Cable attacks company ‘tax abuse’

18 November 2012 Last updated at 07:14 ET

Vince Cable: “It is completely unacceptable when there is systematic abuse taking place”

Business Secretary Vince Cable has condemned corporate tax avoidance as “completely unacceptable”, saying there are “appalling stories of abuse”.

He told the BBC’s Andrew Marr Show UK authorities should do more to stop it.

However, he said that tackling the issue required international agreement as well as domestic action.

His comments came after executives from Starbucks, Google and Amazon were grilled by MPs, although the firms say they operate within the tax rules.

The executives were questioned earlier this month by the Public Accounts Committee about how they used favourable European tax jurisdictions for their UK businesses.

Starbucks, for example, has made a taxable profit only once in its 15 years of operating in the UK. As a consequence, the company is thought to have paid just £8.6m in corporation tax over the period.

During the hearing with MPs, Starbucks admitted the Dutch government had granted a special tax deal on its European headquarters, which receives royalty payments from its UK business.

‘Intensive investigation’

Mr Cable told Andrew Marr: “The best off in society have got to contribute more, and that includes companies.”

Amazon’s Andrew Cecil was condemned by MPs for failing to answer questions

He acknowledged that smaller companies, many of which face competitive pressures from the major firms, will be angered by the situation.

“There’s nothing more galling to small and medium-sized enterprises when they are paying (tax), and others are dodging it,” Mr Cable said. “Our own tax authorities have got to be very tough on things like royalty payments, which is where a lot of the subterfuge takes place.”

However, he said that finding a solution was difficult, especially as the UK had to make itself attractive to inward investors. “The big question is whether you can get wider (international) agreement,” he said.

As companies are using favourable tax jurisdictions overseas there needs to “a combination of action at the international level as well as beef up our own capacity to deal with it”.

Mr Cable said: “It is quite difficult to drill down to what the problems are. Starbucks claims they are actually making losses in the UK. I don’t know whether they are not but you would need some pretty intensive investigation by the Inland Revenue to establish what exactly is going on, whether their transfer prices and their royalties are being fiddled or not.”

All the companies under fire over the amount of corporation tax paid said that they operated within the tax rules and regulations and have done nothing wrong.

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Israel, Gaza fighting rages on as Egypt seeks truce

GAZA/JERUSALEM (Reuters) – Israel bombed Palestinian militant targets in the Gaza Strip from air and sea for a fifth straight day on Sunday, preparing for a possible ground invasion though Egypt saw “some indications” of a truce ahead.

Militant rocket fire into Israel subsided during the night but resumed in the morning with three rockets fired at the nearby coastal city of Ashkelon, the Israeli army said.

“As of now we have struck more than 1,000 targets, so Hamas should do the math over whether it is or isn’t worth it to cease fire,” Israeli Vice Prime Minister Moshe Yaalon, over Twitter.

“If there is quiet in the South and no rockets and missiles are fired at Israel’s citizens nor terrorist attacks engineered from the Gaza Strip, we will not attack.”

Forty-eight Palestinians, about half of them civilians, including 13 children, have been killed in Israel’s raids, Palestinian officials said. More than 500 rockets fired from Gaza have hit Israel, killing three people and injuring dozens.

Israel unleashed intensive air strikes on Wednesday, killing the commander of the Hamas Islamist group that governs Gaza and spurns peace with the Jewish state. Israel’s declared goal is to deplete Gaza arsenals and press Hamas into stopping cross-border rocket fire that has plagued Israeli border towns for years.

Air raids continued past midnight into Sunday, with warships shelling from the sea. A Gaza City media building was hit, witnesses said, wounding 6 journalists and damaging facilities belonging to Hamas’s Al-Aqsa TV as well as Britain’s Sky News.

An Israeli military spokeswoman said the strike had targeted a rooftop “transmission antenna used by Hamas to carry out terror activity”.

Two other predawn attacks on houses in the Jabalya refugee camp killed two children and wounded 13 other people, medical officials said.

These attacks followed a defiant statement by Hamas military spokesman Abu Ubaida, who told a news conference: “This round of confrontation will not be the last against the Zionist enemy and it is only the beginning.”

The masked gunman dressed in military fatigues insisted that despite Israel’s blows Hamas “is still strong enough to destroy the enemy”.

