Facebook to pay tax in countries it operates in instead of funnelling it through Ireland

Facebook is changing its tax structure so it will pay taxes locally instead of putting its revenue through international headquarters in Dublin, Ireland. 

Bloomberg reports it will develop a "local selling structure" in places it has offices, resulting in paying taxes in that country through local advertisers. 

Chief Financial Officer Dave Wehner said it means "that advertising revenue supported by our local teams will no longer be recorded by our international headquarters in Dublin, but will instead be recorded by our local company in that country". 

"We believe that moving to a local selling structure will provide more transparency to governments and policy makers around the world who have called for greater visibility over the revenue associated with locally-supported sales in their countries," he said in a statement. 

Currently, the European commission is expected in March to release proposals on increasing tax to multinational digital companies.

Mr Wehner said he aimed to have the change completed by the first half of 2019. 

Facebook is a $300 billion company used by two million Kiwis every day.

It made more than $1 million profit in New Zealand in 2015 and paid just $43,000 in tax.

Source: US ABC



Most read: Jacinda Ardern’s GDP gaffe is understandable & of much consequence, says economist

Shortly after Jacinda Ardern misspoke about economic data during a radio interview yesterday, the Kiwi dollar briefly rose.

It resulted in widespread media coverage and gave Opposition leader Simon Bridges an opening to throw another jab in their perpetual political joust, calling her "distracted".

But even if the Prime Minister's statement did cause the dollar to quiver, does it matter in the scheme of things?

"Not really," said Christina Leung, principal economist for the NZ Institute of Economic Research, as she discussed the issue on TVNZ1's Breakfast today.

"The miscommunication is understandable," she said of the interview, in which Newstalk ZB host Mike Hosking asked a question about tomorrow's release of gross-domestic product (GDP) figures and Ms Ardern replied, "I am very pleased with the way we are tracking".

The Prime Minister later clarified that she wasn't talking about GDP figures, which she isn't given advanced access to, but instead to the Government's balance sheet.

The Opposition says it shows the Prime Minister is distracted. Source: 1 NEWS

"Financial markets do tend to focus on the glamour stats...like GDP," Ms Leung said today. "And then the Prime Minister would be more focused, of course, about what implications of growth are on tax revenue and what it means for the Government's balance sheet."

Ms Leung said she didn't find the misstatement concerning. The GDP figures released tomorrow will look back to the June quarter, so they won't be affected in any way by a statement after the fact, she said.

And she's also not convinced the PM's statement caused the brief rise in the Kiwi dollar's value, from 65.78 to 65.84 US cents.

"It's always hard to link up what's driving the New Zealand dollar," she said. "A lot of financial markets are driven by a lot of different factors.

The Kiwi dollar rose slightly this morning following a radio interview in which some thought the PM had a sneak peek of Thursday’s figures. Source: 1 NEWS

"Ultimately, what effects the longer-term influence on the New Zealand dollar would be the interest rate differentials between New Zealand and the other major economies - particularly what's going on in the US."

With retail activity and construction "looking quite strong" in New Zealand, Ms Leung said she expects to see "fairly solid growth for the June quarter" - of up to one per cent - when the GDP stats are released tomorrow morning.

Christina Leung, principal economist for the NZ Institute of Economic Research, also tells Breakfast the outlook for tomorrow’s GDP announcement is good. Source: Breakfast


No vacancy: Curious mountain lion wanders around Colorado motel

A mountain lion has been caught on a surveillance camera dashing to the doorstep of a Colorado motel office, venturing toward the open doorway and then wandering away.

Colorado Parks and Wildlife spokesman Jason Clay says nobody was hurt in the Sept. 9 encounter.

The Boulder Daily Camera reported Tuesday the lion approached the Foot of the Mountain Motel on Boulder's west side. Just after entering the camera's view, the lion pauses, as if startled.

Clay says that was when the lion spotted motel guests with with a dog on a leash.

Clay says the guests and their dog returned to their room and there was no trouble.

The lion thought better of kipping down for the night at the Foot of the Mountain Motel. Source: Associated Press

In August, a mountain lion entered a Boulder home and killed a house cat, and another was tranquilized and relocated from under a porch.


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McDonald's workers across US protest sexual harassment

McDonald's workers are staging protests in several cities in what organisers called the first multistate strike seeking to combat sexual harassment in the workplace.

In Chicago, several dozen protesters rallied today in front of McDonald's headquarters while a plane flew overhead with a banner reading, "McDonald's: Stop Sexual Harassment."

In New Orleans, current and former employees chanted, "Hey, McDonalds, you can't hide — we can see your nasty side."

Those are among 10 targeted cities. Other protests were held in St. Louis; Kansas City, Missouri; and Durham, North Carolina.

Protesters are demanding that McDonalds require anti-harassment training for managers and employees. The fast food chain defends its policies.

Another demand is forming a national committee to address sexual harassment, made up of workers, management and leaders of national women's groups.

Current and former McDonald's employees wear tape with "#MeToo" over their mouths as they up to one of their restaurants for a protest in New Orleans. Source: Associated Press


Day care owner accused of tying kids to car seats for up to seven hours, fastening shoe laces around their necks

The owner of an in-home day care accused of keeping infants and toddlers tied to their car seats for hours has been jailed in the United States on child endangerment charges.

An affidavit says Rebecca Anderson also yanked a six-month-old child by the bib around his neck, tied laces around the children's necks to limit their movement and gave them the painkiller acetaminophen to quiet them.

The 60-year-old is accused of having kept the small children tied up in car seats for at least seven hours a day at Becky's Home Child Care, her day care near Dallas, Texas.

When police executed a search warrant on her home, they found three children in a dark bedroom closet strapped to car seats, according to CBS 11 News in Dallas. Some of the children had to have shoelaces cut off their necks, police also said.

"It just kind of concerned me the way the kids sounded when the parents dropped them off," neighbour Susan Geldmeier told the news station, explaining that she would sometimes hear children wail when dropped off at the facility.

"It alarmed me to where I was like, 'Why are they sounding like that?'"

Anderson was booked Monday into the Dallas County jail on nine counts of child endangerment with bonds totalling NZ $68,000.

Rebecca Anderson Source: Dallas County Jail