Switzerland wants to end the exploitation of its banking system The Treasury has struck a deal with the Swiss government to repatriate unpaid British taxes from private bank accounts and end the exploitation of the country’s secretive banking system. Switzerland has agreed to make a one-off deduction from all existing accounts held by people who are liable for British taxes but have not paid them. The tax grab could raise as much as £5bn for the Treasury and will be applied in 2013. The Swiss are giving Britain 500m Swiss francs (£384m) up front as a gesture of goodwill. From 2013 onwards, the Swiss government and banks have jointly agreed to apply a new “withholding” tax on behalf of the British government of 48% on investments and 27% on gains where the records show the person is liable for unpaid British taxes, effectively ending the country’s reputation as a tax haven. The deal will mean that the Swiss government and banks will identify accounts held by British taxpayers acting on information from HMRC, withhold the funds and return them to the UK. HMRC will never see the details of the accounts, but if people want to challenge a payment they will be expected to disclose them to UK tax inspectors. George Osborne said that the days when people could “stash the profits of tax evasion” in Switzerland were over. However, campaigners against tax evasion said that it would mean that people would be offered discounted rates of tax in Switzerland compared with the UK; that the Swiss had retained most of the secrecy in the system which they will operate and that it could undermine a more ambitious EU-wide deal that is still being negotiated. Richard Murphy, director of Tax Research UK, said: “It’s an appalling deal for the UK, an appalling deal for Europe. The one-off tax of 34% is much lower than they would have paid in the UK and in fines for avoiding it. This government is deliberately letting these people off. All those people who have been honest and paid their taxes are now saying ‘why did I bother?’ “The Swiss will not pass over the details from the British accounts. The UK will never know who these people are unless they decide to disclose their details and challenge the payments. We have now outsourced British tax justice to the Swiss, who to date have done their utmost to avoid this. We’ve also given them a competitive advantage over British banks with lower tax rates.” John Christensen, director of Tax Justice, said: “This sets back European-wide attempts to create a proper framework for information exchange and Britain and Germany have done disservice to the rest of the world because this maintains Swiss secrecy. This is a shabby deal.” The Treasury said that the rates of the withholding tax had been set slightly lower than the normal British ones to account for the fact that deductions will take effect sooner than would happen under the British tax system and that the one-off tax rate accounted for the fact that the taxpayer wouldn’t have to fund lengthy investigations to recoup the money. Treasury insiders acknowledged that the negotiations with the Swiss system had been “painstaking” and, at times, “delicate”. It follows shortly after a similar deal was struck between the Swiss and the Germans, which is almost identical apart from the upfront payment, which was nearly four times the amount. The deal will also apply to people who are non-domiciled for tax purposes – they will be approached by the Swiss and given the option of either paying the one-off tax on their whole account unless they can prove that some or all of the money was from elsewhere in the world. Osborne said: “Tax evasion is wrong at the best of times, but in economic circumstances such as the present ones, it means that hard-pressed taxpayers are forced to pay even more. That is why this coalition government made it a priority to go after those who don’t pay their fair share. We will be as tough on the richest who evade tax as on those who cheat on benefits. The days when it was easy to stash the profits of tax evasion in Switzerland are over.” The Swiss Bankers Association welcomed the fact that the deal maintained account holders “financial privacy” and stressed that while the maximum rate would be 34%, the “effective” rate for most clients would be closer to between 20% and 25% of total assets. Despite suggestions that the move could bring in £5bn for the Treasury, the Swiss banks suggested it could also cost them hundreds of millions of pounds if people withdrew savings. Tax avoidance Switzerland Europe George Osborne Banking Polly Curtis guardian.co.uk