An Israeli attack on Saturday destroyed the house of a Hamas commander near the Egyptian border.

Casualties there were averted however, because Israel had fired non-exploding missiles at the building beforehand from a drone, which the militant’s family understood as a warning to flee, and thus their lives were spared, witnesses said.

Israeli aircraft also bombed Hamas government buildings in Gaza on Saturday, including the offices of Prime Minister Ismail Haniyeh and a police headquarters.

Among those killed in air strikes on Gaza on Saturday were at least four suspected militants riding motorcycles, and several civilians including a 30-year-old woman.

ISRAELI SCHOOLS SHUT

Israel said it would keep schools in its south shut on Sunday as a precaution to avoid casualties from rocket strikes reaching as far as Tel Aviv and Jerusalem in the past few days.

Israel’s “Iron Dome” missile interceptor system destroyed in mid-air a rocket fired by Gaza militants at Tel Aviv on Saturday, where volleyball games on the beach front came to an abrupt halt as air-raid sirens sounded.

Hamas claimed responsibility for the attack on Tel Aviv, the third against the city since Wednesday. It said it had fired an Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of Gaza.

In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.

Israel’s operation has drawn Western support for what U.S. and European leaders have called Israel’s right to self-defense, but there was also a growing number of calls from world leaders to seek an end to the violence.

British Prime Minister David Cameron “expressed concern over the risk of the conflict escalating further and the danger of further civilian casualties on both sides,” in a conversation with Israeli Prime Minister Benjamin Netanyahu, a spokesperson for Cameron said.

London was “putting pressure on both sides to de-escalate,” the spokesman said, adding that Cameron had urged Netanyahu “to do everything possible to bring the conflict to an end.”

Ben Rhodes, a deputy national security adviser to President Barack Obama, said the United States would like to see the conflict resolved through “de-escalation” and diplomacy, but also believes Israel has a right to self-defense.

Egyptian President Mohamed Mursi said in Cairo as his security deputies sought to broker a truce with Hamas leaders, that “there are some indications that there is a possibility of a ceasefire soon, but we do not yet have firm guarantees.”

Egypt has mediated previous ceasefire deals between Israel and Hamas, the latest of which unraveled with recent violence.

A Palestinian official told Reuters the truce discussions would continue in Cairo on Sunday, saying “there is hope,” but it was too early to say whether the efforts would succeed.

In Jerusalem, an Israeli official declined to comment on the negotiations. Military commanders said Israel was prepared to fight on to achieve a goal of halting rocket fire from Gaza, which has plagued Israeli towns since late 2000, when failed peace talks led to the outbreak of a Palestinian uprising.

Diplomats at the United Nations said Secretary-General Ban Ki-moon is expected to visit Israel and Egypt in the coming week to push for an end to the fighting.

POSSIBLE GROUND OFFENSIVE

Israel, with tanks and artillery positioned along the frontier, said it was still weighing a ground offensive.

Israeli cabinet ministers decided on Friday to more than double the current reserve troop quota set for the Gaza offensive to 75,000 and around 16,000 reservists have already been called up.

Asked by reporters whether a ground operation was possible, Major-General Tal Russo, commander of the Israeli forces on the Gaza frontier, said: “Definitely.”

“We have a plan. … It will take time. We need to have patience. It won’t be a day or two,” he added.

A possible move into the densely populated Gaza Strip and the risk of major casualties it brings would be a significant gamble for Netanyahu, favored to win a January election.

The last Gaza war, a three-week Israeli blitz and invasion over the New Year of 2008-09, killed 1,400 Palestinians, mostly civilians. Thirteen Israelis died in the conflict.

But the Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.

One major change has been the election of an Islamist government in Cairo that is allied with Hamas, potentially narrowing Israel’s maneuvering room in confronting the Palestinian group. Israel and Egypt made peace in 1979.

