corporate tax

G8 summit There have already been rifts over the issue of armaments in Syria.
♦ While leaders have been at loggerheads, Assad’s regime has been able to take advantage of the lack of US leadership, writes Roula Khalaf.
♦ The decision to send unspecified military support to the rebels will be dangerous, but it is more risky to stay out, says David Gardner: “Leaving Syria to its present devices will create an Afghanistan in the eastern Mediterranean”.
♦ Maureen Dowd thinks that Obama is being “schooled” by the Clintons: “After dithering for two years over what to do about the slaughter in Syria, the president was finally shoved into action by the past and perhaps future occupant of his bedroom.”
Tax avoidance will be another G8 hot topic: Eric Schmidt, the chairman of Google, thinks corporate tax systems need to be simplified. If you want to read more about the debate so far, take a look through our reporting on the Great Tax Race.

♦ Mayor Bloomberg takes on a new cause: making it mandatory for New Yorkers to separate their food scraps for composting.
♦ Food for thought: is marriage in decline because there is less demand for husbands?
♦ China plans to move 250m rural residents – that’s about five times the population of South Korea – into newly constructed towns and cities over the next 12 years. Elsewhere in the world, cities are turning into vast gated communities for the one per cent.
♦ The BBC speaks to Sonali Deraniyagala, who lost everything in the 2004 tsunami.  Read more

