HMRC crackdown means officers who accepted payments from newspapers or private investigators face prosecution and fines Police officers who allegedly took payments from newspapers and private investigators could face hefty fines and criminal prosecution after it emerged HM Revenue & Customs is reopening personal tax records to check if payments were fully disclosed. It is understood HMRC has already begun probing self-assessment forms from previous years in the wake of new information obtained amid the phone-hacking revelations. Last month Sir Paul Stephenson, the outgoing Metropolitan police commissioner, said documents provided by News International appear to include information on “inappropriate payments” to police officers. It was reported that the company provided the Met with details of payments made by the News of the World to senior officers between 2003 and 2007. Under HMRC rules any payments earned in connection with an individual’s employment are required to be disclosed for tax purposes, even if the payment is deemed illegal. An HMRC spokesperson said he could not confirm the nature or extent of any investigation into a private individual’s tax affairs. But he confirmed that HMRC will act on any new information and that illegal earnings can still be liable for tax. Action to recover tax from police officers paid illegal tip-off fees relies on the precedent set by the “Miss Whiplash” prostitution case of the early 1990s, which has since entered the HMRC rule book. Miss Whiplash, who also went by the name of Lindi St Clair, was pursued for £112,000 in unpaid income tax in the late 1980s. It culminated in a court case in 1990 where she argued that since it was illegal to live on immoral earnings, taxing her would be committing an offence. But she lost the case and was subsequently made bankrupt. An HMRC spokesman said: “If you receive money in connection with your employment then it is liable for income tax. Illegality is irrelevant.” Over the past year HMRC has intensified investigations into alleged tax cheats and promised to increase the number of prosecutions. Since April HMRC has had powers to name and shame anyone found to have deliberately evaded £25,000 or more in tax. The scheme will see names, addresses and details of the evasion made public. But those who come clean can avoid having their details published. Earlier this year the government gave HMRC with an additional £900m to fund more investigations into tax evasion. The aim is to raise an additional £7bn in tax each year by 2014/15. HMRC has also gained new powers to inspect taxpayers’ records and documents. In a typical investigation it will examine income and earnings dating back six years. If it discovers an individual has knowingly submitted an inaccurate return or document, or taken active steps to conceal earnings, it can demand repayment of the tax, plus interest and a penalty of up to 100% of the unpaid tax. The department recently announced the targeting of the restaurant industry with a new task force dedicated to detecting tax and national insurance evasion. But it added that criminal prosecutions were reserved only for the most serious cases of high level fraud. Police Phone hacking Tax avoidance Corporate governance Tax Newspapers & magazines Patrick Collinson guardian.co.uk
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World’s financial markets closed for business nursing losses of more than $2.5 trillion (£1.53tn) after a week of selling The world’s financial markets closed for business nursing losses of more than $2.5 tn (£1.53tn) after a week of turbulent selling not seen since the dark days of late 2008, when the big beasts of banking were forced to beg for government help and the global economy was gripped by its worst recession since the 1930s. Hundreds of billions of pounds have been wiped off share prices in London. Across the Atlantic, Wall Street alone was staring at losses of $2tn or more after a fortnight of almost incessant selling. Front pages again carried pictures of traders with their heads in their hands looking at a sea of red on their computer screens. The jagged downward lines of share price indices pointed the way in which the world economy seems to have turned after a week that has left the financial system on the brink of another global crisis. It seems that the problems that first emerged at the outset of the credit crunch four years ago almost to this very day – the unofficial anniversary is this coming Tuesday, 9 August – never went away despite billions of taxpayer support for the system. Louise Cooper, an analyst at BGC Partners, said City traders were starting to “feel the fear. The banking industry is yet again facing a crisis – we are not yet at the post-Lehman days, but the system is creaking loudly. The horrible reality is that those leaders in charge of our economy have no answers.” Even a jobs boost for the US was not enough to lift the mood of deep gloom which had descended over financial markets seven days ago. On a sweltering morning in Washington DC last Friday, the latest health check on the US economy was broadcast around the world , and at first glance the prognosis was bad. The US economy, official figures showed, barely grew in the second quarter of 2011. On closer examination, the bulletin was even worse. Revisions to past data showed that the plunge in activity