06/11/2017 Beyond 100 Days


06/11/2017

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You're watching Beyond 100 Days -

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more revelations from

the Paradise Papers on how

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the rich and famous avoid taxes.

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Actors, multinationals sports stars,

all manner of people mentioned

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in the leaked papers, which show how

they invest their money offshore.

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British Formula One driver

Lewis Hamilton saved millions in VAT

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when he bought this private jet

using the Isle of Man tax haven.

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In an interview with the BBC,

President Trump's Commerce Secretary

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denies misleading Congress

after the leaked documents

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exposed his involvement in a company

with links to the Kremlin.

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Did a row with his mother in law

lead a shooter in Texas to kill 26

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people in a small town church.

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The youngest was just a baby.

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Also on the programme...

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Donald Trump tells Japan

the best way to protect itself

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from a nuclear-armed North Korea

is to buy billions of dollars

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of American military equipment.

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In Germany the latest round

of climate talks gets under way -

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chaired by Fiji, the pacific island

that is already paying the price

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of rising global temperatures.

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Get in touch with us

using the hashtag...

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Hello and welcome -

I'm Katty Kay in Washington

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and Christian Fraser is in London.

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They are the revelations

from millions of leaked documents -

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dubbed the Paradise Papers -

which show how the rich and powerful

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try to avoid paying taxes.

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Whether it's a multi-national

corporation

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or household names around the world,

they are all accused of using

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tax havens to dodge paying

their fair share to tax authorities.

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The papers were obtained

by the German newspaper

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Sud-deutsche Zeitung and shared

with the International Consortium

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of Investigative Journalists.

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Richard Bilton, from the BBC's

Panorama programme, has been

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poring through the documents -

here's his special report.

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When you hear tax haven

you might think palm trees.

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They're and not all like that.

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We have arrived in a little

place between Belfast and

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Liverpool, this is the Isle of Man,

it is a British Crown dependency

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and it's an important tax haven.

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We have found that

the island offers

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a special service that

the rich and famous love.

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Take Formula 1 world

champion Lewis Hamilton.

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In 2013 he made a dream

purchase, a £16 million jet.

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The Isle of Man gave him back

3.3 million as a VAT refund.

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Lewis Hamilton had

to fly his jet here to

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the Isle of Man just once.

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He came here in 2012

with his then girlfriend,

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pop star Nicole Scherzinger.

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Documents show that Customs

and Excise here were happy to come

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in early at 6am in the morning

to sign off on the deal.

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There are nearly

1000 jets registered here.

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We believe they come

here because the

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Isle of Man don't properly apply

the European Union and UK rules.

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Now, those rules

are very complicated.

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But if you use your plane for fun

you can't get VAT refunds.

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I can't believe I have

my own plane still

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after all these years.

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Look at this post,

Lewis Hamilton is open about

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using it for fun.

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He shouldn't have got a full refund.

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If they are using it

for private purposes, the fact

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that all this money is being

refunded is quite shocking.

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You should not be

getting VAT back

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if it is private usage.

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Lewis Hamilton's lawyers

told us he had a set of

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professionals in place who run most

aspects of his business operations.

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They said Isle of Man customs gave

informed approval to the scheme.

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In total

the Isle of Man has handed out

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more than £790 million in VAT

refunds to jet leasing companies.

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Isle of Man customs has admitted it

has given refunds for personal use

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of jets as long as it's

mainly used for business.

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That shouldn't happen.

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As a result of our investigation

they have called in the British

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government to review its procedures.

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The Paradise Papers show there

are other secrets on this island.

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We have found evidence that shows

just how far the Isle of Man

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government has been prepared to go

to help tax dodgers.

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The European savings

directive was an attempt to

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stop tax evasion across Europe.

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We have found evidence

that the Isle of

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Man changed one of their laws

to help people dodge the new tax.

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Now, you might think

getting approval for

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something that could help tax

evaders would prove difficult

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but not on the Isle of Man.

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We have letters from lawyers

to the island's regulator.

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If you believe it would be helpful

for us to provide you

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with ideas as to how

to amend the regulations,

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please let Simon and myself no.

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In Switzerland I tracked down

the man who drew up that scheme

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to help tax dodgers.

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I want to show you something.

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The one that needed the

Isle of Man to change the law.

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It's actually changing the laws,

the Isle of Man changing their own

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laws so this scheme

to help tax evaders

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can work, isn't it?

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I would agree with you, yes.

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That is amazing to me,

that's amazing.

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The Isle of Man's

top politician, the chief

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minister, promised to investigate

allegations and apologised if the

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law was changed for tax dodgers.

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But what about

the regulator himself?

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Did you change the law

to help tax dodgers?

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He is retired now,

I tracked him down.

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No, I think you should help us

with this, it was the

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European Savings Directive

and you changed the law.

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I have nothing to say.

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What would you say to our

viewers who pay their tax?

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You should contact

the Financial Services Authority.

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But the Paradise Papers

have more than faceless

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financial deals.

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Hello, love, do you

want a cup of tea?

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We think three actors

in Mrs Brown's Boys are

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involved in a tax dodge.

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I could do with some

money to get as a place.

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Patrick Hoolahan who plays

Mrs Brown's son Dermot.

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Could have stayed

in bed a bit longer?

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Fiona Delaney,

the real-life daughter of

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Mrs Brown star Brendan O'Carroll.

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Good morning, Trevor.

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And her husband, Martin Delaney.

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The dodge involves

their wages, or fees,

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going from the production company

to a UK company, then offshore to

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accompany each has in Mauritius.

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Those companies then loaned money

to the actors'

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personal accounts tax-free.

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Take Fiona Delaney.

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In 16 months

her Mauritian company

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lent her over £360,000.

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None of the actors

answered our questions.

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I caught up with Fiona Delaney.

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It is Richard Bilton

from Panorama, can I grab a

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quick word?

