<br><br><div class="gmail_quote">On Thu, Dec 13, 2012 at 5:49 PM, parminder <span dir="ltr"><<a href="mailto:parminder@itforchange.net" target="_blank">parminder@itforchange.net</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">

  
    
  
  <div bgcolor="#FFFFFF" text="#000000">
    <br>
    <div>On Thursday 13 December 2012 02:05 PM,
      Adam Peake wrote:<br>
    </div>
    <blockquote type="cite">-1
      <div><br>
      </div>
      <div>write to politicians. </div>
    </blockquote>
    <br>
    You mean we should write to governments? Good idea. Which venue you
    think is best to address in this regard? Remember, there is a
    strong, perhaps, central, element of inter-country issues here. <br><div class="im">
    <br></div></div></blockquote><div><br></div><div><br></div><div>Well not really as taxes are national.  So I would recommend we draft a letter and send to respective ICT ministries, treasury and appropriate MPs (or equivalent.)  And to the countries such as Ireland, Luxembourg, etc favored by companies like Google, Amazon eyc.</div>
<div><br></div><div> </div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div bgcolor="#FFFFFF" text="#000000"><div class="im">
    <blockquote type="cite">
      <div> to google would be just posturing.</div>
    </blockquote>
    <br></div>
    You means that they would not pay heed to civil society's voice/
    statement on this, and not bother to respond? If nothing else, that
    will be interesting to note, given the numerous close compacts with
    civil society that google has worked up in these last few months on
    many global IG issues.<span class="HOEnZb"><font color="#888888"><br>
    <br></font></span></div></blockquote><div><br></div><div>No.   </div><div><br></div><div>(disclosure, GLOCOM hosts a Google Policy Fellow)</div><div><br></div><div>Adam</div><div><br></div><div><br></div><div><br></div>
<div> </div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div bgcolor="#FFFFFF" text="#000000"><span class="HOEnZb"><font color="#888888">
    parminder <br></font></span><div><div class="h5">
    <blockquote type="cite">
      <div><br>
      </div>
      <div>Adam</div>
      <div><br>
      </div>
      <div><br>
        <br>
        <div class="gmail_quote">On Thu, Dec 13, 2012 at 1:40 PM,
          Salanieta T. Tamanikaiwaimaro <span dir="ltr"><<a href="mailto:salanieta.tamanikaiwaimaro@gmail.com" target="_blank">salanieta.tamanikaiwaimaro@gmail.com</a>></span>
          wrote:<br>
          <blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><br>
            <br>
            <div class="gmail_quote">
              <div>On Thu, Dec 13, 2012 at 5:33 PM, parminder
                <span dir="ltr"><<a href="mailto:parminder@itforchange.net" target="_blank">parminder@itforchange.net</a>></span>
                wrote:<br>
                <blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
                  <div bgcolor="#FFFFFF" text="#000000"> <br>
                    <font face="Verdana">Rather shameful that google
                      paid 3 percent tax on its overseas profit!! It
                      surely leaves it with a lot of money to spend in
                      lobbying and advocacy efforts to keep global
                      markets free for its unlettered operations... Like
                      organising campaigns against ITU, German
                      legislature, and so on. <br>
                      <br>
                      Would IGC write an open letter to Google that its
                      tax evasion policy is anti people, and it should
                      pays its taxes where it makes its profit. (Or is
                      it that the IG civil society does not go into such
                      re-distributional questions )   It is not
                      rhetorical but a real question to the list, and
                      its coordinator. <br>
                    </font></div>
                </blockquote>
                <div><br>
                </div>
              </div>
              <div>What does the list think? </div>
              <div>+1 if you think the IGC should write a letter to
                Google</div>
              <div>-1 if the IGC should not write a letter to Google</div>
              <div><br>
              </div>
              <div>As always the IGC decides </div>
              <blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
                <div>
                  <div>
                    <div bgcolor="#FFFFFF" text="#000000"><font face="Verdana"><span><font color="#888888"> <br>
                             parminder <br>
                            <br>
                            <br>
                          </font></span></font>
                      <div>
                        <div>
                          <div>On Wednesday 12 December 2012 09:37 PM,
                            Salanieta T. Tamanikaiwaimaro wrote:<br>
                          </div>
                          <blockquote type="cite">More on Bloomberg: <a href="http://www.bloomberg.com/news/2012-12-10/google-revenues-sheltered-in-no-tax-bermuda-soar-to-10-billion.html" target="_blank">http://www.bloomberg.com/news/2012-12-10/google-revenues-sheltered-in-no-tax-bermuda-soar-to-10-billion.html</a><br>

                            <br>
                            <div class="gmail_quote">On Thu, Dec 13,
                              2012 at 4:48 AM, Salanieta T.