during the recession had been deeper than originally believed and the recovery much weaker. Those US growth figures kicked off a week of mayhem in the world’s financial markets. They were, according to Nick Parsons, head of strategy at National Australia Bank, a real “game changer” because up until last Friday, US policy makers could shrug off poor data as simply a soft patch for the economy. “But, with no momentum in the economy, a recession much deeper than thought and a recovery which hadn’t even regained the lost ground after three and a half years, data disappointments can no longer just be shrugged off,” Parsons said. “They’re the new reality, and the new reality sucks.” Across the Atlantic, a second shoe was about to fall. Barely a week after the leaders of the 17 nations of the eurozone had hailed as historic a package that offered fresh help for Greece and the promise of pre-emptive support for any other member of the single currency that fell foul of jittery bond market investors, the deal was already unravelling. The immediate cause for concern was not one of the usual suspects but Cyprus, one of the smallest members of the euro club and which appeared to be the next country likely to need financial help. But events at the eastern end of the Med were just the sign of worse to come from its bigger partners. Much worse. By the time Wall Street dealers had returned from their weekends in the Hamptons, there was more poor economic data to digest, and not just from the US this time. The first day of each month sees the release of reports on manufacturing from around the world. In the UK, China, the eurozone and the US, the message was the same: activity was slowing, in some cases to the point where industrial output was stalling. Tuesday saw the focus switch back to Europe, where the interest rates on Spanish and Italian bonds rose above the level deemed critical in the financial markets – 6% – and to their highest levels since the creation of the single currency. Spain’s prime minister, José Luis Zapatero, said he was postponing his holiday plans. Italy held an emergency meeting of economic policy makers. In Britain, by contrast, yields on benchmark 10-year gilts fell to their lowest level since 1946. The Treasury said it was a sign of confidence in George Osborne’s decision to take a lead on deficit reduction, a lead that the US was now being forced to follow. But Jonathan Portes, director of the National Institute for Economic and Social Research, said low gilt yields were a sign of economic weakness. In the City, they said the UK was the best-looking horse in the glue factory. Wall Street closed 265 points lower. The economic news from the UK on Wednesday was, for once, better than expected. The barometer of the services sector, which accounts for 75% of national output, showed a rise in July, something that in normal circumstances would have bolstered confidence in the markets. But with Wall Street down heavily overnight and taking another thumping in early New York trading thanks to disappointing news from the US services sector, the FTSE 100 dropped 133 points. A late rally, which saw the Dow break an eight-day losing streak, came too late for London dealers. And so the scene was set for Black Thursday, a day when all the pieces of the jigsaw slotted together. There was a thumping loss for the partly nationalised Lloyds bank. There was criticism from José Manuel Barroso, president of the European commission, of the snail’s pace at which European leaders were responding to the crisis. This from the man who had been insisting Europe was finally on top of its crisis. The European Central Bank appeared to be doing the bare minimum to defuse the tension. Speculation that the single currency could unravel meshed with concern that the US was about to go into a double-dip recession, with knock-on effects for the global economy. The FTSE was down almost 200 points. Oil prices fell by 5%. The Swiss and Japanese central banks intervened. Gold rose to new record levels before falling back amid reports that hedge funds were selling their holdings to cover losses. Washington woke up to another scorching day and some brief respite from better than expected jobs figures. But those market graphs soon turned downwards again. The forecast from traders is for more stormy weather. Stock markets European debt crisis Financial crisis FTSE Dow Jones Global recession Global economy Banking Financial sector European banks Economics United States Larry Elliott guardian.co.uk
Continue reading …World’s financial markets closed for business nursing losses of more than $2.5 trillion (£1.53tn) after a week of selling The world’s financial markets closed for business nursing losses of more than $2.5 tn (£1.53tn) after a week of turbulent selling not seen since the dark days of late 2008, when the big beasts of banking were forced to beg for government help and the global economy was gripped by its worst recession since the 1930s. Hundreds of billions of pounds have been wiped off share prices in London. Across the Atlantic, Wall Street alone was staring at losses of $2tn or more after a fortnight of almost incessant selling. Front pages again carried pictures of traders with their heads in their hands looking at a sea of red on their computer screens. The jagged downward lines of share price indices pointed the way