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She arrived for filming in Glasgow.

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You get paid

in Mauritius, don't you?

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What is that all about?

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And do you pay the loans back?

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I don't think you pay them back,

are you a tax dodger?

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I don't know who you are.

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I am from Panorama,

you are from Mrs Brown's

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Boys and you are a tax dodger,

that's not very funny, is it?

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More names from

the Paradise Papers, more

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revelations still to come.

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Richard Bilton, BBC News.

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Apple is the world's

most valuable company -

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it has a stash of profits worth

hundreds of billions of pounds.

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Yet the leaked documents show

how hard the tech giant works

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to keep its tax bill

as low as possible.

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After Ireland banned an arrangement

which meant it paid very little tax

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Apple has moved billions to Jersey.

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What it's done is legal.

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Our Business Editor

Simon Jack reports.

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A rapturous reception

for the latest iPhone.

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It's the most popular and profitable

consumer product of all time.

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It's generated hundreds of billions

in profits for Apple

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since it was introduced

ten years ago.

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What these papers show is just how

determined Apple has been to keep

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the tax on those profits

as low as possible.

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And how keen some governments,

lawyers, and advisers

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have been to help them do it.

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For many years, Apple sent profits

made outside the Americas to Ireland

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where an elaborate corporate

structure meant it paid nearly no

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tax on the billions it was making.

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Taxes that would have been due

to the United States

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where politicians started

applying pressure to

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a defiant Apple CEO Tim Cook.

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We pay all the taxes we owe,

every single dollar.

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We not only comply with

the laws but we comply

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with the spirit of the laws.

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We don't depend on tax gimmicks.

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So, no more fiendishly complicated

tax arrangements, right?

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Wrong.

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Documents obtained from

the law firm Appleby

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show that

when Ireland shut that scheme

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down, the company went

shopping for a new way

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to keep their tax bills low.

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A questionnaire was sent

to Appleby's offices

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in seven tax havens,

all British, including questions

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that made their intention clear.

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Can you confirm that

an Irish company, meaning

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an Apple subsidiary,

can conduct management activities

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without being subject to taxation

in your jurisdiction?

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After this offshore beauty parade,

Apple plumped for Jersey

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and company accounts published

since show there's been no

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discernible increase in the rate

of tax paid worldwide.

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Now, let's be clear,

Apple has done nothing illegal

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but hundreds of billions of dollars

remain tangled in a web

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of low tax jurisdictions,

seemingly beyond the reach

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of any government.

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The tax equivalent of outer space.

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And, as these documents show,

this is a system that has

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continually eluded international

attempts to reform it.

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The boss of the international

organisation trying to fix this

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problem admits

it's a work in progress.

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Changing the rules that make it

legal means that very of these

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companies today pay very little

or no tax at all.

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This is what it's about.

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This is what is happening and this

is what we're working on.

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Apple actually pays a lot of tax,

more than any other company

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in the world, but not as much

as many think it should.

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It's also not alone.

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Other multinationals use similar

structures and US companies alone

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are estimated to have over

$2 trillion stashed offshore.

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The Paradise Papers show the lengths

to which they and their

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advisers are prepared to go

to keep their tax bills low.

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Simon Jack, BBC News.

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And you saw Angel Gurria,

the secretary-general

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of the Organisation

for Economic Development,

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Simon's report - we'll get

more of his thoughts

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on the Paradise Papers,

in just over 20 minutes' time.

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The Paradise Papers also

include revelations that

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President Trump's commerce

secretary, Wilbur Ross,

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has business links to Russian

figures who are currently

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under US sanctions.

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Mr Ross said there was nothing

improper about his investments.

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He also said he was optimistic

about a post-Brexit free trade deal

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between the UK and the US.

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He was speaking to our

Economics Editor Kamal Ahmed.

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He has friends in high places.

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The highest in fact.

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The President of the United States

considers Wilbur Ross

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one of his closest allies.

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Today in London and defending

allegations that his links to Russia

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were uncomfortably close.

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I asked him whether a connection

to the Russian oil

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firm Sibur created a conflict.

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Our government has not thus far made

the determination to sanction them

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so there is nothing wrong.

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The fact that it happens

to be called

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a Russian company does not mean

that there is any evil in it.

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Where there is evil

is the mis-statement that I did not

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disclose those holdings.

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Mr Ross said he had fully notified

the office of government ethics

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about his business interests.

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I asked him whether it was time for

all major companies to pay more tax.

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The right way to deal with it

I think is to provide incentives

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that make the US the attractive

place to domicile.

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The President's idea is buy America,

hire America, be American.

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And therefore pay

more tax in America.

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Yes.

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If we could move on to Europe,

what type of relationship

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would be most advantageous to the UK

in terms of its relationship

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to the US post-Brexit?

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Well, the UK right now inadvertently

has much higher taxes on imports

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from the US than the US

has on imports from the UK.

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That's because the UK

is bound by the EU system.

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So we would like to see

those barriers come down,

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come closer to free trade.

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The EU talks a good job of free

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trade but in fact it practises

extreme protectionism.

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Mr Ross was in London selling

a positive vision of a post-Brexit

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Britain with a free-trade

deal with the US.

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He said he was optimistic that such

a deal would be signed.

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Kamal Ahmed, BBC News.

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Richard Bloom et al has been

tweeting about this relationship.

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This is what he said...

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Those tweets were posted before

Wilbur Ross spoke to the BBC. Maybe

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it is all secondary to the politics

of having these business links with

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Russia.

And we haven't heard from

Senator Bluementhal since the

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response from Wilbur Ross. This

story hasn't got a huge amount of

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attention in the United States today

apart from this angle of the Russia

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ties. For an administration already

under several investigations for

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links to Moscow, the fact that this

is not Brazil, China, or India which

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is named as the country here, that

makes it more tricky for the

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administration. It is yet another

member of the Trump administration

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who seems to have ties to Russia

will stop Wilbur Ross points out

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there is nothing illegal with these

ties but the perception is tricky

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for an administration already under

investigation.

