Browse content similar to 30/08/2016. Check below for episodes and series from the same categories and more!
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Hello, I'm Ros Atkins, this is Outside Source. | :00:09. | :00:13. | |
An hour of international news live from the BBC newsroom. | :00:14. | :00:18. | |
Apple is at the centre of our lead story. | :00:19. | :00:23. | |
Apple's effective tax rate in 2011 was 0:0.5 -- was 0.005%. | :00:24. | :00:31. | |
The European Union says Apple has to pay Ireland 13 billion | :00:32. | :00:34. | |
We'll explain why. We will also be live at Apple's headquarters in | :00:35. | :00:48. | |
California. Nearly 7000 migrants have been saved off the coast of | :00:49. | :00:55. | |
Libya. It is the busiest day for the Italian coastguard in several years. | :00:56. | :00:57. | |
Also, The Zika virus has spread to Singapore - | :00:58. | :00:59. | |
The government is advising all pregnant women with | :01:00. | :01:02. | |
We will also get the help of the BBC World Service on the state of | :01:03. | :01:17. | |
Uzbekistan's President's ill-health. Not a part of the world we talk | :01:18. | :01:20. | |
about much but the head of the BBC's Central Asia Service will be | :01:21. | :01:24. | |
here to talk about And scientists say the earth has | :01:25. | :01:26. | |
entered a new geological age - now they are trying to work out | :01:27. | :01:30. | |
what defines it. Our science reporter | :01:31. | :01:33. | |
is here with more on that story. Apple's 's European headquarters are | :01:34. | :01:53. | |
in Dublin. The European Union wants the Irish government to claim 13 | :01:54. | :01:57. | |
billion euros in back tax from Apple. | :01:58. | :02:00. | |
The EU argues it paid minimal tax on its profits. | :02:01. | :02:02. | |
For example, two years ago Apple paid 0.005% | :02:03. | :02:06. | |
Normally, companies in Ireland usually pay 12.5%. | :02:07. | :02:15. | |
Both Apple and Ireland are taking issue with the ruling - | :02:16. | :02:21. | |
They will face stiff opposition. Here is a tweet from Martin Schulz, | :02:22. | :02:26. | |
the president of the European Parliament. | :02:27. | :02:35. | |
Next, let me play you a report on the story. | :02:36. | :02:41. | |
It is a vastly wealthy technology company. | :02:42. | :02:47. | |
Their products earn money around the world. | :02:48. | :02:51. | |
Outside America, nearly all of Apple's sales | :02:52. | :02:53. | |
revenues are channelled through one small country. | :02:54. | :02:56. | |
Now the deal made between the Irish government and Apple has been | :02:57. | :02:59. | |
ruled illegal and the tech firm have been told to pay back | :03:00. | :03:02. | |
We've found that the Irish have allowed the huge majority | :03:03. | :03:09. | |
of the profits of Apple sales international to be sent to a head | :03:10. | :03:19. | |
office which only exists on paper and which is not taxed and that | :03:20. | :03:22. | |
means a large majority of the profits are not taxed. | :03:23. | :03:27. | |
It was in 1980 that Steve Jobs opened his first | :03:28. | :03:33. | |
Along the way they signed the tax deal which the | :03:34. | :03:48. | |
We should not have given them a deal like that. | :03:49. | :04:00. | |
It would be marvellous if this country got the tax. | :04:01. | :04:03. | |
I suppose the other thing is they could leave | :04:04. | :04:05. | |
I think it is fair, they are making a lot of profits. | :04:06. | :04:09. | |
The European Commission says at one point Apple were paying | :04:10. | :04:12. | |
That meant on every 1 million euros they took they paid tax of 50 euros. | :04:13. | :04:18. | |
But Apple says the expensive development takes place | :04:19. | :04:21. | |
in America and that is where it should pay tax. | :04:22. | :04:34. | |
Apple says it is the largest taxpayer in both Ireland | :04:35. | :05:05. | |
and the United States and this afternoon the White House expressed | :05:06. | :05:07. | |
concern about Europe's general stance on tax. | :05:08. | :05:33. | |
We are concered about this approach that threatens to undermine progress | :05:34. | :05:36. | |
we have worked on collaboratively with the Europeans. | :05:37. | :05:38. | |