                              Tamanikaiwaimaro <span dir="ltr"><<a href="mailto:salanieta.tamanikaiwaimaro@gmail.com" target="_blank">salanieta.tamanikaiwaimaro@gmail.com</a>></span>
                              wrote:<br>
                              <blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
                                <div><br>
                                </div>
                                <div>Somehow it feels that there is a
                                  targeted media campaign out against
                                  the likes of Google and other mncs -
                                  the timing of the release is almost
                                  impeccable with the WCIT. </div>
                                <div><br>
                                </div>
                                <div>Source: <a href="http://www.telecomtv.com/comspace_newsDetail.aspx?n=49763&id=e9381817-0593-417a-8639-c4c53e2a2a10" target="_blank">http://www.telecomtv.com/comspace_newsDetail.aspx?n=49763&id=e9381817-0593-417a-8639-c4c53e2a2a10</a></div>

                                <div><br>
                                </div>
                                <h1><span style="padding:0px;margin:0px">Google
                                    “can make money without doing evil”
                                    (as it evades $2bn in taxes)</span></h1>
                                <div>Posted By <a href="http://www.telecomtv.com/go/?ct=9&id=e9381817-0593-417a-8639-c4c53e2a2a10" style="padding:0px;margin:0px;color:rgb(205,153,0)" target="_blank">TelecomTV
                                    One</a> , <span style="padding:0px;margin:0px">12
                                    December 2012</span> | <a href="http://www.telecomtv.com/comspace_newsDetail.aspx?n=49763&id=e9381817-0593-417a-8639-c4c53e2a2a10#comments" style="padding:0px;margin:0px;color:rgb(205,153,0)" target="_blank"><span style="padding:0px;margin:0px">1</span> Comments</a> | <span style="padding:0px;margin:0px;font-size:11px;font-family:Arial,Helvetica,sans-serif;white-space:nowrap"><img title="0
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                                  <span style="padding:0px;margin:0px">Tags:</span> <i style="padding:0px;margin:0px"><a href="http://www.telecomtv.com/results.aspx?tag=122&tagname=Google" style="padding:0px;margin:0px;color:rgb(205,153,0)" target="_blank">Google</a></i> <i style="padding:0px;margin:0px"><a href="http://www.telecomtv.com/results.aspx?tag=6972&tagname=corporate" style="padding:0px;margin:0px;color:rgb(205,153,0)" target="_blank">corporate</a></i> <i style="padding:0px;margin:0px"><a href="http://www.telecomtv.com/results.aspx?tag=434&tagname=tax" style="padding:0px;margin:0px;color:rgb(205,153,0)" target="_blank">tax</a></i> <i style="padding:0px;margin:0px"><a href="http://www.telecomtv.com/results.aspx?tag=365&tagname=Finance" style="padding:0px;margin:0px;color:rgb(205,153,0)" target="_blank">Finance</a></i></div>

                                <div>
                                  <p style="padding:0px;margin:0px"> <span style="padding:0px;margin:0px">As
                                      the net closes around the
                                      multinationals that avoid paying
                                      corporation taxes, Google is
                                      accused of saving $2bn by routing
                                      income through a “Double Irish
                                      Dutch Sandwich”, paying tax of
                                      just 3.2 per cent on its overseas
                                      profits. Guy Daniels reports.</span></p>
                                </div>
                                <div>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">Three
                                    questions. One; where do you stand
                                    on the subject of tax avoidance? We
                                    at TelecomTV believe that
                                    individuals and corporations have a
                                    duty to pay their fair share of tax.
                                    By fair, we mean whatever respective
                                    governments rule to be the legal
                                    requirement (after all, in most
                                    countries, we voted the politicians
                                    in to office). By all means try and
                                    mitigate the amount of tax you have
                                    to pay, using whatever accepted
                                    mechanisms are available. But
                                    avoidance? That just means somebody
                                    else (with far less access to
                                    expensive and clever advisors) has
                                    to contribute to your share as well.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">Second
                                    question: how do you define evil?