Plenty more to come

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from the Paradise Papers.

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You can find much more analysis

of the Paradise Papers online -

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and you can watch Panorama:

Britain's Offshore Secrets Exposed

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tonight at nine o'clock,

on the BBC News Channel and BBC One.

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Viewers outside of the UK will be

able to watch it this coming

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weekend on BBC World News,

at the times listed on your

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screen - they are GMT.

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What does it say about American

society when the senseless

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murder of 26 people,

in a church,

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becomes just another statistic?

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We have become almost inured

to the brutality of mass shootings.

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The definition of a mass shooting

is four or more people killed -

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and Sunday's one in Texas brings

this year's total to 307 - so far.

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It may have been something

as mundane as a row with his in-laws

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that led a former air force man

to open fire on the church.

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His mother in law worshipped

within the Baptist community

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in Sutherland Spring and he'd

already sent her threatening texts.

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She wasn't at the service yesterday.

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From Texas James Cook reports.

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Yet again it is a time

for mourning in America.

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The masked gunmen was inside

the church for a long time,

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say police.

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Moving around freely,

firing with an assault rifle.

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Once he started firing

rounds on the outside,

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what could people inside do?

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Are there too many guns in the US?

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Guns don't kill people,

it is the people

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that kill people.

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Among the dead was

an 18-month-old child.

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Annabel the 14-year-old

daughter of the church

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pastor also died and one family

alone lost at least five people

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leaving their neighbour in shock.

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I have heard two

different stories, I

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heard that dad was killed and that

the mom and daughters were killed.

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Nobody has come to the house

yet since last night.

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Police say the killer

Devin Kelley had set

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threatening texts

to his mother-in-law.

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He had been thrown out

of the US Air Force for

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assaulting his wife and child.

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Very deranged individual,

a lot of problems.

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We have a lot of mental health

problems in our country,

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as do other countries.

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But this is not a guns situation.

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The killer was tackled

by a citizen with a gun

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who jumped in this man's

truck to give chase.

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I did what I thought I needed to do

which was they said there was

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a shooting, I pursued and I just did

what I thought was the right thing.

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Nowhere it seems are

Americans safe from bullets.

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The answer?

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Here they say it is

more prayer and more weapons.

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Guns and God.

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Well among those who can provide

insight into the many questions now

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being asked is Ron Hosko.

0:18:320:18:33

He's the former assistant

director of the FBI -

0:18:330:18:35

and is now President of the law

enforcement legal defense fund.

0:18:350:18:40

Thank you very much for coming in to

join me. If you would like to see

0:18:400:18:45

one thing changing America that

might stop others from having quite

0:18:450:18:48

so many of these mass killings, 307

already this year, what would it be?

0:18:480:18:54

A couple of things. One, most

certainly there is a connection

0:18:540:19:01

between these active shooters and

mental illness, serious depression.

0:19:010:19:06

And I don't think there is adequate

connectivity between the FBI, their

0:19:060:19:12

database, that would make someone a

prohibited possessor of a weapon and

0:19:120:19:19

the data from doctors and mental

health situations that say someone

0:19:190:19:24

is seriously ill and should not

possess a weapon. There is not

0:19:240:19:31

enough connectivity.

This person was

prevented from owning a weapon by

0:19:310:19:40

the state of Texas.

Someone who has

shown a propensity for violence and

0:19:400:19:45

violence to a child and we are

hearing more today about a

0:19:450:19:53

propensity to violence.

So more

enforcement of the existing rules

0:19:530:19:56

rather than numerals. So in a

country where there are £270

0:19:560:20:06

million, has Congress accepted that

this is the cost of living in

0:20:060:20:12

American society?

Congress should be

doing more to push the mental health

0:20:120:20:19

professionals and the states to

collect that data and push it to the

0:20:190:20:23

FBI so that their database has the

maximum potential impact. That would

0:20:230:20:29

ideally prevent somebody from like

this purchase is guns. There are

0:20:290:20:33

certainly other holes in the system.

One is the gun show loophole. I

0:20:330:20:40

think it is outside of a gun show

where I can sell Katty a gun and

0:20:400:20:47

there would be no record of it.

A

lot of people say there is always

0:20:470:20:53

policy when it is somebody like a an

Uzbek who most are people in New

0:20:530:21:01

York but we never have policy when

people are white and middle-aged.

0:21:010:21:06

Any time one of these events

happens, you start having a

0:21:060:21:11

conversation about gun control. One

way of controlling prohibited

0:21:110:21:15

offenders from having a gun is by

having robust data and having the

0:21:150:21:20

gunshot data and others saying there

is no good for you. There is a lot

0:21:200:21:24

of other ways to kill people, we saw

one of those in New York recently so

0:21:240:21:31

there is a lot of work to do in

America. A lot of

a lot of people in

0:21:310:21:41

America have mental health problems

and yet do not kill people. Isn't

0:21:410:21:45

the issue still that if you have

access to guns, if you have mental

0:21:450:21:50

health, you might shoot somebody but

if there is the gun, it is is the

0:21:500:21:59

problem?

I think part of the issue

is the lack of broad-based mental

0:21:590:22:06

health care that results in so many

people being institutionalised, not

0:22:060:22:12

in a mental health treatment

facility but in prison. That has to

0:22:120:22:15

be resolved. We are never going to

get the system perfect but we have

0:22:150:22:20

to start taking steps in the right

direction. One of the things that

0:22:200:22:25

you see over and over again is that

there are almost always pre-event

0:22:250:22:30

indicators. The immediate family and

close friends, those people who

0:22:300:22:34

observe every day can say something

is changing, something is

0:22:340:22:42

contextually inappropriate, the

focus on weapons, threatening text,

0:22:420:22:45

we are hearing evidence of it in

this case. We are not that good

0:22:450:22:51

about seeing something and saying

something.