Ireland has worked hard to bring tech jobs to the country so is | :05:39. | :05:41. | |
But the EU are determined to change the rules of the game. | :05:42. | :05:48. | |
Their Deputy political editor of the Irish Daily Mail, asking a question | :05:49. | :05:59. | |
a lot of people are asking. -- the Deputy political editor. The | :06:00. | :06:05. | |
argument is that the economic benefits that come from hosting | :06:06. | :06:10. | |
companies like Apple outweigh the extra tax they could try to recoup. | :06:11. | :06:15. | |
Not one-way traffic in Ireland. Clearly there is a healthy debate | :06:16. | :06:33. | |
over how this should be approached. The ruling today is clearly part of | :06:34. | :06:37. | |
a broader struggle between some of the world's most powerful countries | :06:38. | :06:41. | |
and some of the world's most powerful companies. To understand | :06:42. | :06:47. | |
that dynamic better I turn to Simon Jack who has spent the day in | :06:48. | :06:50. | |
Dublin. I think there is this trade-off | :06:51. | :06:54. | |
about the power of the multinationals. Lots of countries | :06:55. | :06:59. | |
use their tax regime as a come-hither, an attraction to global | :07:00. | :07:02. | |
companies. Point is, with everybody setting their road tax rate it easy | :07:03. | :07:06. | |
for multinational companies, particularly the modern companies | :07:07. | :07:09. | |
which are not manufacturing stuff and selling stuff within | :07:10. | :07:13. | |
jurisdictions, these are intellectual properties, royalties | :07:14. | :07:16. | |
on those intellectual rights. It's difficult to pin down where the | :07:17. | :07:19. | |
money is earned and where the costs are actually incurred. That allows | :07:20. | :07:23. | |
multinational companies like Apple to play governments off against each | :07:24. | :07:29. | |
other. That is why they think they need an approach with all of the | :07:30. | :07:31. | |
governments on board. They think they don't have that in place after | :07:32. | :07:39. | |
this ruling from the EC today. This ruling has come from Brussels. | :07:40. | :07:43. | |
It will be contested in Dublin. Meanwhile, thousands and thousands | :07:44. | :07:49. | |
of kilometres to the west is where Apple is based, in Cupertino. Our | :07:50. | :07:59. | |
correspondent is there. Apple isn't normally a company that takes a | :08:00. | :08:03. | |
backward step, so we will expect a vigorous stance, I suspect. | :08:04. | :08:09. | |
Yes, it's already come. Tim Cook published a letter on the company's | :08:10. | :08:12. | |
website mostly saying how disappointed he was with the ruling. | :08:13. | :08:17. | |
He said it had implications for jobs in Europe and Ireland. He said Apple | :08:18. | :08:23. | |
would continue to invest in Ireland. That situation hasn't changed. But | :08:24. | :08:26. | |
he followed that statement up by saying that is because they are | :08:27. | :08:30. | |
confident they will win their appeal against this decision. If they don't | :08:31. | :08:33. | |
win that appeal and they have to pay this massive tax bill, whether their | :08:34. | :08:39. | |
presence in Ireland where they hire almost 6000 people, whether that | :08:40. | :08:45. | |
will remain. Apple is annoyed, fair to say, it's disappointed, thinks it | :08:46. | :08:49. | |
has been unfairly treated, which is also what the US government thinks | :08:50. | :08:52. | |
of the situation. It is determined to fight with this appeal. In the | :08:53. | :08:57. | |
meantime it has to pay that money pretty quickly. It is going to pay | :08:58. | :09:01. | |
even though they are appealing. They will have to hand the money over | :09:02. | :09:03. | |
relatively quickly after this decision. | :09:04. | :09:07. | |
It is a legal argument but there is also a moral argument that a company | :09:08. | :09:11. | |
as big as Apple ought to be paying significant amounts of tax on its | :09:12. | :09:16. | |
profits. What does Apple say to that moral argument? | :09:17. | :09:22. | |
Apple says it has been working within the tax laws of each country | :09:23. | :09:27. | |
it's been living in. They say they pay their fair share. Despite the | :09:28. | :09:33. | |
