but in companies as well.’ 

Software to flag up suspicious search behaviour by officers will be introduced next year, Van Essen said. ‘But we don’t want to check each and every email or app. We want a system built on trust but we must be realistic. There is corruption and we want to stamp it out. And an operation like EncroChat shows that no one is beyond the reach of the law.’

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Dutch detectives unravel 3.6 million encrypted emailssent by criminals