I can very much indeed.

0:22:510:22:57

Very interesting. We will see what

Donald Trump says when he is about

0:22:570:23:01

it. He is in Japan at the moment.

Just before we go to the break, we

0:23:010:23:06

have got some nice pictures of him

and Prime Minister Abe in Japan. A

0:23:060:23:17

great photo opportunity. They have a

box of coy carp food and spoons. You

0:23:170:23:21

get the sense that after five or six

throws, they get a bit bored of

0:23:210:23:26

this. Mr Abe does. He chucks his in

and Donald Trump falls follow suit.

0:23:260:23:38

Somehow feeding fish has got onto

the agenda when they are on the

0:23:380:23:42

trip. You can just think of them

thinking, this wasn't one of the

0:23:420:23:47

things we should be doing on the

world stage. Prime Minister Abe

0:23:470:23:53

taking the lead. A whole lot of

people are saying they have given

0:23:530:23:56

too much food to the fish. One new

line on the harassment story in the

0:23:560:24:09

UK. We've been following it over the

last week. The Prime Minister has

0:24:090:24:14

sent out an announcement and she has

said there is a completely new

0:24:140:24:19

grievance procedure for parliament

that will come into effect in the

0:24:190:24:23

New Year. She has been meeting with

the party leaders today and they

0:24:230:24:26

have agreed that there should be a

completely new grievance procedure

0:24:260:24:36

for staff working here. If there has

been sexual harassment or bullying

0:24:360:24:39

of any sort employees should feel

comfortable that they are able to

0:24:390:24:45

come forward. Meanwhile, a man has

been charged with assault after

0:24:450:24:54

attacking US Senator Rand Paul. It's

not known what prompted the attack.

0:24:540:25:01

A judge in Belgium has ordered the

release of the Catalan leader Carles

0:25:010:25:07

Puigdemont. He is wanted on charges

including rebellion and sedition.

0:25:070:25:17

Extradition proceedings could begin

within two weeks. Catalonia made a

0:25:170:25:25

unilateral declaration of

Independence, you may remember, last

0:25:250:25:28

month. Plenty more to come. We will

be hearing from the head of the

0:25:280:25:33

OECD. You are watching 100 days from

the BBC.

0:25:330:25:47

Coming up for viewers on the BBC

News Channel and BBC World News -

0:25:510:25:54

as climate change talks begin

in Germany, we go live to Fiji

0:25:540:25:57

where the race to stop rising sea

levels gets more frantic by the day.

0:25:570:26:01

And next stop Seoul -

as President Trump leaves Tokyo

0:26:010:26:03

to continue his Asian tour,

what advice did he have

0:26:030:26:06

for the Japanese when it comes

to containing North Korea?

0:26:060:26:07

for the Japanese when it comes

to containing North Korea?

0:26:070:26:08

That's still to come.

0:26:080:26:11

Monday has allowed Autumn to show a

variety of faces across the British

0:26:110:26:17

Isles. It depended way you spend the

day. In the north-west, cloudy, wet

0:26:170:26:21

and windy. After a chilly start

further south, a glorious sort of a

0:26:210:26:28

day. Sunshine for the greater part

of the day. Cloud eventually

0:26:280:26:34

tempering the sunshine if not

robbing you of it altogether. That

0:26:340:26:38

cloud is going to be quite

important. That will help to keep

0:26:380:26:43

temperatures up. Slow progress on

this weather front. Cloudy, wet, and

0:26:430:26:50

windy weather already over the North

West of Scotland. Gradually it moves

0:26:500:26:55

to other northern and western parts

of the British Isles. Temperatures

0:26:550:27:00

will be closer towards the front but

behind it they may dip away. So,

0:27:000:27:08

little bit of sunshine north of the

great Glen, perhaps. Everywhere

0:27:080:27:17

south, from the West through to

Wales and the south-west, a

0:27:170:27:21

combination of wet and windy

weather. Another cloud for the odd

0:27:210:27:26

showery burst ahead of that through

the south-west. Further east, some

0:27:260:27:32

sunshine to start of the day. You

may hang onto it for a few hours.

0:27:320:27:38

This frontal system only moving very

slowly indeed. It will be well into

0:27:380:27:43

the afternoon before it shows its

hand down towards the wash and into

0:27:430:27:49

Sussex. A combination of sunny

spells and showers. Those clouds

0:27:490:28:01

wanting to clear again. So into

Wednesday we might have a widespread

0:28:010:28:06

frost. Particularly in rural areas

and in western Britain. Don't be

0:28:060:28:12

surprised if the morning looks like

that. Wednesday, giving me the sense

0:28:120:28:20

that it might look just a little bit

like Monday with a eventually more

0:28:200:28:24

cloud and wind and rain showing its

hand through the North West of

0:28:240:28:27

Scotland.

0:28:270:28:30

This is Beyond One Hundred Days,

with me Katty Kay in Washington -

0:30:090:30:12

Christian Fraser's in London.

0:30:120:30:13

President Trump's Commerce Secretary

denies misleading Congress

0:30:130:30:15

after leaked documents,

known as the Paradise Papers,

0:30:150:30:17

exposed his involvement in a company

with links to Russia.

0:30:170:30:25

The papers also reveal tech giant

Apple has a pile of cash worth tens

0:30:250:30:29

of billions of dollars in Jersey

where it pays no tax

0:30:290:30:33

Coming up in the next half hour -

0:30:340:30:35

President Trump continues his tour

of Asia and tells Tokyo to buy

0:30:350:30:38

more American weapons,

to shoot down North

0:30:380:30:40

Korean missiles.

0:30:400:30:46

We report live from the Fijian

island where climate

0:30:460:30:48

change is forcing families

from their homes.