tax situation in Ireland it is still the country's biggest taxpayer. One | :09:34. | :09:37. | |
argument that comes from particularly the US government is | :09:38. | :09:44. | |
that all of Apple's hard work of curating its products, the iPhone, | :09:45. | :09:47. | |
iPod, so one, that happens here at HQ. It anywhere should be getting | :09:48. | :09:51. | |
more tax money the US argues it should be here in the United States. | :09:52. | :09:59. | |
-- and so on. If Apple does eventually pay this bill, that | :10:00. | :10:03. | |
amount, that 13 billion euros, almost $15 billion, that will be | :10:04. | :10:08. | |
offset against US tax. That is money essentially leaving the US economy | :10:09. | :10:11. | |
and arriving into the European economy. Obviously the US government | :10:12. | :10:15. | |
is particularly concerned about that. | :10:16. | :10:18. | |
This time yesterday we saw that invite go out about an Apple event | :10:19. | :10:22. | |
on the 7th of September. You a good place to find out what they are | :10:23. | :10:26. | |
going to tell us. -- you are in a good place. | :10:27. | :10:30. | |
They will be hoping to business as usual next week when they launched | :10:31. | :10:34. | |
the new iPhone. But the iPhone has not been doing as well as it has in | :10:35. | :10:38. | |
previous years. Apple has been fighting several battles on several | :10:39. | :10:40. | |
fronts at the moment. Thanks very much. | :10:41. | :10:45. | |
Let's turn from that story which is playing out in Brussels, Dublin and | :10:46. | :10:54. | |
California to a very urgent story in the Mediterranean. The Italian Coast | :10:55. | :10:57. | |
Guard says it has had one of its busiest days in years. There have | :10:58. | :11:03. | |
been 14 coordinated mission saw off the coast of Libya in North Africa. | :11:04. | :11:07. | |
The latest figures the authorities are providing is that almost 7000 | :11:08. | :11:13. | |
people have been rescued. All of them, we understand, in one area, 20 | :11:14. | :11:19. | |
kilometres off the coast of the Bristol city. They are hoping to | :11:20. | :11:29. | |
reach an Italian island, Lampaduna, where we have reported on the story | :11:30. | :11:35. | |
many times before. Already this year 112,000 migrants have arrived there. | :11:36. | :11:38. | |
Many of them across the Mediterranean from Libya. The report | :11:39. | :11:42. | |
we have on this story comes from our diplomatic correspondent James | :11:43. | :11:43. | |
Landale. When you're tired and desperate, | :11:44. | :11:56. | |
and so close to safety, A final leap of hope | :11:57. | :11:59. | |
after a journey that has Just some of the almost 7000 | :12:00. | :12:02. | |
who were rescued on Monday. It is a crisis were the numbers | :12:03. | :12:07. | |
are already extraordinary. Most were picked up 13 miles off | :12:08. | :12:17. | |
the western Libyan coast. Packed into fishing boats and 44 | :12:18. | :12:24. | |
inflatable dinghies, often with just enough fuel | :12:25. | :12:26. | |
to reach international waters. Phoned around 5am, they had been | :12:27. | :12:35. | |
for 14 hours, and in that time we rescued over 5000 people, | :12:36. | :12:39. | |
according to the information we have Rescuers said most of the migrants | :12:40. | :12:41. | |
appeared to be from sub Saharan Africa, from Eritrea, | :12:42. | :12:50. | |
Somalia, and Nigeria, encouraged to leave the beaches | :12:51. | :12:52. | |
and take to the sea. They were rescued by ships | :12:53. | :12:59. | |
from the Italian coastguard, aid agencies and even | :13:00. | :13:02. | |
the British Navy. The survey vessel HMS Enterprise | :13:03. | :13:06. | |
picked up more than 700 of the migrants and will land | :13:07. | :13:09. | |
them in Italy tomorrow. The International organisation | :13:10. | :13:15. | |
for migration says so far this year 111,000 migrants have | :13:16. | :13:17. | |
been rescued in the central At the same time, some | :13:18. | :13:19. | |
2700 have died. Those are pretty similar numbers | :13:20. | :13:29. | |
to the same period last year Even though migration across | :13:30. | :13:31. | |