(Writing by Allyn Fisher-Ilan; Editing by Douglas Hamilton)

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So, Here’s That ‘Big Bang Theory’ Flashmob You Wanted

We realize there’s only so much time one can spend in a day watching new trailers, viral video clips, and shaky cell phone footage of people arguing on live television. This is why every day The Atlantic Wire highlights the videos that truly earn your five minutes (or less) of attention. Today:

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Psychologist Richard Wiseman has an interactive game for you to let you know you’re just predictable. To be fair, a couple of us tried it out and were not as predictable as Wiseman thought we were going to be. But without further ado, here it is (have some screen cleaner ready):

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We too are very excited for the Disney installments of Star Wars. New movies, Ewoks, whatever count us in. We’re just not this excited: 

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If you don’t know, The Big Bang Theory is basically a show about a bunch of really smart, really nerdy dorks. Now when it comes to the actual cast of The Big Bang Theory, we’re only pretty sure (and happy to be proven wrong) only one of those things apply:

And finally, do you have $ 37? If so, would you mind donating it to The Atlantic Wire robot fish aquarium fund? We promise, it’s totally a great cause. Thanks in advance!

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“Partners” Canceled by CBS

LOS ANGELES (TheWrap.com) – CBS’s freshman comedy “Partners” has been canceled, an individual with knowledge of the situation told TheWrap on Friday.

“Partners,” which starred Michael Urie and David Krumholtz, and centered around the “bromance” between two co-workers, one gay and one straight, premiered September 24 and occupied the Monday at 8:30 slot.

Its most recent episode scored a 1.8 rating/5 share in the advertiser-coveted 18-49 demographic – down 14 percent from the previous week, and its poorest showing to date. While the show had strong network support, it proved to be the weak link in CBS’s Monday night comedy lineup, the rest of which – “2 Broke Girls,” “How Met Your Mother” and “Mike & Molly” – has been on an upward trajectory.

“Partners” was created by “Will & Grace” writers David Kohan and Max Mutchnick and was loosely based on their own lives.

A “Two and a Half Men” repeat will air in the show’s former timeslot next week.

This makes the second cancellation for the network so far this year, following “Made in Jersey.”

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Tulsa Town Hall: Nutrition a valuable tool in health care

Weil spoke as part of the Tulsa Town Hall series of speakers.

The United States has an expensive health-care system that doesn’t produce good results, he said.

“Something is very wrong with this picture,” he said. “We’re spending more and more and we have less and less to show for it.”

Changes in diet can be an effective treatment for many conditions, but American physicians are functionally illiterate in nutrition, he said.

“The whole subject of nutrition is omitted in medical education,” he said.

There are many ways of managing diseases other than drugs, he said. Integrative medicine, which can include dietary supplements and practices like meditation, is the future of health care, he said.

The health system is resistant to change because of entrenched vested interests. That includes pharmaceutical companies that do direct-to-consumer advertising, which should be stopped, he said.

“As dysfunctional as our health-care system is at the moment – and it is very dysfunctional – it is generating rivers of money,” he said. “That money is going into very few pockets.”

Weil has developed an anti-inflammatory diet based on the Mediterranean diet but with Asian influences.

Inflammation is associated with some heart disease, Alzheimer’s disease and some cancers, he said. And as a result, people should be eating real, unprocessed foods and whole grains. They should stay away from sugar-sweetened beverages, including fruit juice, he said.

“The new research that’s being done on sugar is not very comforting,” he said.

The aging process can’t be avoided, but age-related diseases can be avoided by proper care, he said.

“The goal should be to live long and well with a big drop off at the end,” he said.

Weil is the director of the University of Arizona’s Center for Integrative Medicine.

Tickets to the Tulsa Town Hall series are sold as a $ 75 subscription and cover five lectures. Tickets for individual lectures are not available.

To subscribe, visit tulsaworld.com/tulsatownhall, call 918-749-5965 or write to: Tulsa Town Hall, Box 52266, Tulsa, OK 74152.

Future speakers include journalist Ann Compton on Feb. 8; author James B. Stewart on April 5; historian and cinematographer Rex Ziak on May 10.

Original Print Headline: Speaker highlights nutrition

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Shannon Muchmore 918-581-8378
shannon.muchmore@tulsaworld.com
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RIM to spice BlackBerry 10 AppWorld with local flavors

WATERLOO, Ontario (Reuters) – Research In Motion is pushing for app quality, not quantity, with its make-or-break BlackBerry 10 devices set for launch on January 30, and targeting applications to customers in various regions.

RIM’s projected 100,000 apps – a record for any new platform at launch – will still be a fraction of those available on Apple Inc or Google Inc devices.