0:30:480:30:49

Let us know your thoughts

by using the hashtag...

0:30:490:30:52

'Beyond-One-Hundred-Days'

0:30:520:31:02

Most people don't understand

the complexities of offshore tax.

0:31:020:31:04

They have no need to -

they don't have enough money

0:31:040:31:07

to consider the schemes

and arrangements on offer.

0:31:070:31:09

But the Paradise Papers provide us

with a unique insight into how some

0:31:090:31:12

of our biggest organisations,

and the super rich, do it -

0:31:120:31:15

to avoid the taxes they might pay.

0:31:150:31:24

It's legal but it certainly

doesn't feel fair.

0:31:240:31:26

For years the OECD has been looking

at the tapestry of schemes

0:31:260:31:28

and networks that exist and trying

to find ways to close the loop

0:31:280:31:32

holes, for the benefit of cash

strapped governments.

0:31:320:31:33

Today the OECD Secretary-General

Angel Gurria was in London -

0:31:330:31:36

so I asked him, what has changed.

0:31:360:31:38

Isn't it still one rule for the rich

and another for everyone else?

0:31:380:31:48

You are talking about legacy, the

past, this is the way it used to be,

0:31:590:32:08

the past that is haunting us, we are

dismantling these structures. The

0:32:080:32:12

Panama papers and the Paradise

papers show some accounts which may

0:32:120:32:17

be in the taxman or tax woman's desk

in the next few months. There is now

0:32:170:32:21

automatic exchange of tax

information, which there was not in

0:32:210:32:23

the past. We are moving along

because they came politically

0:32:230:32:25

impossible and intolerable to

continue to have the situation.

You

0:32:250:32:31

stated in the past, the files reveal

America's most profitable company,

0:32:310:32:36

Apple, shopped around Europe and the

Caribbean for a new tax scheme after

0:32:360:32:41

Senate enquiry found they had moved

tens of billions of dollars. Even

0:32:410:32:46

after they had been found out they

were looking for ways to shelter the

0:32:460:32:49

money.

Well, of course they will

probably always continue to do that.

0:32:490:32:55

The question is how to convince them

there is nowhere to hide. What

0:32:550:32:59

happens now Apple has been fined 13

billion figures they were found to

0:32:590:33:05

have received state aid, the

equivalent of these tax facilities.

0:33:050:33:11

Now they have to pay this, it even

to Ireland or somebody. I believe

0:33:110:33:18

this belongs mostly to the United

States. When the United States

0:33:180:33:23

changes their tax laws and they

allow for the repatriation of these

0:33:230:33:27

profits, that are parked abroad.

Important to point out these

0:33:270:33:31

companies have not done anything

illegal. They are bending the rules?

0:33:310:33:37

Listen, what they are doing is using

the rules to their advantage.

0:33:370:33:42

Therefore what we should do is

change the rules.

Donald Trump at

0:33:420:33:47

the moment slashing corporate tax

rates, maybe people are saying if we

0:33:470:33:51

had to pay tax move to the countries

where there is a low corporate tax

0:33:510:33:55

rates. A race to the bottom.

If a

country can lower its tax rates and

0:33:550:34:01

still make ends meet, and have sound

public finances, well, so much the

0:34:010:34:06

better? The only question is you

have a tax rate, high or low, do not

0:34:060:34:16

give sweet are deals to any

particular company, do not give

0:34:160:34:20

privileges or prerogatives to any

company tax wise, so they will come

0:34:200:34:25

and establishing your company. If

you have lower overall tax rates,

0:34:250:34:30

companies come because they feel

attracted by that, that is it, there

0:34:300:34:35

will be other elements, like

productivity, the overall loss to do

0:34:350:34:41

business. The skill centre.

Can we

get you said reversing a decision on

0:34:410:34:54

Brexit would benefit the UK economy.

The Prime Minister has been

0:34:540:34:57

addressing the CBI, she says we

should go forward with rational

0:34:570:35:00

optimism.

It is inconsistent to say

we believe it cost something to go

0:35:000:35:10

through Brexit, that not going

through Brexit would save you money.

0:35:100:35:16

We continue to believe that. We are

now of course working with the UK,

0:35:160:35:22

for the UK, to make the process as

smooth and seamless as possible.

Do

0:35:220:35:27

you believe the Europeans are doing

that in an honest manner? Extending

0:35:270:35:38

the negotiating position is a

political decision?

It took 40 years

0:35:380:35:44

to create the Common Market, and the

European Union. There is absolutely

0:35:440:35:49

no reason why you should try to do

it in two years, because it is

0:35:490:35:53

written on some piece of paper. The

transitions that you need, you

0:35:530:35:57

should take, the terms you should

take. That goes for the Europeans,

0:35:570:36:02

who want a good deal, as much as for

the UK, who want a good deal.

0:36:020:36:10

Therefore, if you have both of the

parties involved wanting an

0:36:100:36:17

efficient, least disruptive deal

possible, then of course take as

0:36:170:36:20

much time as you need.

0:36:200:36:31

2017 is amongst the most warm on

record according to the Royal meet a

0:36:320:36:38

radical society. -- meter logical

society. The research was presented

0:36:380:36:46

on the opening day of the UN climate

talks Gerry change talks. The first

0:36:460:36:53

major summit of the international

community is President Trump took

0:36:530:36:56

the US out of the Paris agreement.

Climate change talks may be taking

0:36:560:37:00

place in Germany, but they are

hosted by Fiji, already feeling the

0:37:000:37:05

impact of rising sea levels.

Starting to relocate low-lying

0:37:050:37:10

coastal towns, with significant

human and financial costs. Let's get

0:37:100:37:21

more from a correspondent in Fiji.

Thank you for joining us. Tell us

0:37:210:37:25

the situation in Fiji making it the

host of these climate change talks.