the eastern Mediterranean here has dropped substantially since the deal | :13:32. | :13:39. | |
with Turkey, the numbers crossing from Libya do not appear | :13:40. | :13:41. | |
to have risen as a result. The migrants keep coming | :13:42. | :13:46. | |
because there is no safety or work And there's always the chance | :13:47. | :13:53. | |
of rescue in the sea. It's a very dangerous | :13:54. | :13:59. | |
journey and people don't This evening, the first of those | :14:00. | :14:01. | |
rescued in recent days If others are prepared to go to sea, | :14:02. | :14:14. | |
even with newborn twins, The Italian coastguard | :14:15. | :14:22. | |
expect more to come whilst Hello, I'm Ros Atkins, | :14:23. | :14:26. | |
this is Outside Source. An hour of international | :14:27. | :14:36. | |
news live Authorities in Singapore are saying | :14:37. | :14:47. | |
all pregnant women with symptoms of the Zika virus should get themselves | :14:48. | :14:56. | |
tested. We also had another confirmation -- also had | :14:57. | :14:59. | |
confirmation of another 26 cases. The cases have been found in the | :15:00. | :15:08. | |
same area which is Aljunied Crescent. This means a wider part of | :15:09. | :15:15. | |
Singapore is affected. Some countries have responded directly, | :15:16. | :15:18. | |
telling pregnant women to avoid going to Singapore. Here are the | :15:19. | :15:22. | |
thoughts of some people who live there. Afraid, because I hurt about | :15:23. | :15:38. | |
how difficult it is to be pregnant with the Zika virus. I'm afraid | :15:39. | :15:44. | |
about it going on and how it might affect my relatives. Steps should be | :15:45. | :15:48. | |
taken to find out how or why the sudden spread has occurred. My | :15:49. | :15:59. | |
husband has suggested to me that I should go for a checkup. If it is | :16:00. | :16:04. | |
positive then it is quite bad. If it is not quite safe. So I don't worry | :16:05. | :16:08. | |
that much. But I am doing the checkup. We should emphasise that | :16:09. | :16:16. | |
the Zika virus has been far more prevalent in South and Central | :16:17. | :16:19. | |
America. If you would like more information on how it has manifested | :16:20. | :16:26. | |
itself there, go to the BBC News website. In a moment, a big | :16:27. | :16:30. | |
political story in France. The French economy Minister Emanuel | :16:31. | :16:39. | |
Macron has resigned. And there is speculation he may be looking to | :16:40. | :16:40. | |
become the next French president. Researchers say almost a third of | :16:41. | :16:49. | |
patients in England and Wales are being given the wrong initial | :16:50. | :16:53. | |
diagnosis after a heart attack. The British Heart Foundation says women | :16:54. | :16:57. | |
are more likely than men to be misdiagnosed and it is beginning a | :16:58. | :17:01. | |
campaign to make people more aware of the symptoms. Doctor Kevin Fox, | :17:02. | :17:07. | |
from British cardiovascular Society, speaks. | :17:08. | :17:09. | |
Although their tremendous pressures on the NHS and all health care staff | :17:10. | :17:13. | |
are working hard, in this particular case it is about money. Prevention, | :17:14. | :17:19. | |
which is the first step, if women are not having heart attacks that's | :17:20. | :17:22. | |
fantastic, that isn't necessarily expensive. -- it is not about money. | :17:23. | :17:27. | |
Awareness and alertness, that isn't expensive. Diagnosis and treatment, | :17:28. | :17:32. | |
yes, expensive, but it is cheaper to get the right diagnosis to the right | :17:33. | :17:38. | |
patient at the right time. This is not entirely a question of money as | :17:39. | :17:43. | |
is being reported in the media, it is about optimisation of care. | :17:44. | :17:52. | |
Hello, I'm Ros Atkins, this is Outside Source. | :17:53. | :17:54. | |
An hour of international news live | :17:55. | :17:55. | |
The European Union has told Apple to pay back 13 billion euros in taxes | :17:56. | :18:04. | |
to Ireland. That is where the company has its European | :18:05. | :18:07. | |
headquarters. The EU is saying Ireland offered on fair tax breaks | :18:08. | :18:11. | |
to Apple. Ireland and Apple will appeal the rule. Some of the main | :18:12. | :18:19. | |