But it is a stronger showing than RIM’s PlayBook tablet computer which was slammed at its 2011 launch for a dearth of apps and incomplete software.

In an interview with Reuters on Wednesday, RIM Chief Executive Thorsten Heins admitted that app libraries play a crucial role in the success or failure of smartphones. But he said the game is not just about numbers.

“The tactic we are deploying is by country and by region. We are aiming to have the most important 200 to 400 apps available, because many applications are regional and they really do have a regional flavor,” Heins said.

RIM says it aims to offer both the most popular applications in the market, and also those most relevant to Blackberry aficionados – people Heins described as hyper-connected multi-taskers who need to get things done.

RIM’s ultra-secure BlackBerry was once the smartphone of choice for government and corporate elites. But rivals have taken giant bites out of RIM’s market share, especially in North America, and the company’s stock has slumped. The BlackBerry remains popular in many emerging markets, partly for its popular BBM messaging system.

With this in mind, RIM has hosted events with developers across the globe.

“We’ve done 30 jam conferences in various cities all around the world, to get the bucket filled with meaningful local apps and not just a huge bunch of applications that you collect and throw at your audience,” he said. “It is a very, very targeted approach.”

Heins, who has met with customers and carriers in a series of whirlwind global tours, came across as relaxed and confident in the interview, in RIM’s Waterloo headquarters.

Speaking rapid fire English with just a hint of an accent from his native Germany, he acknowledged that RIM’s fate may depend on the success of BB10, but he said feedback from clients has been very encouraging.

RIM hopes its new line of BB10 smartphones will help it claw back market share from Apple’s iPhone and devices powered by Google’s Android operating system. Developers say like what they see, but analysts are not convinced that RIM’s gamble on BB10 will succeed.

BIG NAME DRAWS

In terms of numbers, RIM’s app offering will remain far behind the Apple and Google app stores, each of which boast over 700,000 apps. But Heins said he was not worried.

“In my view it is really short-sighted to say, you have 600,000, you have 400,000 and you only have 100,000 apps, so you are not good,” he said.

“Look at how many actually get downloaded. … BlackBerry App World today is still the most profitable portal for application developers – it has the highest number of paid for downloads.”

In a small dig at his rivals, he added: “We don’t have 1,500 Solitaire apps. That is not what Blackberry is about.”

RIM has already said it plans business focused apps from the likes of Cisco WebEx, Box, SAP and Blackboard, as well as music and movie apps like TuneIn, Nobex and Popcornflix and gaming apps from developers like Gameloft, Halfbrick and Paw Print Games.

Heins has said social networks such as LinkedIn, Foursquare, Twitter and Facebook will all have apps for BB10 at launch. But he declined to name any of the other big name apps that RIM will have on board come launch day.

“Allow me to talk to you about this on January 30, otherwise I’m losing a lot of thunder,” he said.

(Editing by Janet Guttsman and Richard Chang)

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Final “Twilight” dawns with $30 million from late-night shows

LOS ANGELES (Reuters) – Bella and Edward’s big-screen farewell lit up box offices with $ 30.4 million in late-night ticket sales for the finale of the blockbuster “Twilight” vampire series, production studio Summit Entertainment said on Friday.

The U.S. and Canadian box office receipts for “The Twilight Saga: Breaking Dawn, Part 2″ beat initial sales for each of the previous four films in the franchise, though the final installment got a boost from late Thursday night previews.

Last year’s “Breaking Dawn, Part 1″ kicked off with $ 30.3 million from shows just after midnight on the Friday that it debuted, according to figures from Hollywood.com. Summit, a unit of Lions Gate Entertainment Corp, did not provide Friday-only numbers for “Breaking Dawn, Part 2.”

The record for opening-night sales belongs to “Harry Potter and the Deathly Hallows, Part 2,” the finale in the boy-wizard series that grabbed $ 43.5 million when it debuted in July 2011.

Box office watchers say the “Twilight” finale has a shot at setting the franchise record for opening weekend sales when receipts through Sunday are tallied. “The Twilight Saga: New Moon,” released in November 2009, now ranks as the biggest opening in the series, with $ 142.8 million in sales over the first three days after its release in November 2009.

