Business
$1 trillion in unpaid corporate taxes sparks UN tussle on November 1, 2023 at 10:00 am Business News | The Hill
Published
12 months agoon
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The IRS is cracking down on domestic tax evasion by going after wealthy individuals and complex private partnerships, but some of the biggest tax evaders — U.S. multinational corporations — are still exploiting legal gray areas to stash money overseas and keep it out of the government’s reach.
Fed up with a stalled international effort at the Organization for Economic Cooperation and Development (OECD) to rein in the use of tax havens and put a global corporate minimum tax into force, African countries at the United Nations are now leading a charge for greater transparency and fairness in international tax.
$1 trillion a year lost to tax havens
In 2022, profits stowed in tax havens by giant companies totaled $1 trillion, amounting to about 35 percent of foreign profits, according to the EU Tax Observatory’s 2024 global tax evasion report, published this week.
“Foreign profits are the profits made by multinational companies outside of their headquarter country – they include, for instance, the profits booked by Apple outside of the United States, by BMW outside of Germany, and by Toyota outside of Japan. In 2022, according to the best available estimates, profits shifted to tax havens totaled $1 trillion globally,” the report’s researchers found.
“The corporate tax revenue losses caused by this shifting are significant, the equivalent of nearly 10 percent of corporate tax revenues collected globally,” they noted.
The findings back up a 2021 study by the U.K.-based International Centre for Tax and Development (ICTD) that found multinationals moved about $1 trillion to tax havens in 2016.
U.S. companies do more of this profit shifting compared to their international peers, both groups of researchers found, with about half of all U.S. foreign profits being slid into tax havens, as opposed to 30 percent for non-U.S. multinationals.
“[Multinational corporations] headquartered in the United States and Bermuda are the most aggressive at shifting profits towards tax havens, while [those] headquartered in India, China, Mexico and South Africa the least,” ICTD researchers found, calling out the Cayman Islands, Luxembourg, Bermuda, Hong Kong and the Netherlands as among “the most important tax havens.”
New push to track down tax dodges
Earlier this month, Nigeria filed a draft resolution at the General Assembly on behalf of the U.N.’s group of African states to set up an intergovernmental committee on global tax rules that could effectively supplant the rich countries in the OECD as the global coordinating tax authority.
The resolution stresses “the need for all countries to work together to eliminate tax evasion, tax base erosion and profit shifting, and to ensure that all taxpayers, including multinational companies, pay taxes to the governments of countries where economic activity occurs and value is created.”
Experts say the resolution could go to a vote in mid-November, building on the momentum of a similar resolution that passed by surprise consensus in the General Assembly at the end of last year.
That resolution resulted in a report from the secretary-general that recommended that the U.N. offered the most “viable path” for actually getting a global tax agreement signed, sealed and delivered.
“Enhancing the UN role in tax-norm shaping and rule setting, fully taking into account existing multilateral and international arrangements, appears the most viable path for making international tax cooperation fully inclusive and more effective,” the report found.
The EU bemoaned the U.N. push in September, warning of a duplication of efforts and wasted time.
“It could imply reopening negotiations, potentially on issues for which promising outcomes already exist,” the European Council said. “This would be time consuming for all jurisdictions.”
Pillar One sputters in Luxembourg
Moving money around to skimp on taxes takes a significant bite out of the domestic governmental revenues of countries where multinationals operate but pay minimal tax.
That is why experts say it’s no surprise that less well-off countries should be pushing for an alternative to the OECD’s hollowed out framework, known as Pillar One.
“Pillar One, which was supposed to deal with profit shifting, has now become very, very narrow, only addressing a small part of the profits of less than 100 multinationals. Everything else is left on the old rules, which we know don’t work,” Alex Cobham, economist and chief executive of the Tax Justice Network, an international tax advocacy organization, told The Hill.
“The instruments the OECD has put forward can’t come into effect unless the United States ratifies it, and we know that the United States doesn’t have political agreement to be able to ratify,” he said. “Pillar One is pretty much dead in the water.”
Treasury Secretary Janet Yellen said during a meeting of finance ministers in Luxembourg last week that the process of agreeing on Pillar One could drag on into next year.
“Much of the treaty has been agreed to. … There are some matters that are important to the United States and other countries that remain unresolved,” she told reporters, as reported by Politico.
The matters “need to be resolved before the treaty can be signed, so these processes will take into next year,” she said.