0:37:250:37:30

How bad is it being felt there?

The

Fiji government has identified 68

0:37:300:37:39

coastal communities, little villages

which need to be relocated. They are

0:37:390:37:44

going to feel the impact of climate

change. Four those villages,

0:37:440:37:49

including one we had just been to,

they have already been evacuated and

0:37:490:37:53

moved to higher ground. The coastal

areas around her, trees, exposed

0:37:530:37:59

roots, it is more the human cost

that the Fiji government knows its

0:37:590:38:05

people are feeling.

Is Fiji

confident that hosting this

0:38:050:38:10

conference is going to give them an

opportunity to put their case to

0:38:100:38:13

developed countries? Basically

developing countries like Fiji are

0:38:130:38:17

paying the price of the excesses of

the developed countries?

Yes, indeed

0:38:170:38:27

they are. Also taking not just

Fiji's case, but also their Pacific

0:38:270:38:31

island neighbours. Fiji is one of

the lucky ones. There are coastal

0:38:310:38:37

communities having to relocate,

Kitty Vass does not have the luxury.

0:38:370:38:45

Two, three metres higher. They have

nowhere to go to. That is why the

0:38:450:38:52

government has bought five and a

half thousand acres of Fijian man.

0:38:520:39:03

They are planning to grow produce on

that land. Fiji is hoping that by

0:39:030:39:08

taking their neighbours and their

own cases to the world stage, people

0:39:080:39:12

will wake up and realise there are

real people affected.

Barbara what's

0:39:120:39:19

happening if the predictions are

correct? The sea may rise by up to

0:39:190:39:24

18 centimetres by 2030. Does not

sound a lot, but a low-lying land,

0:39:240:39:30

that will be quite devastating?

Absolutely. Already in the village

0:39:300:39:38

we went to yesterday, which has been

abandoned because of rising sea

0:39:380:39:41

levels, what would happen the higher

tides will just keep getting higher,

0:39:410:39:46

storm surges would increasingly

sweep through the village. Became

0:39:460:39:51

very unsafe for the people there.

They had to move. It is no easy

0:39:510:39:58

task. Costing around £300,000 just

to move that land. If there is

0:39:580:40:06

another 67 communities that has seen

move, that is a big costs. Also it

0:40:060:40:11

is the emotional cost. If you can

imagine having to leave behind the

0:40:110:40:16

graves of Iran censors, loved ones,

parents. It has been a huge

0:40:160:40:21

emotional ride for the people who

have had to be relocated, and there

0:40:210:40:26

are many more to come.

Thank you

very much. Christian and I tried to

0:40:260:40:36

promote the whole programme from

Fiji. Somehow our paymasters decided

0:40:360:40:40

that stretch the budget.

0:40:400:40:44

The 32-year-old Crown Prince

of Saudi Arabia is making

0:40:440:40:46

a huge power grab -

with the surprise arrests of dozens

0:40:460:40:49

of the most influential figures

in the Kingdom this weekend

0:40:490:40:52

and officials say

there are more to come.

0:40:520:40:54

Mohammed Bin Salman,

rounded up ministers,

0:40:540:40:55

businessmen and 11 of his own Royal

cousin.

0:40:550:41:01

The arrests were presented

as a crackdown on corruption.

0:41:010:41:03

But to many this looked

like the Crown Prince

0:41:030:41:05

consolidating his own position.

0:41:050:41:06

Among those detained,

one of the world's richest investors

0:41:060:41:08

Prince Alwaleed bin Talal,

and Prince Mutaib bin Abdullah,

0:41:080:41:10

a key rival to the crown prince.

0:41:100:41:12

Frank Gardner has spent

years reporting in Saudi

0:41:120:41:14

Arabia is with us.

0:41:140:41:16

What do you think is going on?

These

are absolutely seismic changes for

0:41:160:41:22

Saudi Arabia. A country not used to

sudden and big change, they're

0:41:220:41:27

getting it in the space of 48 hours,

a missile attack on Riyadh airport.

0:41:270:41:34

Helicopter crash where Prince 's

eye. This extraordinary public

0:41:340:41:37

humiliating round-up of

establishment figures. People right

0:41:370:41:41

at the top of Saudi society. They

are people who stand in the way the

0:41:410:41:45

Prince 's total mass mentor power

for himself. In terms of business,

0:41:450:41:49

the most important person, whose

wealth is estimated at $25 billion,

0:41:490:41:58

he is now reportedly being detained

in great comfort, it has to be said

0:41:580:42:02

at the Ritz-Carlton hotel in Riyadh,

alongside 30 others. The most

0:42:020:42:07

important political figure Prince

Abdullah, heading the National Guard

0:42:070:42:13

in Saudi Arabia. The National Guard

is almost like a third force. It is

0:42:130:42:20

the praetorian guard, that offends

the interest of the ruling family.

0:42:200:42:26

Whoever controls that is really in

charge of the internal power base.

0:42:260:42:30

He has basically brought that under

his control. He has the whole lot of

0:42:300:42:34

the Army, the Ministry of interior

and the National Guard. No one left

0:42:340:42:39

with a power base to challenging.

Younger Saudis are welcoming this.

0:42:390:42:43

Fed up with seeing their country's

Wealth squandered. Enormous

0:42:430:42:48

disparity is well. There are a

number of poor Saudis. The young

0:42:510:42:57

guard see him as the future. The old

guard are not happy.

I bet they are

0:42:570:43:01

not, even if they are put up at the

Ritz-Carlton. I live in Saudi Arabia

0:43:010:43:06

in the 1970s. There were still

stories of brothers deposing

0:43:060:43:12

brothers, multiple coups. I guess we

thought those days were over. When

0:43:120:43:16

one member of the Royal family tried

to grab power in this way. Does this

0:43:160:43:20

suggest it is not?

I'm amazed you

were alive in the 1970s.