in which the world economy seems to have turned after a week that has left the financial system on the brink of another global crisis. It seems that the problems that first emerged at the outset of the credit crunch four years ago almost to this very day – the unofficial anniversary is this coming Tuesday, 9 August – never went away despite billions of taxpayer support for the system. Louise Cooper, an analyst at BGC Partners, said City traders were starting to “feel the fear. The banking industry is yet again facing a crisis – we are not yet at the post-Lehman days, but the system is creaking loudly. The horrible reality is that those leaders in charge of our economy have no answers.” Even a jobs boost for the US was not enough to lift the mood of deep gloom which had descended over financial markets seven days ago. On a sweltering morning in Washington DC last Friday, the latest health check on the US economy was broadcast around the world , and at first glance the prognosis was bad. The US economy, official figures showed, barely grew in the second quarter of 2011. On closer examination, the bulletin was even worse. Revisions to past data showed that the plunge in activity during the recession had been deeper than originally believed and the recovery much weaker. Those US growth figures kicked off a week of mayhem in the world’s financial markets. They were, according to Nick Parsons, head of strategy at National Australia Bank, a real “game changer” because up until last Friday, US policy makers could shrug off poor data as simply a soft patch for the economy. “But, with no momentum in the economy, a recession much deeper than thought and a recovery which hadn’t even regained the lost ground after three and a half years, data disappointments can no longer just be shrugged off,” Parsons said. “They’re the new reality, and the new reality sucks.” Across the Atlantic, a second shoe was about to fall. Barely a week after the leaders of the 17 nations of the eurozone had hailed as historic a package that offered fresh help for Greece and the promise of pre-emptive support for any other member of the single currency that fell foul of jittery bond market investors, the deal was already unravelling. The immediate cause for concern was not one of the usual suspects but Cyprus, one of the smallest members of the euro club and which appeared to be the next country likely to need financial help. But events at the eastern end of the Med were just the sign of worse to come from its bigger partners. Much worse. By the time Wall Street dealers had returned from their weekends in the Hamptons, there was more poor economic data to digest, and not just from the US this time. The first day of each month sees the release of reports on manufacturing from around the world. In the UK, China, the eurozone and the US, the message was the same: activity was slowing, in some cases to the point where industrial output was stalling. Tuesday saw the focus switch back to Europe, where the interest rates on Spanish and Italian bonds rose above the level deemed critical in the financial markets – 6% – and to their highest levels since the creation of the single currency. Spain’s prime minister, José Luis Zapatero, said he was postponing his holiday plans. Italy held an emergency meeting of economic policy makers. In Britain, by contrast, yields on benchmark 10-year gilts fell to their lowest level since 1946. The Treasury said it was a sign of confidence in George Osborne’s decision to take a lead on deficit reduction, a lead that the US was now being forced to follow. But Jonathan Portes, director of the National Institute for Economic and Social Research, said low gilt yields were a sign of economic weakness. In the City, they said the UK was the best-looking horse in the glue factory. Wall Street closed 265 points lower. The economic news from the UK on Wednesday was, for once, better than expected. The barometer of the services sector, which accounts for 75% of national output, showed a rise in July, something that in normal circumstances would have bolstered confidence in the markets. But with Wall Street down heavily overnight and taking another thumping in early New York trading thanks to disappointing news from the US services sector, the FTSE 100 dropped 133 points. A late rally, which saw the Dow break an eight-day losing streak, came too late for London dealers. And so the scene was set for Black Thursday, a day when all the pieces of the jigsaw slotted together. There was a thumping loss for the partly nationalised Lloyds bank. There was criticism from José Manuel Barroso, president of the European commission, of the snail’s pace at which European leaders were responding to the crisis. This from the man who had been insisting Europe was finally on top of its crisis. The European Central Bank appeared to be doing the bare minimum to defuse the tension. Speculation that the single currency could unravel meshed with concern that the US was about to go into a double-dip recession, with knock-on effects for the global economy. The FTSE was down almost 200 points. Oil prices fell by 5%. The Swiss and Japanese central banks intervened. Gold rose to new record levels before falling back amid reports that hedge funds were selling their holdings to cover losses. Washington woke up to another scorching day and some brief respite from better than expected jobs figures. But those market graphs soon turned downwards again. The forecast from traders is for more stormy weather. Stock markets European debt crisis Financial crisis FTSE Dow Jones Global recession Global economy Banking Financial sector European banks Economics United States Larry Elliott guardian.co.uk