No market for ‘intangibles’
The entities actually doing the work of shifting profits internationally include the “big four” accounting firms, which are statistically correlated with the use of tax havens, according to research carried out in part by Cobham.
He and his fellow researchers found a “strong correlation and causal link between the size of an [multinational enterprise’s] tax haven network and their use of the Big 4,” comprising KPMG; Deloitte; Ernst and Young; and Price Waterhouse Coopers.
The growth rate of tax haven subsidiaries is 2.9 percent higher for multinationals that employ one of the big four to file accounts compared to those firms that do not, they found.
KPMG declined to comment on the findings. Ernst and Young, Price Waterhouse Coopers and Deloitte did not respond to request for comment for this story.
The current techniques of international tax avoidance really exploded in the early 1990s, Cobham said, when the big accounting firms started playing with transactions among company subsidiaries, which happen entirely inside a given legal structure and are not subject to market forces such as price discovery.
These techniques got more advanced when applied to “intangible assets,” such as brands and intellectual property, the true value of which is known only to its owner.
“They discovered intangibles. It’s very difficult for anybody to put a price on the Google brand being sold by Alphabet to a Google subsidiary. There is no open market for this. The transaction only happens within the multinational,” he said.
The United States Mission to the United Nations, the Nigerian Mission, and the White House declined to comment.
Business, Energy & Environment, International, News, Technology, african union, corporations, international tax, Nigeria, OECD, pillar one, tax evasion, United Nations, United Nations General Assembly The IRS is cracking down on domestic tax evasion by going after wealthy individuals and complex private partnerships, but some of the biggest tax evaders — U.S. multinational corporations — are still exploiting legal gray areas to stash money overseas and keep it out of the government’s reach. Fed up with a stalled international effort…
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Advice
10 Tips To Creating Quality YouTube Content on a Budget
Published
2 weeks agoon
October 4, 2024Producing engaging YouTube videos doesn’t have to break the bank. With the right strategies and tools, you can create high-quality content that resonates with your audience without overspending.
Define Clear Objectives
Before you start filming, establish your goals. Are you aiming to increase brand awareness, drive traffic to your website, or boost video views? Your objectives will guide your content strategy and help you measure success.
Create Compelling Content
Invest time in developing high-quality video concepts. According to Analytics Partners, video content has twice the lasting impact of non-video content. Focus on creating content that resonates with your audience and aligns with your brand messaging.
Leverage Smartphone Technology
Modern smartphones offer excellent video quality. For example, the iPhone 12 Pro can shoot 4K video at 60 fps, rivaling many dedicated cameras. Pair your smartphone with a basic tripod and external microphone for professional-looking results.
Optimize Lighting
Good lighting is crucial for video quality. Natural light is free and effective. Position yourself near a window or invest in affordable lighting options like ring lights, which typically cost between $20-$100.
Post-Production and Optimization
Use Free Editing Software
Take advantage of free or low-cost editing tools. DaVinci Resolve, for instance, offers professional-grade editing capabilities at no cost for its basic version.
Optimize for SEO
YouTube’s algorithm considers factors like view count, engagement, watch time, and relevance when recommending videos[2]. Use keywords in your titles, descriptions, and tags to improve discoverability. For example, including relevant keywords in your title can increase views by up to 20%.
Engagement Strategies
Prioritize Community Engagement
Respond to comments and interact with your audience. YouTube puts recent comments front-and-center in your analytics dashboard, encouraging timely responses. This engagement can lead to higher watch times and subscriber growth.
Experiment with YouTube Shorts
YouTube Shorts are amassing tens of billions of views daily. Creating Shorts content can increase your channel’s visibility and engagement without requiring significant production resources.
Budget-Friendly Marketing Tactics
Leverage Remarketing
Implement remarketing campaigns to re-engage viewers who have already interacted with your content. This targeted approach can be more cost-effective than broad audience targeting.
A/B Testing
Experiment with different video formats, thumbnails, and titles. YouTube’s own data shows that 90% of top-performing videos have custom thumbnails. A/B testing can help you identify what resonates best with your audience without additional production costs.
Real-Life Example
Consider the case of Peter McKinnon, a photographer and filmmaker who started his YouTube channel in 2010. Using primarily his smartphone and basic editing software, he grew his channel to over 5 million subscribers. His success came from consistently delivering valuable content, engaging with his audience, and gradually improving his production quality as his channel grew.