                                    The Oxford English Dictionary
                                    defines evil as “profoundly immoral
                                    and wicked” or “something which is
                                    harmful or undesirable”. In my book,
                                    that means tax avoidance is evil,
                                    simple as that.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">Third
                                    and final question: Is Google evil?
                                    If you believe that avoiding tax is
                                    wrong (especially through aggressive
                                    and mind-boggling complicated
                                    avoidance schemes) and if you
                                    believe that depriving society of
                                    tax revenues is wrong (and so
                                    reducing the level of available
                                    State support for the most needy)
                                    and could be described as an evil
                                    act, then surely you must conclude
                                    that Google is acting in an evil
                                    manner.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">An
                                    investigative report by <a href="http://www.bloomberg.com/news/2012-12-10/google-revenues-sheltered-in-no-tax-bermuda-soar-to-10-billion.html" style="padding:0px;margin:0px;color:rgb(57,48,44)" target="_blank">Bloomberg</a> has
                                    discovered that Google avoided about
                                    $2 billion in worldwide income taxes
                                    in 2011 by shifting $9.8 billion in
                                    revenues into a Bermuda shell
                                    company – almost double its total
                                    from three years ago. The
                                    information was disclosed in a
                                    November filing by a Google
                                    subsidiary in the Netherlands, which
                                    was discovered by reporters from
                                    Bloomberg.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">It
                                    appears that Google legally routed
                                    profits from overseas subsidiaries
                                    into Bermuda, which doesn’t have a
                                    corporate income tax, thereby
                                    enabling it to cut its overall tax
                                    rate almost in half. Bloomberg says
                                    the amount moved to Bermuda is
                                    equivalent to about 80 per cent of
                                    Google’s total pretax profit in
                                    2011.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">Tax
                                    evasion and avoidance costs the
                                    European Union a staggering €1
                                    trillion a year. That’s worth
                                    dwelling on for a moment longer…. €1
                                    trillion. No wonder politicians are
                                    now acting to try and prevent this
                                    financial loss and branding such
                                    acts as scandalous and immoral.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">Bloomberg
                                    has a good quote from a UK-based tax
                                    accountant, which pretty much sums
                                    up the feeling in Europe at the
                                    moment. According to Richard Murphy
                                    of Tax Research:</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px 0px 0px 40px"><cite style="padding:0px;margin:0px">“The
                                      tax strategy of Google and other
                                      multinationals is a deep
                                      embarrassment to governments
                                      around Europe. The political
                                      awareness now being created in the
                                      UK, and to a lesser degree
                                      elsewhere in Europe, is: It’s us
                                      or them. People understand that if
                                      Google doesn’t pay, somebody else
                                      has to pay or services get cut.”</cite></p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">Just
                                    look what happened to Starbucks.
                                    When the public discovered the US
                                    coffee giant paid zero taxes in the
                                    UK (yes, absolutely nothing at all),
                                    it started to boycott the chain.</p>
                                  <div style="padding:0px;margin:15px 0px 10px;text-align:center">
                                    <div style="padding:0px;margin:0px;color:rgb(128,128,128);font-size:10px">Advertisement</div>
                                  </div>
                                  As a result, Starbucks was forced to
                                  “volunteer” to pay taxes…
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">The
                                    UK is Google’s second-biggest
                                    market, responsible for about 11 per
                                    cent of its sales. Of the $4 billion
                                    it turned over last year, it paid UK
                                    corporation tax of less than $10
                                    million. Bloomberg says Google
                                    avoids tax by using an Irish
                                    subsidiary to collects revenues from
                                    ads sold in the UK, which then pays
                                    royalties to another Irish
                                    subsidiary whose legal residence is
                                    in Bermuda. Payments are then sent
                                    to yet another subsidiary in the
                                    Netherlands (with no employees,
                                    note) before finally reaching the
                                    tax haven of Bermuda.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">Sounds
                                    pretty ‘evil’ to me. And if so, then
                                    that’s against the internet
                                    company’s guiding principles. Stated
                                    clearly on the “Ten Things We Know
                                    to be True” page on <a href="http://www.google.com/about/company/philosophy/" style="padding:0px;margin:0px;color:rgb(57,48,44)" target="_blank">Google</a>’s
                                    website is the following:</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px 0px 0px 40px"><cite style="padding:0px;margin:0px">“You
                                      can make money without doing
                                      evil.”</cite></p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px"> I’m
                                    sorry, Google, but I don’t see how
                                    avoiding tax is anything but evil.