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Daigger and Company, a lab equipment supplier outside Chicago, says growth is at a standstill. Owners say Washington politics is part of the problem. (Aug. 5)
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Daigger and Company, a lab equipment supplier outside Chicago, says growth is at a standstill. Owners say Washington politics is part of the problem. (Aug. 5)
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Voters are much more focused on the economy and jobs than they are on the deficit and debt, and they see manufacturing as a key component of improving the American economy. Those were among the key findings of a national poll and focus groups conducted on behalf of the Alliance for American Manufacturing. Poll respondents said they believe that manufacturing is “central and irreplaceable” in determining the strength of the economy of the United States. The results show increasing support for U.S. industry, growing concern over China’s role in our economy and a strong sense that no one in Washington is doing anything to improve the job situation. Nearly 90% of Americans favor a national manufacturing plan that includes “Buy American” provisions, that cracks down on unfair trade practices by countries such as China, and that includes incentives for research and development. The AAM said the purpose of the poll was to send a “wake-up call” to Washington. In particular, the organization points out that Republican leaders (and to a lesser extent, Democratic leaders) are significantly out of touch with their constituents. The polling showed consistent results across party lines and including the majority of tea party-identified voters. Representative quotes from voters in the focus groups were: “We become a third world country if we lose manufacturing” and “The playing field isn’t even, China is cheating.” Other key numbers from the poll: -When given an “either/or” choice, just 29% want Washington to focus on deficit reduction while 67% favor job creation. -Less than a third (32%) believe the U.S. is the world’s strongest economy, with the plurality (39%) saying it is China. Yet, 88% believe it is possible for the U.S. to have the strongest economy in the world and 95% feel that it is either very or somewhat important. -“Creating manufacturing jobs in the U.S.” and “strengthening manufacturing in this country” are the top voter priorities for the President. -Only 50% of voters believe that the President is working to create manufacturing jobs – an 11% drop from 2010. Congress fares even worse – 41% say Democrats in Congress are working to create jobs, and 32% see the GOP working to create jobs. -90% have a favorable view of American manufacturing companies – up 22% from 2010. -97% have a favorable view of U.S.-made goods – up 5% from 2010. -32% identified manufacturing as the “most important” sector for our economic strength – surpassing all other sectors by a wide margin. 54% identified it in their “top two.” -62% say that that manufacturing is a “critical part of the American economy” and reject the view that high-tech and services will replace it.72% have an unfavorable view of goods made in China and 83% have an unfavorable view of companies that go to China to manufacture. -86% favor a national manufacturing strategy “to make sure that economic, tax, labor and trade policies in this country work together to help support manufacturing…” – up 8% from 2010. -87% see a role for government in supporting manufacturing – 49% say “whatever is necessary” and another 38% for limited role of “incentives, and trade policy.” -94% support a tax benefit for companies that conduct R&D in the U.S. and make their new products here. -91% support increasing investment in “retraining and education programs to ensure workers gain the tools they need to compete in modern, high-tech factories – up 4% from 2010. -90% support Buy American policies “to ensure that taxpayer funded government projects use only U.S.-made goods and supplies wherever possible.” -90% support tax incentives for companies that “invest in new equipment and plants for manufacturing.” -89% support investing “more in rebuilding and repairing bridges, roads, and other basic infrastructure.” -95% favor keeping “America’s trade laws strong and strictly enforced to provide a level playing field for our workers and businesses.” -59% say we need to “get tough with China and use every possible means to stop their unfair trade practices…” – only 34% say we need to “be careful…because they own such a significant portion of our debt.” On Thursday, the AAM held a conference call to reveal the findings from a national survey and several focus groups of likely 2012 voters. The results were compiled by the Mellman Group and Ayres & McHenry. AAM will continue to poll these topics regularly to make sure that the media and Washington politicians know what the people’s priorities are in the areas of jobs and manufacturing. The full report is available on the AAM website .