By implementing these strategies, you can create engaging YouTube content that resonates with your audience without overspending. Remember, the key is to focus on delivering value and consistently improving based on audience feedback and performance metrics.
Author: Bolanle Media Staff
As a film industry professional, you’re likely no stranger to the hard work and dedication required to bring a project to life. However, you may not be aware of the crucial role film festivals play in advancing your career and the industry as a whole. Let’s revisit the importance of film festivals and how they can benefit you and your work:
Film festivals provide a platform for your work to be seen by a wider audience, including critics, distributors, and industry leaders. This exposure can lead to recognition, awards, and critical acclaim, which can boost your reputation and open doors to new opportunities.
From the Film Festival Circuit Founder, Mikal Fair:
“Explore the ‘Film Festival Submitter’s Handbook 2024,’ your ultimate guide to conquering the film festival circuit. Whether you’re a filmmaker or screenwriter, this essential resource provides practical strategies to navigate the competitive landscape of film festivals successfully. From crafting compelling titles, taglines, and synopses to creating impactful director’s and writer’s statements, this handbook equips you with the tools to shine in the festival circuit. Learn to develop effective marketing materials, including posters and trailers, and discover the importance of communication and presenting a professional package. With insights tailored to the evolving role of social media and marketing in the film industry, this handbook is your key to festival triumph. Get your copy now and embark on your journey to festival success!”
Author: Bolanle Media Staff
Business
Laugh, Learn, and Connect: Houston Comedy Film Festival Oct 5th
Published
2 weeks agoon
September 30, 2024Located in: EADO Workspaces
The Houston Comedy Film Festival is set to return on October 5th, 2024, and it promises to be an exciting day filled with laughter, learning, and networking opportunities for comedy enthusiasts and aspiring filmmakers alike. This year, the festival welcomes Roselyn Omaka as the new festival director, bringing her expertise and innovative vision to the event.
Attendees can look forward to engaging sessions led by industry professionals. Joan Montreuil from The Newbie Film Academy will provide invaluable insights into financing films and raising capital, helping aspiring filmmakers navigate the often complex world of film funding. Meanwhile, Deloris from DD’s Showbiz will host an interactive acting workshop designed to enhance participants’ skills and confidence in front of the camera.
Although LemarKus Tinker from Friday Night Lights won’t be attending in person, he will offer an exciting virtual one-on-one guidance session for aspiring directors. This unique opportunity allows participants to connect directly with him from the comfort of their homes, gaining personalized advice and insights that can help shape their directorial vision. Imagine having a chance to ask questions and receive feedback from a seasoned professional in the industry—this virtual interaction is sure to be a highlight!
In addition to these educational opportunities, festival winners will have the chance to receive valuable resources from sponsors to further improve their films and business outcomes. This support could be the stepping stone that many emerging talents need to make their mark in the competitive world of filmmaking.
The festival kicks off at 12 PM sharp, so attendees are encouraged to arrive 10 minutes early to ensure they don’t miss any of the action. It’s important to note that everyone must purchase a ticket to attend this fantastic event. Tickets are available for $50, which grants full access to all festival activities. Attendees can purchase their tickets through different platforms: filmmakers (not screenwriters) are encouraged to buy their tickets on filmfestivalcircuit.com, while guests and screenwriters should secure their tickets via meetup.com/bolanlemedia. Tickets can also be purchased at the door on the day of the event.
The Houston Comedy Film Festival has been a cornerstone of the independent film community since its inception in 2008 by author and retired filmmaker Mikel Fair. Over the years, it has consistently ranked in the FilmFreeway Top 100, cementing its status as a must-attend event for comedy filmmakers and fans.
With Roselyn Omaka’s leadership, the star-studded lineup of industry professionals, and the diverse array of films and activities planned, the 2024 Houston Comedy Film Festival is shaping up to be an unmissable experience. Whether you’re an aspiring filmmaker, a comedy enthusiast, or simply looking for a day filled with laughter and learning, this festival has something for everyone.
Don’t miss out on this fantastic opportunity to immerse yourself in the world of comedy filmmaking. Grab your tickets now and be part of the Houston Comedy Film Festival experience! Join us on October 5th at the Coronation Theatre in Houston for a day of creativity, laughter, and cinematic celebration! Your next big break could be waiting for you!
Author: Bolanle Media Staff
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