Issue link: https://maltatoday.uberflip.com/i/621909
44 Events maltatoday, Sunday, 3 January 2016 Apple to settle €318 million Italian tax dispute US technology giant Apple has agreed to pay €318 million to settle a tax dispute with Italian authorities after the iPhone and iPad maker was investigated for suspected fraud. The company's Italian subsidi- ary and several of its senior ex- ecutives had been under investi- gation for fraud over its alleged failure to comply with obligations to declare its earnings in Italy be- tween 2008 and 2013. Italy's tax authorities say the company failed to pay €880m in tax between 2008 and 2013, ac- cording to Italian daily news- paper La Repubblica. But, after months of negotiations, the tax authorities agreed to close the case in return for about a third of that amount. An Italy tax office spokesman confirmed the newspaper's re- port was accurate but would not divulge further details. Apple did not respond to a request for com- ment. The settlement comes amid mounting controversy over the tax arrangements of multination- al groups which stand accused of utilising complex cross-border corporate structures to reduce tax bills. Apple Italia is part of the com- pany's European operation which is headquartered in Ireland, a country with one of the lowest levels of corporation tax in the European Union and where large portions of the group's worldwide profits have been booked. Ireland taxes corporate earnings from normal business activities at a rate of 12.5%, which compares with a standard rate of 27.5% in Italy. This month, the Apple chief executive, Tim Cook, described accusations that the world's rich- est company was sidestepping US taxes by stashing cash overseas as "political crap" and insisted: "We pay every tax dollar we owe." The settlement of the tax dis- pute will not halt the criminal investigation into the conduct of three Apple Italia executives but will likely reduce the severity of any potential sanctions, La Re- pubblica said. The decision to sanction Ap- ple Italia marks a broader push by Italian authorities to shake off the country's bad reputation for tax dodging. By the government's own estimates, annual losses to tax evasion exceed €90bn with al- most half that down to sales taxes not being paid. Recent efforts by Matteo Renzi's government have sought to rein in the country's vast shadow econo- my and convince both individuals and companies to boost the state coffers. Earlier this month, Italy's econ- omy ministry hailed the success of a year-long voluntary disclo- sure scheme, which is expected to bring in at least €3.8bn. There were 130,000 declarations made under the amnesty, the ministry said, with the majority of hidden cash and assets held in Switzer- land. Italians working across the Swiss border will also have to face a stricter tax regime, after the two countries reached an agree- ment last week on how to tackle the issue. Once approved by both governments, the deal is expected to see commuters continue to pay tax in Switzerland and deduct this from income tax in Italy. The murky finances of the Vati- can have also been put under the spotlight this year, with the Holy See and Italy agreeing in April to share financial information. While the increased coopera- tion marks Italy's drive to catch tax evaders, it also ref lects Pope Francis' bid to reform the Vati- can administration which has been hit by waves of financial scandal and allegations of money laundering. Emirates expands services network in mainland China Emirates announced that it will expand its services in mainland China with four weekly flights to Yinchuan (INC) and Zhengzhou (CGO) utilising a Boeing 777- 200LR aircraft, starting from 3rd May 2016. These services will of- fer new international connectivity for two of China's fastest growing cities, and expand Emirates' desti- nation offering on the mainland to five, including: Beijing, Shanghai, and Guangzhou. Yinchuan, the capital of Ningxia, lies to the West of the Yellow River and to the East of Helan Mountain. With a large Muslim population, it serves as a gateway connecting China to Arabic countries, and is positioned as a hub for economic and trade cooperation and cultural exchange between China and the Middle East. Zhengzhou, the capital of Henan Province and a major transporta- tion interchange for central China, is an educational, technological and economic centre. The sec- ond largest city in central China, Zhengzhou's strategic location has enabled the city to become one of the largest economic hubs in Chi- na. Emirates' new services will con- nect Yinchuan and Zhengzhou with many new destinations via a convenient connection in Dubai, and help boost trade and tourism flows to the growing central and western parts of China where these cities are located. Emirates flights to Yinchuan and Zhengzhou on Boeing 777-200LR aircraft, will depart on Tuesday, Wednesday, Friday and Saturday from Dubai as EK326 at 02:45hrs arriving at Yinchuan Hedong In- ternational Airport at 13:35hrs. The service will then depart from Yinchuan at 15:20hrs and arrive at Zhengzhou Xinzheng Interna- tional Airport at 17:00hrs. The return flight, EK327, will depart Zhengzhou at 21:10hrs, arriving at Yinchuan