♦ The FT argues today that Apple’s decision to borrow money in order to fund a dividend, despite being one of America’s most liquid companies, indicates a need for reform to the US tax system.
♦ Despite impressive economic growth, improvements in living standards in Malaysia have lagged behind those of its neighbours, building pressure for change ahead of Sunday’s election.
♦ North African governments are trying to stem the flow of young Islamic militants, heading to Syria to fight the regime.
♦ President François Hollande is struggling to please everyone and, in fact, anyone – leading to concerns that France might become the next European problem child. After a draft paper by the president’s party described Angela Merkel as “selfish”, Mr Hollande has had to reassure her that he still believes in a Franco-German relationship.
♦ William Finnegan discusses his article on Mark Lyttle, a US citizen from North Carolina who was deported to Mexico despite ample evidence that he was an American, and the soaring number of deportations.
♦ Dzhokhar Tsarnaev has told the FBI that he and his brother considered suicide attacks on July 4, but instead decided to strike on Patriots’ day.
♦ Politics and vetting processes mean that Barack Obama has yet to fill some long-empty posts in his cabinet.
♦ Evangelical Christians in California have struck up a debate over whether yoga is a religion or not – where is the line between the body and the soul?
♦ SAYA, a Jerusalem-based design studio, is trying to provide a architectural resolutions to territorial disputes: “you can’t stop terror with just a fence. We need to imagine structures that can build hope instead of fear and resentment.”
♦ When Alex Christodoulou tried to quit his job for life in the Greek public sector, he found the process harder (and more labyrinthine) than he ever thought it could be, especially when the government had committed to taking thousands of workers off the public payroll. “They wanted to rehire him so that they could fire him and include him in the number of public servants being laid off to appease Greece’s international creditors”.
♦ In a review of The Impossible State: North Korea, Past and Future, Richard Lloyd Parry argues against the idea that North Korea is a “zombie nation”, but wonders if the idea that the country is in a state of “political undeath” doesn’t perhaps suit some other states.
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♦ Ireland’s head of state says the EU must drop its “hegemonic” economic model and reform the ECB, or risk social upheaval and a loss of popular legitimacy.
♦ The Great Tax Race series turns to Ireland, looking at how Ireland has remained attached to aggressive tax policies that favour businesses even as ordinary people have struggled to get by. (If you’re trying to get your head around how all of this even works, watch this handy explainer from Matt Steinglass)
♦ Richard McGregor thinks President Obama needs to circumvent Congress if he wants to get his agenda moving.
♦ Western clothing companies are scrambling to address public concerns over working conditions in Bangladesh – the Walt Disney Company ordered an end to the production of branded merchandise in the country before Rana Plaza collapsed. John Gapper today makes the argument against western companies withdrawing: “Despite everything, the industry provides better-paid jobs than the alternative – working on rural farms – and has helped to emancipate women.”
♦ Despite violence and corruption, Afghan entrepreneurs are still making opportunities for themselves.
♦ The Kremlin is putting pressure on VKontakte, a Russian Facebook clone, pushing CEO Pavel Durov to leave the country.
♦ Slate is publishing a series of excerpts from the memoirs of Mohamedou Oul Slahi who was a prisoner at Guantánamo for nearly 11 years.
♦ Mafia historian goes underground into the bunkers of the Ndrangheta, Europe’s biggest cocaine traffickers and Italy’s most powerful organised crime group.
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Another runner in the Great Tax Race: Susana Martinez, governor of New Mexico, hopes that recently approved cuts to corporate tax rates will help diversify its economy – following on from a tax incentive measure for the film industry designed to attract more television productions like Breaking Bad.
♦ As the Syrian state pulls back, necessity has forced rebel fighting brigades to take on the role of governing the towns and villages across rural northern Syria.
♦ Chile is embroiled in an embarrassing statistical scandal, casting a cloud over Sebastián Piñera’s final months in office. It seems analysts were right to question how he kept inflation at just 1.5 per cent despite growth of 5.6 per cent.
♦ The US seems to be headed for a manufacturing renaissance.
♦ Since the revolution, Cairo residents have turned to do-it-yourself infrastructure as they grapple with getting about from day to day. The New York Times has photographed the boom in illegal construction.
♦ The New York Times has also profiled Sohel Rana, the most hated man in Bangladesh: “He traveled by motorcycle, as untouchable as a mafia don, trailed by his own biker gang.”
♦ IBM has created the world’s smallest film by manipulating single atoms on a copper surface.
♦ Cash is still king in China, where home buyers make payments in trunks filled with cash and monthly salaries are delivered in armoured cars.
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♦ In the first installment of our Great Tax Race series, Vanessa Houlder examines how the Netherlands and Luxembourg managed to book more foreign direct investment than the US, UK and Germany together. Exploitation of cracks in the international tax system has ignited intense anger from an austerity-weary public. Matt Steinglass looks at how the Netherlands wants to change its tax haven image, but is wary of scaring businesses away.
♦ Italy has a new government and it has already been met with mayhem.
♦ Just after winning the most votes in Iceland’s parliamentary elections, the head of the centre-right Independence party has said the government needs to focus on restoring growth.
♦ Anne-Marie Slaughter thinks President Obama should keep the Rwandan genocide in mind when weighing up action in Syria.
♦ The 26-year-old Chinese entrepreneur who was kidnapped by the Tsarnaev brothers describes his harrowing experience. The Boston Globe has also pulled together a timeline of the hunt for the bombing suspects.
♦ William Zinsser, author of “On Writing Well”, is still counselling people on the subject at the age of 90. He holds one-to-one sessions with people who read their writing out to him, as he cannot see, and only accepts sandwiches as payment.
♦ Maryam Sharif takes to the street to canvass for her father who is likely to become Pakistan’s PM for a third time: “It’s a beautiful feeling to be loved”.
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Across the world, the ability of multinationals to exploit cracks in the international tax system has angered an austerity-weary public. But as policy makers draw up plans to close such gaps, the spotlight has fallen on the countries that help them pay less tax. Does it really make financial sense for Ireland to have a corporate tax rate of 12.5 per cent? Why are some American states looking to cut their corporate tax rates even as they struggle to pay for basic services? Why do countries compete instead of collaborate on tax?

As part of a new Financial Times’ series, the Great Tax Race, the FT’s taxation correspondent Vanessa Houlder was online on The World Blog on Tuesday and answered your questions about tax avoidance. Please see the comments section for her answers.

Here is a sample of some of the pieces in the series: Read more