“Breaking Dawn – Part 2″ stars Kristen Stewart, Robert Pattinson and Taylor Lautner in the conclusion of angst-ridden vampire and werewolf love triangle created by author Stephenie Meyer in a series of young adult books. In the final film, wedded vampires Bella and Edward must protect their daughter from an ancient vampire clan.

Opening weekend will get a lift from fans who rush out to see the movie because it is the last film in the popular series, said Paul Dergarabedian, president of the box office division of Hollywood.com. He projects domestic three-day sales will reach $ 145 million to $ 150 million.

“Like ‘Potter,’ the final installment of this will benefit from the cachet of being the last one,” he said.

(Reporting By Lisa Richwine; editing by Andrew Hay)

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CDC Report: Number of U.S. Adults with Diabetes Has Skyrocketed

The U.S. Centers for Disease Control and Prevention (CDC) released the findings from its latest Morbidity and Mortality Weekly Report (MMWR) on Thursday, which focused on the prevalence of diabetes among American adults. The MMWR stated that the number of new cases of diabetes, particularly type 2 diabetes, has risen dramatically in the last 15 years across the country, especially in some of the southern states.

The report looked at self-reported data collected from the participants of the study between the years of 1995 and 2010. The data was sorted and analyzed using a CDC system known as the Behavioral Risk Factor Surveillance System to determine whether or not the average rate of diabetes had increased over time, and if so, by how much.

Here is some of the key information to emerge from the CDC’s latest MMWR release about diabetes.

* According to the MMWR, diabetes prevalence was higher than 6 percent of the adult population in only three states at the start of the study in 1995. Puerto Rico and Washington, D.C., also had a greater than 6 percent prevalence of adult diabetes at that time.

* In 2010, at the conclusion of the study, every U.S. state, along with Puerto Rico and Washington, D.C., reported a prevalence of diabetes among its adult population that was greater than or equal to 6 percent. In addition, six states as well as Puerto Rico reported a prevalence of diabetes among their adult populations of greater than or equal to 10 percent.

* All of the participants in the study were 18 years or older. The study was conducted through telephone surveys.

* According to a report by Reuters regarding the study, Oklahoma was the state that had the largest increase in the percentage of adults living within its borders who have been diagnosed with diabetes. Kentucky was next, followed by Georgia, Alabama, Washington and West Virginia.

* Linda Geiss, the lead author of the study, told CNN on Thursday that she was surprised by the research team’s findings, saying that the “level of increase was shocking to me.” Specifically, Geiss was referring to the fact that the team found that the number of adults living with diabetes increased by at least 100 percent in 18 different states over the course of their research.

* The states that charted the highest percentage increases in the number of new diabetes cases also have had some of the highest increases in the number of adults who are considered obese, according to the CNN report.

* Geiss told CNN on Thursday that a person “should know that” they “can prevent the disease or delay it” by getting more exercise, adjusting their diet, and losing weight.

Vanessa Evans is a musician and freelance writer based in Michigan, with a lifelong interest in health and nutrition issues.

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Jamaica to abolish slavery-era flogging law

KINGSTON, Jamaica (AP) — Jamaica is preparing to abolish a slavery-era law allowing flogging and whipping as means of punishing prisoners, the Caribbean country’s justice ministry said Thursday.

The ministry said the punishment hasn’t been ordered by a court since 2004 but the statutes remain in the island’s penal code. It was administered with strokes from a tamarind-tree switch or a cat o’nine tails, a whip made of nine, knotted cords.

Justice Minister Mark Golding says the “degrading” punishment is an anachronism which violates Jamaica’s international obligations and is preventing Prime Minister Portia Simpson Miller‘s government from ratifying the U.N. convention against torture.

“The time has come to regularize this situation by getting these colonial-era laws off our books once and for all,” Golding said in a Thursday statement.

The Cabinet has already approved repealing the flogging law and amendments to other laws in the former British colony, where plantation slavery was particularly brutal.

The announcement was welcomed by human rights activists who view the flogging law as a barbaric throwback in a nation populated mostly by the descendants of slaves.

“We don’t really see that (the flogging law) has any part in the approach of dealing with crime in a modern democracy,” said group spokeswoman Susan Goffe.