Continue reading …Lawyer representing families of deceased visited Justice Department to discuss claims reported in Daily Mirror US attorney general Eric Holder has promised relatives of victims of the 9/11 terror attacks he will begin a preliminary criminal investigation into reports that News Corporation journalists tried to gain access to the phone records of the dead. Family members who lost loved ones on 11 September 2001 met Holder at the Justice Department on Wednesday to discuss allegations first reported by the Daily Mirror that News of the World reporters attempted to gain unauthorised access to 9/11 victims’ voicemails. Norman Siegel, a lawyer representing some of the families, told reporters that the attorney general had said it was “very disturbing” that phones of 9/11 victims and their family members might have been hacked. The relatives met Holder for over an hour to discuss the allegations. The hacking allegation was made in an article in the Mirror last month. The paper said NoW journalists had approached a former New York police officer working as a private detective and asked him to do the hacking, which he declined to do. So far, no evidence has emerged to corroborate the story, which has been strenuously denied by News Corp. If the Justice Department finds any truth in the claims, News Corp would face a damaging battle with the US authorities as well as a rash of civil law suits from family members. The US authorities have considered investigating News Corp, a company listed on the US stock markets, under the Foreign Corrupt Practices Act over payments allegedly made to police . But the 9/11 allegations are the most serious issue the firm has faced in the US over the scandal. The Mirror story was based on unnamed sources, including one described as a former New York police officer who became a private investigator. Heclaimed to have rejected requests by journalists from the now closed NoW to retrieve private phone records of victims. News Corp has dismissed the report as “anonymous speculation” with “no substantiation” and said earlier this month that the company was fully co-operating with all investigations into the firm. Ahead of the meeting Siegel told Associated Press the families were working with the FBI to determine if hacking “was attempted, and/or occurred”. “We are going to the meeting with the attorney general to listen to what he can tell us about the investigation and to ascertain the scope, the goals and timetable of the inquiry,” Siegel said. Rupert Murdoch was asked about the 9/11 hacking claims when he was questioned by parliament last month. He said: “we have seen no evidence at all and as far as we know the FBI haven’t either”. He said he did not know if NoW employees or the private investigator Glenn Mulcaire took it upon themselves to do it. United States September 11 2001 Phone hacking News of the World News Corporation Rupert Murdoch Dominic Rushe guardian.co.uk
Continue reading …Click here to view this media It looks like Jack Cafferty decided to carry a little water for the AstroTurf “tea party” with a bit of fearmongering over our debt and deficit with this dishonest bit of editorializing on CNN’s The Situation Room. First of all, repeat after me Jack — there is no tea party. The so-called “tea party” is nothing more than the far right-wing of the Republican Party that’s been with us for ages now, with big monied corporate interests along with your sorry excuse for a “news” channel along with Fox promoting them. And all of your attempted re-branding here is not going to change that. And if Cafferty wants to blame the problems with our debt and deficit on the current administration, I’ve got a couple of charts and an article at the New York Times he needs to read — How the Deficit Got This Big . Here are the charts from the article. enlarge Credit: The New York Times enlarge Credit: The New York Times And here’s more from Jon Perr from last year on the drivers of our deficit — Boehner Lies About Bush Tax Cuts and Deficits . And from Jon’s post, here’s another chart for Jack Cafferty. enlarge Credit: CBPP If Jack Cafferty is really concerned about getting our fiscal house in order, he’d be going after these “tea partiers” for being obstructionists on job creation and for protecting their rich campaign donors from having to pay any more in taxes. Transcript of Cafferty’s remarks via his blog — Tea Party effect on 2012 elections? : The national debt is increasing by an astounding $3 million a minute; $3 million. Meanwhile, President Obama and Congress are on vacation. When the president took office in January 2009, the national debt was $10.6 trillion. Less than three years later, it’s $14.6 trillion. Obama has presided over the fastest, largest increase in the national debt in our country’s history, something to be truly proud of. Under President George W. Bush, the national debt increased by $4.9 trillion, but it took eight years to increase that much. Obama has the distinction of putting us an additional $4 trillion in the hole in less than three years. And he’s still talking about wanting to spend more. It’s insane. These rates of borrowing are unsustainable. It is far and away the biggest problem we may have ever been faced with. Eventually, our country’s survival will be at stake. And whether anyone likes it or not, the tea party seems to be the only group that gets it. The group became a force during the midterm elections because of the growing national debt and the refusal of Washington to do anything about it. In fact, the recent debt ceiling standoff was driven by a group of only 60 tea party members in the House of Representatives. You can bet that the tea party will continue to ring the alarm bells as we head into the 2012 elections – and it should. Because just remember this: In the time it would take you to listen to this Cafferty File segment – a minute and a half or so – our national debt increased by more than $5 million. Here’s my question to you: What effect will the tea party have on the 2012 elections?