at 22:55hrs. It will then depart Yinchuan at 00:40hrs, ar- riving in Dubai at 04:30hrs the next day*. Popular commodities expected to be transported on these services include electronics, such as mobile phones from Zhengzhou, and agri- cultural products such as goji ber- ries and cashmere from Yinchuan. As China looks to connect with the world through the 'Belt and Road Initiative', Dubai is well-posi- tioned to support China in achiev- ing the mutual benefits that will come from this Initiative, includ- ing deeper levels of co-operation and exchange. Located at the crossroads of East and West, Dubai is the largest im- port-export hub in the Middle East, connecting the world through its strong governance, extensive trade networks and global connectivity links. Ties between Dubai and Chi- na continue to grow stronger. A growing number of Chinese banks and businesses are establishing branches within Dubai's business and financial districts and the city is now home to over 3,000 Chinese companies and 200,000 Chinese residents. Growth in visitor num- bers to Dubai from China grew by 25% in 2014. Currently serving 54 cities in 30 of the 65 countries identified as part of the Belt and Road Initiative, Emirates is unique- ly positioned to support China in advancing its trade and investment links with these countries. Emirates operates a daily sched- uled flight between Dubai and Malta via Larnaca, Cyprus. For further information and flight schedules, one can visit the site: www.emirates.com/mt *Flight times are as per summer schedule GRTU, MCA launch tools for advancement of Maltese SMEs in the digital world The Malta Communications Authority and GRTU Malta Chamber of SMEs have launched a number of tailored tools that will proactively increase the number of businesses in Malta that have an online presence and are able to compete online. GRTU President Paul Abela stated that competition from the internet is one of the biggest concerns and challenges faced by Maltese businesses today. "It is a phenomenon that busi- nesses need to adapt to and GRTU is pleased to be working hand in hand with the Malta Communications Authority to supply Maltese businesses with the necessary tools that will en- able them to compete online". Over a 100 foreign companies have registered for the Maltese VAT through the MOSS sys- tem to be able to sell to Maltese consumers and pay the Maltese VAT rate. As part of a wider project fi- nanced by the European Social Fund (ESF) the GRTU has not only identified the gaps that are holding businesses back but it has also developed learning tools to address them. Thanks to ESF funds GRTU has developed a guidebook and an online learning tool, both aimed at upskilling businesses. These tools can help businesses go online for the first time as well as further develop and im- prove their online presence to be more effective and competi- tive. Following the launch of the National eCommerce Strategy last year, the MCA Chairman said that MCA continues with its commitment to facilitate the uptake in eCommerce by ensur- ing that traders have the nec- essary means to capitalise on opportunities brought about by eCommerce. The MCA is cog- nizant that in today's increas- ingly connected society, it is becoming ever so important for companies to develop and man- age an effective online channel, especially in view of the fact that although 69% of businesses claim to have a website, only 14% were selling online in 2013, with the remaining sales occur- ring mainly through traditional brick-and-mortar stores. It is therefore becoming criti- cal for traders to be able to find the right expertise and support when setting up an online store or extending their business on- line. To this end, the Authority has re-visited the eCommerce guides for business, which it had launched some years back, and incorporated these in a website together with the online direc- tory, BLINK, so as to provide traders with a more compre- hensive and practical reference tool. The eCommerce Guides for SMEs' website is purposely designed around a number of categories reflecting the differ- ent phases that are usually re- quired to set up an online shop. It features information related to legislation, website planning, online security issues, electron- ic payments, customer service, amongst others. Parliamentary Secretary for Competitiveness and Economic Growth, Jose Herrera stated, "The national strategy for elec- tronic commerce, that was ambi- tiously launched last year, is ad- dressing the challenges through a number of measures that are spread on a six year period. First and foremost and without any doubt however, every enterprise needs to assess in great detail how this reality affects them. "Therefore, the Malta Com- munications Authority and the GRTU are today jointly launch- ing a package of information tools that will help enterprises undergo the necessary change. The guides are made available free of charge and provide en- terprises with the necessary resources so that they can capi- talise on the opportunities that electronic commerce brings. Through these guides we need to assist those industries where electronic commerce presents real opportunities for develop- ment and expansion."