                                    Of course you – and all companies –
                                    have a duty to shareholders to
                                    maximise profits. But there are
                                    rules. Some of these are merely
                                    ethical, whilst some are legal.
                                    There is no indication or suggestion
                                    that Google has acted illegally, but
                                    there is every suggestion that it
                                    has acted unethically.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">And
                                    who said you can’t have ‘ethical
                                    companies’? Of course you can. I
                                    don’t buy the ‘extreme capitalist’
                                    viewpoint that corporations will
                                    only act in self-interest and never
                                    “do the right thing” or pay their
                                    fair share. If their customers start
                                    to boycott their services, then
                                    they’ll change. It happened with the
                                    sudden emergence of all the
                                    so-called ‘corporate responsibility’
                                    positions that all featured heavily
                                    in annual reports. I don’t see why
                                    it can’t happen with fair tax
                                    positions.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">Other
                                    ICT companies reported in the media
                                    to be using this complicated tax
                                    evasion (sorry lawyers, of course I
                                    mean ‘mitigation’…) structure
                                    include Apple, Facebook, Microsoft
                                    and Oracle. Unfortunately, Google –
                                    and all the others, who no doubt
                                    will soon be named and shamed – will
                                    continue their sharp practices until
                                    they are forced to make a change. If
                                    governments can’t do that through
                                    the legal process, then it’s up to
                                    customers to vote with their feet
                                    and walk away from Google services.
                                    As Richard Murphy said, consumers
                                    are beginning to get the message
                                    that it’s “us or them”, and we’re
                                    already being squeezed by the many
                                    austerity measures that are in
                                    effect to drag us out of recession.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px">Come
                                    on Google, time to step up to the
                                    plate and show some leadership. Pay
                                    your fair share. And then the rest
                                    of the ICT industry can do likewise.
                                    Or else remove that fatuous and
                                    out-dated “don’t do evil” slogan
                                    from your website once and for all.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                  <p style="padding:0px;margin:0px"><u style="padding:0px;margin:0px">Further
                                      reading: </u>The <a href="http://www.pearse-trust.ie/blog/bid/86105/US-Companies-Their-Use-Of-The-Double-Irish-Dutch-Sandwich" style="padding:0px;margin:0px;color:rgb(57,48,44)" target="_blank">Pearse
                                      Trust</a> blog has a detailed
                                    explanation of the so-called “Double
                                    Irish Dutch Sandwich” tax scheme.
                                    Please don’t try and implement it.</p>
                                  <p style="padding:0px;margin:0px"> </p>
                                </div>
                              </blockquote>
                            </div>
                            <br>
                            <br clear="all">
                            <div><br>
                            </div>
                            -- <br>
                            <div>Salanieta Tamanikaiwaimaro aka Sala</div>
                            <div>P.O. Box 17862</div>
                            <div>Suva</div>
                            <div>Fiji</div>
                            <div><br>
                            </div>
                            <div>Twitter: @SalanietaT</div>
                            <div>Skype:Salanieta.Tamanikaiwaimaro</div>
                            <div>Tel: <a href="tel:%2B679%203544828" value="+6793544828" target="_blank">+679
                                3544828</a></div>
                            <div>Fiji Cell: <a href="tel:%2B679%20998%202851" value="+6799982851" target="_blank">+679
                                998 2851</a></div>
                            <div><br>
                            </div>
                            <div> </div>
                            <div><font color="#222222" face="arial,
                                sans-serif"><span style="line-height:16px"><br>
                                </span></font></div>
                            <br>
                          </blockquote>
                          <br>
                        </div>
                      </div>
                    </div>
                    <br>
                  </div>
                </div>
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            <div>
              <div><br>
                <br clear="all">
                <div><br>
                </div>
                -- <br>
                <div>Salanieta Tamanikaiwaimaro aka Sala</div>
                <div>P.O. Box 17862</div>
                <div>Suva</div>
                <div>Fiji</div>
                <div><br>
                </div>
                <div>
                  Twitter: @SalanietaT</div>
                <div>Skype:Salanieta.Tamanikaiwaimaro</div>
                <div>Tel: <a href="tel:%2B679%203544828" value="+6793544828" target="_blank">+679 3544828</a></div>
                <div>Fiji Cell: <a href="tel:%2B679%20998%202851" value="+6799982851" target="_blank">+679 998 2851</a></div>
                <div><br>
                </div>
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                <div><font color="#222222" face="arial, sans-serif"><span style="line-height:16px"><br>
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            ____________________________________________________________<br>
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