Continue reading …Voters are much more focused on the economy and jobs than they are on the deficit and debt, and they see manufacturing as a key component of improving the American economy. Those were among the key findings of a national poll and focus groups conducted on behalf of the Alliance for American Manufacturing. Poll respondents said they believe that manufacturing is “central and irreplaceable” in determining the strength of the economy of the United States. The results show increasing support for U.S. industry, growing concern over China’s role in our economy and a strong sense that no one in Washington is doing anything to improve the job situation. Nearly 90% of Americans favor a national manufacturing plan that includes “Buy American” provisions, that cracks down on unfair trade practices by countries such as China, and that includes incentives for research and development. The AAM said the purpose of the poll was to send a “wake-up call” to Washington. In particular, the organization points out that Republican leaders (and to a lesser extent, Democratic leaders) are significantly out of touch with their constituents. The polling showed consistent results across party lines and including the majority of tea party-identified voters. Representative quotes from voters in the focus groups were: “We become a third world country if we lose manufacturing” and “The playing field isn’t even, China is cheating.” Other key numbers from the poll: -When given an “either/or” choice, just 29% want Washington to focus on deficit reduction while 67% favor job creation. -Less than a third (32%) believe the U.S. is the world’s strongest economy, with the plurality (39%) saying it is China. Yet, 88% believe it is possible for the U.S. to have the strongest economy in the world and 95% feel that it is either very or somewhat important. -“Creating manufacturing jobs in the U.S.” and “strengthening manufacturing in this country” are the top voter priorities for the President. -Only 50% of voters believe that the President is working to create manufacturing jobs – an 11% drop from 2010. Congress fares even worse – 41% say Democrats in Congress are working to create jobs, and 32% see the GOP working to create jobs. -90% have a favorable view of American manufacturing companies – up 22% from 2010. -97% have a favorable view of U.S.-made goods – up 5% from 2010. -32% identified manufacturing as the “most important” sector for our economic strength – surpassing all other sectors by a wide margin. 54% identified it in their “top two.” -62% say that that manufacturing is a “critical part of the American economy” and reject the view that high-tech and services will replace it.72% have an unfavorable view of goods made in China and 83% have an unfavorable view of companies that go to China to manufacture. -86% favor a national manufacturing strategy “to make sure that economic, tax, labor and trade policies in this country work together to help support manufacturing…” – up 8% from 2010. -87% see a role for government in supporting manufacturing – 49% say “whatever is necessary” and another 38% for limited role of “incentives, and trade policy.” -94% support a tax benefit for companies that conduct R&D in the U.S. and make their new products here. -91% support increasing investment in “retraining and education programs to ensure workers gain the tools they need to compete in modern, high-tech factories – up 4% from 2010. -90% support Buy American policies “to ensure that taxpayer funded government projects use only U.S.-made goods and supplies wherever possible.” -90% support tax incentives for companies that “invest in new equipment and plants for manufacturing.” -89% support investing “more in rebuilding and repairing bridges, roads, and other basic infrastructure.” -95% favor keeping “America’s trade laws strong and strictly enforced to provide a level playing field for our workers and businesses.” -59% say we need to “get tough with China and use every possible means to stop their unfair trade practices…” – only 34% say we need to “be careful…because they own such a significant portion of our debt.” On Thursday, the AAM held a conference call to reveal the findings from a national survey and several focus groups of likely 2012 voters. The results were compiled by the Mellman Group and Ayres & McHenry. AAM will continue to poll these topics regularly to make sure that the media and Washington politicians know what the people’s priorities are in the areas of jobs and manufacturing. The full report is available on the AAM website .
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CNBC's Rick Santelli had to explain the economy to MSNBC contributor Ezra Klein on today's Morning Joe (h/t Hot Air ). Klein argued that another recession would “move money around in ways that are unfair.”