Continue reading …Analysis of tweets during recent unrest appears to undermine the case for banning people from social networks Interactive: Twitter traffic during the riots Analysis of more than 2.5m Twitter messages relating to the riots in England has cast doubt on the rationale behind government proposals to ban people from social networks or shut down their websites in times of civil unrest. A preliminary study of a database of riot-related tweets, compiled by the Guardian, appears to show Twitter was mainly used to react to riots and looting. Timing trends drawn from the data question the assumption that Twitter played a widespread role in inciting the violence in advance, an accusation also levelled at the rival social networks Facebook and BlackBerry Messenger. The unique database contains tweets about the riots sent throughout the disorder, which began in Tottenham, north London, on 6 August. It also reveals how extensively Twitter was used to co-ordinate a movement by citizens to clean the streets after the disorder. More than 206,000 tweets – 8% of the total – related to attempts to clean up the debris left by four nights of rioting and looting. The home secretary, Theresa May, will meet representatives from Facebook, Twitter and Research in Motion, the Canada-based BlackBerry maker, on Thursday. The companies said they would warn ministers against introducing emergency measures that could usher in a new form of online censorship. Amid a growing censorship row, government sources said the home secretary did not expect to discuss closing social networks, but wanted to explore what measures the companies could take to help contain future disorder, including how law enforcement agencies can use the sites more effectively. David Cameron had previously indicated he would contemplate more restrictive measures. The day after the riots subsided, the prime minister told parliament the government was looking at banning people from using sites such as Twitter and Facebook if they were thought to be plotting criminal activity. Cameron said the government would do “whatever it takes” to restore order, adding that a review was under way to establish whether it would be right to attempt to prevent rioters from using social networks. He said he had also asked police if they needed new powers. The Metropolitan police later revealed it had considered switching off social networks during the disorder in London, but had decided not to on legal advice. The Guardian database, which contains riot-related tweets sent between midnight on 6 August – the day riots began in Tottenham – and 8pm on 17 August, will be subject to more advanced analysis in the coming weeks as part of an ongoing investigation into the riots. Twitter Social networking UK riots Internet Theresa May Paul Lewis James Ball Josh Halliday guardian.co.uk
Continue reading …Cancer survivor Jobs becomes chairman of technology company, nominating Tim Cook as his successor Steve Jobs has resigned as chief executive of Apple, to be replaced by its chief operating officer, Tim Cook, in a surprise move that may signal that the 56-year-old co-founder of the company is losing his battle with cancer. The announcement was made at about 4pm Pacific time in a statement from Apple following a letter from Jobs, who said: “I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come.” He added: “I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as chairman of the board, director and Apple employee. As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple. “I believe Apple’s brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role. I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.” In a statement on Wednesday night, Apple said that it had appointed Cook, who was recruited to the company by Jobs in 1997, and had elected Jobs chairman of the board. Apple’s shares fell by 7% in after-hours trading, as market digested the impact of Apple losing its charismatic leader, who had led it back from near-bankruptcy after rejoining in 1996 to become the world’s most valuable company by market value earlier in August. “Steve Jobs is not your typical CEO. He is both a visionary from a technology industry perspective as well as a micro-manager,” said Ashok Kumar, an analyst at Rodman and Renshaw. “To say that he is instrumental or key in the turnaround of Apple’s fortunes would be a gross understatement.” Fred Wilson, a venture capitalist, said: “I’m sad. He’s the greatest entrepreneur ever.” No reason was given for the resignation, but Jobs has been battling medical problems for the past seven years. He was diagnosed with neuroendocrine cancer of the pancreas in 2003 and operated on in July 2004. Although he returned to work within a few months, in April 2009 he received a liver transplant. Medical observers suggested that the long-term effects of the required autoimmune drugs could mean that the cancer would return. Jobs made a small number of public appearances in 2011, launching a new version of Apple’s iPad tablet, attending a dinner with US president Barack Obama and other technology chiefs, fronting the launch of new software from Apple in June and presenting plans to the Cupertino council the next day. But he looked increasingly frail and thin, which looked increasingly like the effects of a spread of the initial cancer. “Steve’s extraordinary vision and leadership saved Apple and guided it to its position as the world’s most innovative