You can

0:43:200:43:29

come on any time.

Not that kind of

come on. In all seriousness, this

0:43:290:43:37

has been described by Bruce Reidel,

at the Brookings Institute, the most

0:43:370:43:42

volatile period in Saudi Arabia's is

to be in 50 years. King Faisal was

0:43:420:43:47

assassinated in 1975. They have had

up evils, the oil shock of the

0:43:470:43:52

invasion of Kuwait. Nothing quite

like this. Always been enormous

0:43:520:44:00

respect, a toe curling deference to

these unelected super-rich Princes.

0:44:000:44:07

To be taken down publicly like this

is really quite unprecedented. As I

0:44:070:44:12

said just now to Christian, there

will be people in the old guard

0:44:120:44:16

Conservative people who do not like

the direction he is going to. The

0:44:160:44:21

bigger backdrop, President Trump

came to Saudi Arabia in May, I cover

0:44:210:44:24

the trip, a huge success. Many

Saudis consider he gave the green

0:44:240:44:30

light to Crown Prince Mohammed Bin

Salman to do what he wants. That is

0:44:300:44:34

the view in Saudi Arabia.

So

interesting.

0:44:340:44:45

The President Trump make progress in

his trade trip to Japan.

0:44:500:44:59

A man has been convicted

of murdering his toddler

0:44:590:45:01

daughter in Cardiff,

just two weeks after

0:45:010:45:03

formally adopting her.

0:45:030:45:04

Matthew Scully-Hicks, who's 31,

inflicted numerous injuries

0:45:040:45:05

on 18-month-old Elsie over

an eight-month period.

0:45:050:45:07

Here's our Wales

Correspondent Sian Lloyd.

0:45:070:45:17

Baby Elsie, Matthew Scully-Hicks

found guilty of murder. The fitness

0:45:210:45:39

instructor has been covering up

months of abuse to social services

0:45:390:45:42

and key workers. This was the

recording of the moment.

0:45:420:45:53

Her injuries included a fractured

skull, several broken ribs and a

0:45:590:46:02

broken leg. There was evidence of

recent and Oldham bleeding in her

0:46:020:46:07

brain.

0:46:070:46:09

Consistent with having been struck

by hard object. The prosecution said

0:46:090:46:15

Matthew Scully-Hicks were struggling

to cope with her. In text to his

0:46:150:46:19

husband working your way, he called

a psycho, and Satan dressed up to

0:46:190:46:25

baby grow. Matthew Scully-Hicks had

applied to a doctor through the Vale

0:46:250:46:30

of Glamorgan Council. He had been

abusing the girl while social

0:46:300:46:33

services were supervising the

adoption process. The actions of

0:46:330:46:38

social workers, together with the

other agencies involved with the

0:46:380:46:41

family will now be scrutinised by an

independent review. Matthew

0:46:410:46:46

Scully-Hicks will be brought back to

court tomorrow, to be sentenced for

0:46:460:46:49

the murder of his adopted daughter.

0:46:490:46:51

You're watching

Beyond One Hundred Days.

0:47:050:47:06

Golf,

0:47:060:47:07

burgers and North Korea

were on the menu for

0:47:070:47:09

President Trump in Japan today.

0:47:090:47:11

The US President celebrated

his strong relationship

0:47:110:47:13

with Prime Minister Abe and pushed

for a robust response

0:47:130:47:15

to Pyongyang's nuclear ambitions.

0:47:150:47:16

The two leaders said

they would work together to 'stand

0:47:160:47:18

against the North Korean menace'.

0:47:180:47:27

Long ago on a trip to Tokyo, Donald

Trump is reported to have called the

0:47:270:47:32

Imperial Palace and the Martyn Day

meeting with the Emperor. Today he

0:47:320:47:35

finally got his wish. He also got a

much grander welcome Dan is normal,

0:47:350:47:44

for what is not a state visit. In

deeper rock courtyard of the Palace,

0:47:440:47:51

he got the full treatment. Prime

Minister Scully-Hicks at his side.

0:47:510:47:59

-- Prime Minister Abe by his side.

Japan is running at the red carpet,

0:47:590:48:06

showing that the US is their best

friend in Asia. It also presents

0:48:060:48:13

nervousness about President Trump's

intentions. For one, the US

0:48:130:48:18

president is no fan of imported

Japanese cars. Today he told

0:48:180:48:24

business leaders here he would not

allow them to continue flooding into

0:48:240:48:27

the United States.

Right now, our

trade with Japan is not fair, and it

0:48:270:48:33

is not open. I know it will be soon.

We won three and reciprocal trade.

0:48:330:48:39

But right now our trade with Japan

is not three and it is not

0:48:390:48:43

reciprocal.

As they met for lunch,

the biggest concern for both leaders

0:48:430:48:51

was North Korea and its missile. Two

which recently have flown over

0:48:510:48:57

Japan. Mr Abe was asked if he agreed

with President Trump that they

0:48:570:49:02

should start shooting them down.

TRANSLATION: As far as shooting down

0:49:020:49:07

missiles, we will shoot them down if

necessary. We will coordinate

0:49:070:49:10

closely with the United States.

At

that President Trump appeared to

0:49:100:49:15

swat away reducing Japan's huge

trade surplus with United States.

I

0:49:150:49:22

will say, if I can take a piece of

the Prime Minister'sanswer. He will

0:49:220:49:27

shoot them out of the sky when you

complete the purchase of a lot of

0:49:270:49:31

additional military equipment from

the United States. Will easily shoot

0:49:310:49:37

them at the sky.

For President Trump

this visit has been a success.

0:49:370:49:42

Avoiding any serious gaffes, and in

Prime Minister Abe, he has found a

0:49:420:49:47

kindred spirit. He should not expect

the same as his next up, in South

0:49:470:49:51

Korea.

