Cicero Yearly Archives

Germany

This tag is associated with 3 posts

G20 To Tackle Tax Avoidance


G20 Finance Meeting in Moscow 2013The finance ministers meeting today at the G20 held in Moscow have today pledged to ensure that multinational companies will no longer be able shifting profits from a home country to pay less tax elsewhere – the aim is to prevent tax avoidance by large companies.

France, Britain and Germany have been the main proponents seeking radical changes to existing european legal loopholes and members of these countries also promised to refrain devaluing their currencies to gain economic advantage; which could cause a “currency war”.

The fears had been sparked by Japan’s recent policies, which have driven down the value of the yen, aiding its exporters.

Organisation of Economic Co-operation and Development (OECD) found that multinational firms could exploit gaps between tax rules in the different countries in which they operate.

The finance ministers of the UK, France and Germany – George Osborne, Pierre Moscovici and Wolfgang Schaeuble have called for international action to crack down on companies transferring profits from their originating country to another in order to lower the tax paid.

Mr Osborne decried a global taxation system he said had been guided by principles set out by the League of Nations in the 1920s, with few changes since.

How does Price Fixing work?

An imaginary company CiceroUK Ltd is a subsidiary of the imaginary US company CiceroCorp. It provides books from the paper that’s manufactured at Paper Corp factories in China, and then sells them in the UK.

CiceroUK Ltd’s profit statement

Total sales revenues £100m
– Cost of Paper from China £50m
– Labour costs and UK overheads £25m
Royalty fee paid to Paper Corp * £15m
– Interest on loan from CiceroCorp £5m
Total costs £95m
Taxable profit (revenues minus costs) £5m

“Transfer pricing” rules apply to the cost of parts, the fee payment and the interest on the loan. If Paper Corp overcharged for any of these, it would reduce CiceroUK corporation tax bill in the UK, while increasing CiceroCorp axable profits in another country.

*For usage of intellectual property rights and brands owned by the US company

For more information in how companies are avoiding paying Corporate Tax see http://www.bbc.co.uk/news/business-20580545

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E3+3 Talks on Iran


The major E3+3 countries of the world (including the UK, US, China, France, Germany and Russia) will be meeting today in Instanbul with the Iranian Government once again to discuss and have an offer of an  assurance over any proposed nuclear programme that Iran may be conducting. This follows a meeting of the E3+3 at the UN General Assembly in September 2009. At that meeting Iran’s nuclear programme was found a matter of concern to the E3+3 countries as they said in their statement – those talks basically wanted to see Iran to implement all measures required by the IAEA and the UN Security Council and to build confidence that a exclusively peaceful nature nuclear programme was only being developed.

The Foreign and Commonwealth Office (FCO) website has issued the following statement : “We welcome the fact that the Iranian government is ready to re-engage with the United Kingdom and other members of the international community on its nuclear programme.  These talks present a genuine opportunity to move things forward. The Iranian government has written to us to say it wants these talks to cover its nuclear programme.  The talks will be a demonstration of whether or not the Iranian government is really ready to do that”

The Oxford Research Group have said on their website about the risk of a conflict appearing greater than ever due to events in Iran and the arab world since the last meeting took place.ORG say’s in a statement about the talks that a negotiations between Iran and the member states of the E3+3 have proved elusive due to ‘a lack of political will, demonization, deep distrust and misunderstanding on all sides.’  They warn that if these talks fail, there could be the prospect of a military attack on Iran –  which they have previously published a  series of reports since 2006. Israeli itself is also poised to take action should Iran be planning such a programme (as discussed in their Global Security Briefing ‘The Potential for Israeli Military Action against Iran’s Nuclear Facilities’)

Below is the Foreign Office Minister Alistair Burt discussing his hopes for negotiations with the Iranian Government during the E3+3 talks today.

German Cow is Free at Last!


Yvonne - Free at Last?Yvonne the cow that escaped from a farm in Bavaria in May has been caught and thankfully the cow that stole the hearts of the German people in her fight for animal liberation is now at Gut Aiderbichl animal sanctuary where activists originally paid €600 to prevent her slaughter.

Although initially there was a €10,000 reward placed on her capture where she managed three months on the run before a farmer reported seeing her on his land.

Konrad Gutmann, 46, claimed the €10,000 reward by the German tabloid Bild – after seeing what he thought was a lonely animal wandering towars his land to befriend his cows.”It was just luck really. I was out taking a tour of my electric fence with my daughter Melanie at about 6pm when I saw Yvonne on the other side staring at the young cows. “. In  an interview with the Daily Mail he describes how after initially “She was very nervous,’   he herded her to his field.

The animal sanctuary that now owns Yvonne confirmed that the cow had been moved to her new home. She has been identified by the tag on her ear to being the missing cow.

Sky News

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