and valuable technology company,” said Art Levinson, chairman of Genentech and a member of Apple’s board. “Steve has made countless contributions to Apple’s success, and he has attracted and inspired Apple’s immensely creative employees and world class executive team. In his new role as Chairman of the Board, Steve will continue to serve Apple with his unique insights, creativity and inspiration.” Analysts – who had previously pressed Apple to publicise its CEO succession plan, without success – said that Cook was a safe pair of hands, but wondered whether the company would have the same drive. “[Tim Cook] is very highly regarded internally at Apple. From a succession perspective they could not possibly identify a better candidate. He has a track record to back it up,” said Kumar. “What Steve Jobs leaves behind is a very deep and a broad bench and so they will continue in his footsteps.” Shannon Cross of Cross Research said: “It won’t affect next the iPad or next iPhone. Apple’s product line-up is well set. Steve, keep in mind, has been training people at Apple and there is a culture at Apple that is very strong.” Steve Jobs Apple Computing Charles Arthur guardian.co.uk
Continue reading …55-year-old Apple co-founder, who has been on medical leave since January, becomes chairman as Tim Cook takes helm Steve Jobs, the chief executive officer of Apple, has resigned from his position at the technology giant he co-founded in a garage. The 55-year-old Apple co-founder and pancreatic cancer survivor has been on medical leave for an undisclosed condition since 17 January. In a statement, Apple said that Jobs had been elected chairman and that Tim Cook had been elected CEO. In his resignation letter, Jobs said: “I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come. “I hereby resign as CEO of Apple. I would like to serve, if the board sees fit, as chairman of the board, director and Apple employee. “As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple. “I believe Apple’s brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role. “I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you – Steve.” Jeffrey Fidacaro of the Susquehanna financial group said: “It’s a prudent move to name a successor that is Tim Cook. “I don’t think Wall Street will find that unexpected. It’s nice to get a succession plan in place with Steve Jobs still at the helm of the board and guiding Tim Cook.” Trading of Apple shares on Wall Street was halted after hours following the announcement. In regular trading, Apple had gained 0.7% to close at $376.18. Steve Jobs Computing Apple United States guardian.co.uk
Continue reading …Insurgent attack on British Council workers thwarted by special forces, but New Zealand SAS commando dies during rescue A turf war between Kabul’s police and SAS-trained Afghan commandos caused a potentially life-threatening delay to the operation to rescue two British Council workers penned in by suicide bombers, according to the rescue team. The standoff last Friday between the city’s police and the Crisis Response Unit (CRU), which lasted for more than four hours, gave the attackers time not just to overwhelm the fortress-like compound, but also to launch a terrifying assault on the reinforced door of the cramped safe room where the two employees of the British Council had taken refuge. According to Ghulam Daoud, leader of the commando team, the insurgents used several hand grenades in their unsuccessful attempts to blast open the door, located in a narrow area under a flight of stairs, where the two teachers had taken refugee with a security guard from the private British company G4S. “They were very well informed, they knew exactly where the strong points were and where the safe room was,” said General Sayed Abdul Ghafar, director of Afghan special forces. The two women, one British and the other South African, have not yet been named although diplomatic sources said one of them had only arrived in Afghanistan 48 hours earlier to work on the British Council’s educational and cultural programmes. They were rushed to the tiny safe room, in a building in the centre of the compound, at 5.40am under covering fire from private guards on the roof of the compound after a vehicle packed with explosives ripped through the front gate. It destroyed the double-layered “airlock” of concrete walls, metal gates and other defensive measures. A second group of terrorists, armed with bombs and guns, stormed into the compound, overwhelming the guard force of Gurkhas and Afghans employed by G4S, the giant British security company. In total 12 people, excluding the attackers, died during six hours of fierce fighting. One of the fatalities included Douglas Grant, 41, a New Zealand SAS commando who was part of the rescue team . Photographs of the devastated compound in the relatively upmarket neighbourhood of western Kabul show that the safe room had just enough space for a mattress, some cushions and bits of equipment. While the two teachers and guard were trapped inside, waiting for rescue, they were able to talk to embassy officials by mobile phone. They also had time to pin Union flags to their chests, to identify themselves clearly when the Afghan commandos arrived. But that took far longer than anyone would have hoped because of an argument over jurisdiction between different arms of the Afghan security forces. Ghafar, the special forces chief, got to the scene within 20 minutes but his