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Corporal Stephen Curley, 26, died instantly when roadside bomb was detonated by 14-year-old boy in Helmand A 14-year-old boy was promised $80 (£50) by the Taliban to set off a device that killed a British marine in Afghanistan, an inquest has heard. Stephen Curley , 26, was killed instantly when a roadside bomb was detonated in Helmand. A few days after Curley was killed, the boy was handed in by his father and confessed to setting off the IED, the inquest in Exeter was told. The boy, named as Aga Wali, confessed to the Afghan police after the Taliban went back on its deal to pay him and told him he ought to have carried out the attack to help his country. He was not handed over to British security or intelligence officers but was questioned by the local Afghan chief of police. It is believed the boy was sentenced to jail but it is not known how long he will serve or if he is still in custody. Curley’s widow, Kirianne, 28, only learned of the teenager’s apparent involvement shortly before the hearing. Lieutenant Colonel Paul James, who was in charge of operations with 40 Commando Royal Marines at the time, said: “I received a report from the Afghan national police that a 14-year-old boy had been handed in by his father for being the trigger man in an IED attack.” James said the date corresponded to the day Curley was caught in the explosion in May last year. He added: “The father was concerned that his son was embarking upon a life as a fighter with the Taliban and feared for his life. “He said Aga Wali had been told he would be paid 80 US dollars but when he went for payment they said aggressively he should be fighting for ideological reasons and not financial gain. “Aga Wali left angrily and felt betrayed. The boy was detained briefly within the national directorate of security before being processed through the courts and a sentence of imprisonment was imposed of an uncertain period of time.” Another witness, Captain Dom Rogers said he was present when the boy was questioned. “In my presence he admitted activating an IED and acting as the trigger man. He was unable to read a map but was able to describe the ground and it fitted with that where Corporal Curley was wounded fatally,” he said. The fatal patrol was organised as part of an effort to reassure local people concerned about their safety. Curley’s wife had given birth to their son, William, 18 weeks before he was killed. At the time of his death she said: “It is impossible for me to express what my husband meant to me. Daddy to our 18-week-old son William and my partner in crime, Stevie was my purpose, what makes me tick. “A man of few but powerful words when it mattered, he lived by the motto ‘If you’re not living life on the edge, you’re taking up too much room.’” Afghanistan Military Steven Morris guardian.co.uk
Continue reading …Corporal Stephen Curley, 26, died instantly when roadside bomb was detonated by 14-year-old boy in Helmand A 14-year-old boy was promised $80 (£50) by the Taliban to set off a device that killed a British marine in Afghanistan, an inquest has heard. Stephen Curley , 26, was killed instantly when a roadside bomb was detonated in Helmand. A few days after Curley was killed, the boy was handed in by his father and confessed to setting off the IED, the inquest in Exeter was told. The boy, named as Aga Wali, confessed to the Afghan police after the Taliban went back on its deal to pay him and told him he ought to have carried out the attack to help his country. He was not handed over to British security or intelligence officers but was questioned by the local Afghan chief of police. It is believed the boy was sentenced to jail but it is not known how long he will serve or if he is still in custody. Curley’s widow, Kirianne, 28, only learned of the teenager’s apparent involvement shortly before the hearing. Lieutenant Colonel Paul James, who was in charge of operations with 40 Commando Royal Marines at the time, said: “I received a report from the Afghan national police that a 14-year-old boy had been handed in by his father for being the trigger man in an IED attack.” James said the date corresponded to the day Curley was caught in the explosion in May last year. He added: “The father was concerned that his son was embarking upon a life as a fighter with the Taliban and feared for his life. “He said Aga Wali had been told he would be paid 80 US dollars but when he went for payment they said aggressively he should be fighting for ideological reasons and not financial gain. “Aga Wali left angrily and felt betrayed. The boy was detained briefly within the national directorate of security before being processed through the courts and a sentence of imprisonment was imposed of an uncertain period of time.” Another witness, Captain Dom Rogers said he was present when the boy was questioned. “In my presence he admitted activating an IED and acting as the trigger man. He was unable to read a map but was able to describe the ground and it fitted with that where Corporal Curley was wounded fatally,” he said. The fatal patrol was organised as part of an effort to reassure local people concerned about their safety. Curley’s wife had given birth to their son, William, 18 weeks before he was killed. At the time of his death she said: “It is impossible for me to express what my husband meant to me. Daddy to our 18-week-old son William and my partner in crime, Stevie was my purpose, what makes me tick. “A man of few but powerful words when it mattered, he lived by the motto ‘If you’re not living life on the edge, you’re taking up too much room.’” Afghanistan Military Steven Morris guardian.co.uk
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