stories: From BBC Arabic, it is reporting the death of one of the | :18:20. | :18:22. | |
Islamic State group's most senior leaders. A website affiliated to the | :18:23. | :18:30. | |
group said its spokesman was killed while surveying operations in | :18:31. | :18:31. | |
Aleppo. Dilma Rousseff has resumed her | :18:32. | :18:39. | |
defence at her impeachment On Monday she spent fourteen hours | :18:40. | :18:41. | |
rejecting allegations that she manipulated government | :18:42. | :18:44. | |
Budget accounts. Senators have the option | :18:45. | :18:45. | |
of reinstating or removing her as President - | :18:46. | :18:47. | |
the latter if far more likely. We have covered drone racing before, | :18:48. | :18:50. | |
now this. It's a self-driving car | :18:51. | :19:01. | |
being trialled on a race track. The company behind it want to launch | :19:02. | :19:03. | |
a competition featuring self Let's go back to our top story. The | :19:04. | :19:19. | |
decision by the European Union to instruct Apple to pay 13 billion | :19:20. | :19:23. | |
euros in back tax to the Irish government. We are joined by dashed | :19:24. | :19:32. | |
earlier, we were joined by a former Nobel Prize winner. -- earlier, we | :19:33. | :19:39. | |
were joined. The first corporate responsibility is paying your fair | :19:40. | :19:43. | |
share of taxes. Not trying to avoid taxes. When you operate in a | :19:44. | :19:50. | |
country, where you produce and sell in a country, you have an obligation | :19:51. | :19:53. | |
to pay taxes. There has been a culture developed where you are a | :19:54. | :20:00. | |
hero amongst CEOs if you can avoid paying taxes. We can now talk about | :20:01. | :20:07. | |
some of the issues raised with Michelle. We focused on the European | :20:08. | :20:11. | |
decision with regard Apple, what is the relationship between the | :20:12. | :20:16. | |
American regulators and Apple on this issue? In this particular | :20:17. | :20:19. | |
instance we are seeing the US Treasury come out in support of | :20:20. | :20:24. | |
Apple. Certainly suggesting that perhaps the EU has overstepped in | :20:25. | :20:28. | |
this particular instance ahead of this decision about a week ago the | :20:29. | :20:33. | |
US Treasury issued a white paper talking about this novel approach | :20:34. | :20:37. | |
that the EU had taken towards some sort of tax investigations, and | :20:38. | :20:40. | |
saying they found this deeply troubling. Today they said they | :20:41. | :20:44. | |
found the ruling disappointing. They were concerned that perhaps US | :20:45. | :20:50. | |
companies were being targeted. I was talking with Dave Lee, who is at the | :20:51. | :20:54. | |
Apple headquarters, we were talking about the legal and moral argument. | :20:55. | :20:57. | |
Clearly the EU is making a moral argument. I get the impression Apple | :20:58. | :21:06. | |
says, look, there are different ways you can contribute to society. If | :21:07. | :21:10. | |
you look at the letter Tim Cook wrote, his press release response, | :21:11. | :21:15. | |
one of the arguments, or The KC made was, hang on, we entered into an | :21:16. | :21:19. | |
agreement with Ireland, we complied with the law that was set out to us. | :21:20. | :21:25. | |
-- all the case made was. What is interesting is how the US government | :21:26. | :21:29. | |
and Treasury has responded. In this case they feel the EU has | :21:30. | :21:33. | |
overstepped the mark a bit. But the irony is, if you look at the US | :21:34. | :21:37. | |
Treasury it has had its own problems with some multinationals who have | :21:38. | :21:44. | |
relocated overseas to reduce their tax bill. We see the government is | :21:45. | :21:47. | |
aligning with American corporate interest. But that isn't necessarily | :21:48. | :21:50. | |
always the case when it comes to collecting tax dollars. Presumably | :21:51. | :21:55. | |
the long-term prospects of tax collecting will be in part decided | :21:56. | :21:59. | |
by who comes into the White House next. We could see different | :22:00. | :22:04. | |
approaches to corporate tax and the treatment of corporations by | :22:05. | :22:07. | |