0:49:510:49:54

And with me now is Sheila Smith

a senior fellow for Japan

0:49:540:49:57

studies at the Council

on Foreign Relations.

0:49:570:50:01

First of all explained in relations

between Abe and Donald Trump. They

0:50:010:50:07

do not seem like natural bedfellows?

You are right. Prime Minister Abe

0:50:070:50:11

may be a mature to President-elect

Trump before he was in office. He

0:50:110:50:17

did not know him, never met him. A

new phase in American politics. The

0:50:170:50:22

alliance is very important to Japan.

Prime Minister Abe has encouraged

0:50:220:50:26

the personal relationship. They have

met five times including this visit.

0:50:260:50:34

Speaking on the phone 16 times over

the course of the year.

What Donald

0:50:340:50:38

Trump seems to be doing is pushing

Prime Minister Abe to take more

0:50:380:50:43

robust response to North Korea. If

you buy American weaponry you can

0:50:430:50:49

shoot down North Korean missiles. Is

he encouraging Japan to be more

0:50:490:50:56

militarised?

I think so, he made a

comment that China better watch out,

0:50:560:51:02

if they do not cooperate over North

Korea they will have a warrior Japan

0:51:020:51:07

to deal with. He's playing with the

threat of a more militarised Japan

0:51:070:51:11

to emphasise the Chinese

responsibility for the problem. Abe

0:51:110:51:15

wants to buy more capabilities,

Japan need them because of the

0:51:150:51:19

missile threat. This is a question

that will be a deeply troubling one

0:51:190:51:23

inside Japan. The Japanese people

may not appreciate the pace the

0:51:230:51:28

president is encouraging the premise

that.

A lot of leaders in Europe

0:51:280:51:32

will not see IT why would Donald

Trump. Waiting for the time he's not

0:51:320:51:35

there. Is it different for Prime

Minister Abe? He watches the United

0:51:350:51:41

States and gets nervous Donald Trump

may not be there for the duration?

0:51:410:51:47

Two things are important here. The

Japanese, the Liberal Democrats, his

0:51:470:51:52

party are a Conservative Party.

There has been a traditional

0:51:520:51:57

sympathy for the Republican Party in

the United States. The other piece,

0:51:570:52:01

the personal piece is important. Mr

Abe has avoided chastising Mr Trump,

0:52:010:52:08

taking him on in terms of the issues

relating to democratic practice.

0:52:080:52:13

What many of the European leaders

worry about. On the reverse side

0:52:130:52:17

President Trump has not put the same

kind of pressure on Japan he has put

0:52:170:52:23

on the trade front on his European

allies. Chancellor angular Merkel,

0:52:230:52:27

or even South Korea. He basically

lay down the law in the middle of

0:52:270:52:32

the North Korean crisis, the trade

agreement with soul had to be

0:52:320:52:35

renegotiated. He has not done that

to Prime Minister Abe. The Prime

0:52:350:52:42

Minister encouraging a more private

negotiation on economics.

We talked

0:52:420:52:48

before about the misconception that

Japan is a pacifist nation. It does

0:52:480:52:52

not want to become a militarised

nation. Has the debate changed, and

0:52:520:53:00

they may react differently to

shooting down missiles?

I think you

0:53:000:53:03

are both right. I am working on a

book actually addressing this

0:53:030:53:08

question. Japan has been rearmed for

decades. It has one of the most

0:53:080:53:14

professional and competent

militaries. Technologically advanced

0:53:140:53:16

militaries in Asia. What is

different, the Japanese are hesitant

0:53:160:53:22

about the use of force. The

conditions in which they are

0:53:220:53:27

permitted under the current Gaza

Jewish and to use force. In the

0:53:270:53:31

public domain there is a very strong

consensus that Japan should use

0:53:310:53:34

force only in self-defence. Not for

offensive purposes. As Japan's

0:53:340:53:39

neighbours get more lethal in their

military capabilities, the Japanese

0:53:390:53:44

will have to think carefully about

how this question on the use of

0:53:440:53:48

force affects their posture.

0:53:480:53:50

I know this seems crazy, it is

election day in United States again.

0:54:000:54:07

A view races that are important. One

of which in Virginia. I will head

0:54:070:54:13

down to Richmond Virginia, the

capital, about two hours south of

0:54:130:54:16

Washington, DC. A world away from

the nation's capital. Feeling very

0:54:160:54:21

southern. We will report on the

Governor's race. A bellwether proxy

0:54:210:54:27

for the bigger debate between

Democrats and Republicans. We will

0:54:270:54:31

be in Richmond Virginia. In what

sense, a bellwether? Are they voting

0:54:310:54:39

on Trump, all issues closer to home?

Virginia has been a swing state, a

0:54:390:54:45

state traditionally Southern. Areas

very conservative. A big influx of

0:54:450:54:51

immigrants. Becoming more

democratic. This particular race is

0:54:510:54:58

interesting. The Republican

candidate has not allowed Donald

0:54:580:55:02

Trump to come and campaign for him.

He has adopted a lot of the

0:55:020:55:07

anti-immigrant, more hardline

message is, what we may call Donald

0:55:070:55:15

Trump's policy. The Democratic

candidate, he has been trying to put

0:55:150:55:20

over Aymore Moreira, classic

century, democratic message. The

0:55:200:55:23

question about Virginia, can all of

the anti-Trump feeling amongst

0:55:230:55:31

Democrats, the base being riled up,

the anger you feel in the resistant

0:55:310:55:35

movement, does it translate into

votes and a winning? That is the big

0:55:350:55:40

question in Virginia? Can Democrats

feel they can actually win with his

0:55:400:55:45

opposition to Donald Trump? That

will be the interesting question.

0:55:450:55:48

Plus Richmond is really nice. Who is

coming to keep the company? My son.

0:55:480:55:58

Who is studying. And

0:55:580:56:00

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