But there are no shortage of crime-weary Jamaicans who feel that authorities should not drop the old statutes but instead enforce them, arguing that thieves who steal livestock or violent criminals who harm innocent people should receive a whipping to teach them a lesson.

“The worst criminals need strong punishing or else they’ll do crimes over and over,” said Chris Drummond, a Kingston man with three school-age children. “Getting locked up is not always enough.”

The last to suffer the punishment in Jamaica was Errol Pryce, who was sentenced to four years in prison and six lashes in 1994 for stabbing his mother-in-law.

Pryce was flogged the day before being released from prison in 1997 and later complained to the U.N. Human Rights Committee, which ruled in 2004 that the form of corporal punishment was cruel, inhuman and degrading and violated his rights. Jamaican courts then stopped ordering whipping or flogging.

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After Garbo, Leigh, no defining “Anna Karenina”: Knightley

LOS ANGELES (Reuters) – Film adaptations of “Anna Karenina” have featured the likes of Greta Garbo and Vivien Leigh, but Keira Knightley isn’t fazed about measuring up to such silver screen luminaries with a new cinematic take on Leo Tolstoy‘s classic novel.

The British actress’s turn in the title role in the timeless story about a beautiful married socialite in 1870s Russia who embarks on a passionate affair with a cavalry officer, follows the 1935 version starring Garbo and the 1948 film with Leigh. It is released in the United States on Friday.

“Although there have been many famous actresses play her, there’s never been a definitive version of ‘Anna Karenina,’” Knightley said in an interview. “I think it’s partly because of the relationship you have with the character. She poses more questions than she answers, so it’s always open to different interpretation.”

Knightley stars opposite Jude Law as her husband, and Aaron Taylor-Johnson as the dashing Count Vronsky, and teams up again with filmmaker Joe Wright in their third film together after previous book-to-film collaborations with 2007′s “Atonement” and 2005′s “Pride & Prejudice.”

The film debuted at the Toronto film festival to warm reviews for Knightley‘s performance. Critics have said the film is overall technically and visually accomplished but lacks a cohesive emotional punch.

Adapted by playwright Tom Stoppard, Wright’s “Anna Karenina” takes place mostly in a theater setting and sees the title character more high-strung and less sympathetic than in previous incarnations.

The director said he cast Knightley, 27, because he felt she could tap into all the internal elements of Anna.

“She was 18 when we made ‘Pride & Prejudice‘, just a kid,” said Wright. “I’ve seen her develop from stunning ingénue to great actress. I felt that she was stronger, braver, even less conforming than she had been before.”

Knightley, newly engaged to musician James Righton, said she stood in moral condemnation over Anna,- “But am I any better than her? No.”

“I think we’re all her,” she added. “That is why she’s so terrifying. We all have bits of her personality within us. We can be wonderful, we can be loving, we can be full of laughter and full of life, and we can also be deceitful, malicious, needy and full of rage.”

WORLDS AWAY

While “Karenina” cements the perception of Knightley as a go-to actress for period pieces that also includes films like 2008′s “The Duchess” and 2004′s “King Arthur,” her career wasn’t always associated with roles grounded in the past.

Knightley spent the 1990s working in the British film and television industry before gaining international attention in the 2002 teenage soccer movie “Bend it Like Beckham.” After that, the actress said she was offered “an awful lot” of films in the teenage genre.

“The one thing that I knew right from the beginning was that I didn’t want to get into those high school movies,” she said. “I was never that interested in being a teenager. I was always interested in worlds away from my own.”

She credits the “massive” success of the “Pirates of the Caribbean” franchise – which saw her play Elizabeth Swan in the first three installments – as an integral part of her career and “a lot of the reason I was able to do other kinds of smaller films, because my name would help in financing them.”

Coming up, Knightley takes a turn away from costume dramas, in “Can A Song Save Your Life?” – a musical drama that sees her starring as an aspiring singer who meets a down-on-his-luck record producer, played by Mark Ruffalo. She’s currently shooting a reboot of the Tom Clancy thriller “Jack Ryan.”

“I got to the end of ‘Anna Karenina’ and I realized that I’d done about five years of work where I pretty much died in every movie and it was all very dark,” she said. “So I thought, okay, I want this year to be the year of positivity and pure entertainment.”

(Reporting by Zorianna Kit, editing by Christine Kearney and Patricia Reaney)

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