government. Well, we've heard a lot on the campaign trail, certainly | :22:08. | :22:12. | |
from Donald Trump. The presidential hopeful has talked about reducing | :22:13. | :22:15. | |
substantially the corporate tax rate, which currently stands at | :22:16. | :22:20. | |
around 35%, reducing it to sort of essentially to the kind of 15% | :22:21. | :22:27. | |
range. Whether or not that is achievable, it is something that | :22:28. | :22:30. | |
Congress has wrestled with for a long time and no doubt we will hear | :22:31. | :22:34. | |
more about these debates. The other area which could also be impacted by | :22:35. | :22:40. | |
this going forward, how governments around the globe work together. We | :22:41. | :22:44. | |
have seen various efforts, certainly among G20 countries, trying to | :22:45. | :22:49. | |
tackle this idea of taxes, making sure that companies that do not play | :22:50. | :22:55. | |
governments against each other -- making sure that companies do not | :22:56. | :22:58. | |
play governments against each other. But this seems to be an issue. It | :22:59. | :23:03. | |
will continue because we have other companies including Amazon and | :23:04. | :23:06. | |
McDonald's still being investigated for deals in Luxembourg. Thanks very | :23:07. | :23:15. | |
much. Very useful. To France, there is a big political story which could | :23:16. | :23:18. | |
have economic consequences. The economy Minister, Macron, has | :23:19. | :23:24. | |
resigned from the government and there is heavy speculation he will | :23:25. | :23:27. | |
look to stand for president next year. Let's get the thoughts of the | :23:28. | :23:31. | |
BBC's Hugh Schofield. The economy Minister, Macron, is | :23:32. | :23:47. | |
resigning to Francois Hollande. It is a big story around the world. He | :23:48. | :23:54. | |
has become perhaps one of the most recognisable figures in the French | :23:55. | :23:57. | |
government. He's young, he's freshfaced, he looks like the boy at | :23:58. | :24:02. | |
the top of the class, and he's a social and economic liberal. That's | :24:03. | :24:08. | |
key. Since he came to his ministerial post, he has pioneered a | :24:09. | :24:11. | |
number of measures to open up the French economy. He has been | :24:12. | :24:15. | |
partially successful. Increasingly he's run into opposition from parts | :24:16. | :24:19. | |
of the government. Francois Hollande one of them. There has been growing | :24:20. | :24:24. | |
tension. Now he has decided to hand in his resignation. The key point is | :24:25. | :24:28. | |
that we are eight months from a presidential election. Does this | :24:29. | :24:35. | |
mark Macron's bid to enter the presidential race? Well, that's the | :24:36. | :24:40. | |
big question. Mark Zuckerberg has been in Lagos meeting young | :24:41. | :24:43. | |
entrepreneurs. He posted this picture online earlier saying he had | :24:44. | :24:48. | |
come to Lagos to learn about the start-up ecosystem in Nigeria. Some | :24:49. | :24:52. | |
of the people who have been helping him to do that have been speaking to | :24:53. | :25:01. | |
the BBC. I just met Mark Zuckerberg. I'm so happy. It was cool, very | :25:02. | :25:05. | |
interesting, he played with some of my apps. It is sort of like a stamp | :25:06. | :25:13. | |
of approval. For someone who, I mean, made his way in tech, and | :25:14. | :25:20. | |
understand how the industry works. There is a negative perception of | :25:21. | :25:24. | |
what we are doing here, but to see him using a product, that is a huge | :25:25. | :25:32. | |
step. A big plus. He's probably still going to meet all of these | :25:33. | :25:37. | |
important people, but coming here shows how in the young people. That | :25:38. | :25:43. | |
is the big part of it. The fact he understood what we were to become | :25:44. | :25:46. | |
invalidated everything we had been doing and had planned. Coming here, | :25:47. | :25:52. | |
and wanting to see the technology, that is a good one for me, you know. | :25:53. | :25:59. | |
It then shows, OK, you need to recognise talent in Africa. I will | :26:00. | :26:04. | |
be back with you in a couple of minutes' | :26:05. | :26:05. |