team was sent away by Kabul’s police chief, General Mohammad Ayub Salangi. “We finally called back at 9.45 but in all that time the stupid policemen did not do anything,” said Ghafar. One international official said Salangi had handled the situation like an “idiot”. However, the police chief insisted that he was simply “following procedures” and claimed not to have ordered the CRU away. New Zealand SAS team At 10am, more than four hours after the attack began, the CRU team of 20 commandos, joined by five soldiers of the New Zealand SAS who rushed to the scene from their base on the other side of the city, began their assault on the compound. But their initial attempt to drive through the blasted, wrecked main gate in an armoured Humvee was repulsed by an hail of bullets that even broke the vehicle’s armoured windows. One CRU commando died there. The rescuers’ work was made even more difficult by the British Council’s own elaborate defences – including bulletproof glass on all the windows – giving insurgents strong fighting positions to hold back the rescue party. “The enemy had time to occupy all the bulletproof checkpoints [inside the compound] that we could not attack,” said Daoud, leading the CRU unit. The frontal assault strategy was abandoned. Meanwhile, the New Zealand SAS team turned their attention to the back of the compound, blowing a hole in a rear wall, and allowing the CRU commandos to storm in from a neighbouring building. Daoud confirmed that, while the CRU is a highly regarded special forces team, it does not yet have engineers trained to break through walls. When they finally got into the compound the telltale smell of “cooked kebab” showed suicide bombers had already exploded themselves, he said. New Zealand and Afghan snipers occupying positions in overlooking buildings were able to provide some cover to their colleagues from insurgents firing from their heavily defended positions on the upper floor of the guesthouse where British Council staff were hiding. But that was not enough to save Corporal Grant, a New Zealand SAS member who was shot and mortally wounded as he ran along the edge of the compound. The Afghan commandos also revealed that the three non-Afghans were removed from the building long before all the insurgents inside had been killed. There remained at least one suicide bomber still fighting upstairs, and a fire was spreading in the building, so the rescue party decided not to wait. Sniper teams were ordered to train all their fire on the area where the insurgent was still holed up, allowing three other British Council workers to move to a nearby gym, which had been made from a metal sea container. The New Zealand commandos blew up another section of wall and they escaped. The fire in the building also forced a Gurkha, who had been on the roof since the start of the siege, down from his position in the roof. But even though the foreigners were safe, the fighting still raged for control of the building with troops occasionally so close to attackers that they could punch them, said Ghafar. At one point an attacker, after being shot, managed to detonate his vest, injuring but not killing five CRU commandos. Despite the heat, fighting for several hours in the summer sun, none of the commandos was subsequently able to eat or drink because it is the fasting month of Ramadan. At the end of the operation the team went to a nearby carwash and hosed themselves down with water. Afghanistan New Zealand G4S Taliban Military Jon Boone guardian.co.uk
Continue reading …Substitute hosting on HLN's The Joy Behar Show, on Tuesday, CNN's Don Lemon prodded Jay Bakker, the son of televangelist Jim Bakker, to accuse Rick Perry and Michele Bachmann of exploiting fears of Christians as he claimed that the GOP presidential hopefuls were: “playing to a group of people who deal a lot with fear and using fear to control folks.” The dismissive Bakker then asserted: “I feel like they've kind of hijacked Christianity,” and added that he thinks the Perrys and Bachmanns were advancing “fairy tales” that global warming doesn't exist and claimed they wanted to “ignore” science. Lemon initially invited on Bakker to analyze the discussion he had with his previous guest, Randy Roberts Potts about what it was like to grow up gay in the “shadow” of his grandfather televangelist Oral Roberts. However it wasn't long before Lemon switched topics to the 2012 GOP primary race, as seen in this exchange from the August 23 show:
Continue reading …Substitute hosting on HLN's The Joy Behar Show, on Tuesday, CNN's Don Lemon prodded Jay Bakker, the son of televangelist Jim Bakker, to accuse Rick Perry and Michele Bachmann of exploiting fears of Christians as he claimed that the GOP presidential hopefuls were: “playing to a group of people who deal a lot with fear and using fear to control folks.” The dismissive Bakker then asserted: “I feel like they've kind of hijacked Christianity,” and added that he thinks the Perrys and Bachmanns were advancing “fairy tales” that global warming doesn't exist and claimed they wanted to “ignore” science. Lemon initially invited on Bakker to analyze the discussion he had with his previous guest, Randy Roberts Potts about what it was like to grow up gay in the “shadow” of his grandfather televangelist Oral Roberts. However it wasn't long before Lemon switched topics to the 2012 GOP primary race, as seen in this exchange from the August 23 show:
Continue reading …