30/08/2016

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:00:09. > :00:13.Hello, I'm Ros Atkins, this is Outside Source.

:00:14. > :00:18.An hour of international news live from the BBC newsroom.

:00:19. > :00:23.Apple is at the centre of our lead story.

:00:24. > :00:31.Apple's effective tax rate in 2011 was 0:0.5 -- was 0.005%.

:00:32. > :00:34.The European Union says Apple has to pay Ireland 13 billion

:00:35. > :00:48.We'll explain why. We will also be live at Apple's headquarters in

:00:49. > :00:55.California. Nearly 7000 migrants have been saved off the coast of

:00:56. > :00:57.Libya. It is the busiest day for the Italian coastguard in several years.

:00:58. > :00:59.Also, The Zika virus has spread to Singapore -

:01:00. > :01:02.The government is advising all pregnant women with

:01:03. > :01:17.We will also get the help of the BBC World Service on the state of

:01:18. > :01:20.Uzbekistan's President's ill-health. Not a part of the world we talk

:01:21. > :01:24.about much but the head of the BBC's Central Asia Service will be

:01:25. > :01:26.here to talk about And scientists say the earth has

:01:27. > :01:30.entered a new geological age - now they are trying to work out

:01:31. > :01:33.what defines it. Our science reporter

:01:34. > :01:53.is here with more on that story. Apple's 's European headquarters are

:01:54. > :01:57.in Dublin. The European Union wants the Irish government to claim 13

:01:58. > :02:00.billion euros in back tax from Apple.

:02:01. > :02:02.The EU argues it paid minimal tax on its profits.

:02:03. > :02:06.For example, two years ago Apple paid 0.005%

:02:07. > :02:15.Normally, companies in Ireland usually pay 12.5%.

:02:16. > :02:21.Both Apple and Ireland are taking issue with the ruling -

:02:22. > :02:26.They will face stiff opposition. Here is a tweet from Martin Schulz,

:02:27. > :02:35.the president of the European Parliament.

:02:36. > :02:41.Next, let me play you a report on the story.

:02:42. > :02:47.It is a vastly wealthy technology company.

:02:48. > :02:51.Their products earn money around the world.

:02:52. > :02:53.Outside America, nearly all of Apple's sales

:02:54. > :02:56.revenues are channelled through one small country.

:02:57. > :02:59.Now the deal made between the Irish government and Apple has been

:03:00. > :03:02.ruled illegal and the tech firm have been told to pay back

:03:03. > :03:09.We've found that the Irish have allowed the huge majority

:03:10. > :03:19.of the profits of Apple sales international to be sent to a head

:03:20. > :03:22.office which only exists on paper and which is not taxed and that

:03:23. > :03:27.means a large majority of the profits are not taxed.

:03:28. > :03:33.It was in 1980 that Steve Jobs opened his first

:03:34. > :03:48.Along the way they signed the tax deal which the

:03:49. > :04:00.We should not have given them a deal like that.

:04:01. > :04:03.It would be marvellous if this country got the tax.

:04:04. > :04:05.I suppose the other thing is they could leave

:04:06. > :04:09.I think it is fair, they are making a lot of profits.

:04:10. > :04:12.The European Commission says at one point Apple were paying

:04:13. > :04:18.That meant on every 1 million euros they took they paid tax of 50 euros.

:04:19. > :04:21.But Apple says the expensive development takes place

:04:22. > :04:34.in America and that is where it should pay tax.

:04:35. > :05:05.Apple says it is the largest taxpayer in both Ireland

:05:06. > :05:07.and the United States and this afternoon the White House expressed

:05:08. > :05:33.concern about Europe's general stance on tax.

:05:34. > :05:36.We are concered about this approach that threatens to undermine progress

:05:37. > :05:38.we have worked on collaboratively with the Europeans.

:05:39. > :05:41.Ireland has worked hard to bring tech jobs to the country so is

:05:42. > :05:48.But the EU are determined to change the rules of the game.

:05:49. > :05:59.Their Deputy political editor of the Irish Daily Mail, asking a question

:06:00. > :06:05.a lot of people are asking. -- the Deputy political editor. The

:06:06. > :06:10.argument is that the economic benefits that come from hosting

:06:11. > :06:15.companies like Apple outweigh the extra tax they could try to recoup.

:06:16. > :06:33.Not one-way traffic in Ireland. Clearly there is a healthy debate

:06:34. > :06:37.over how this should be approached. The ruling today is clearly part of

:06:38. > :06:41.a broader struggle between some of the world's most powerful countries

:06:42. > :06:47.and some of the world's most powerful companies. To understand

:06:48. > :06:50.that dynamic better I turn to Simon Jack who has spent the day in

:06:51. > :06:54.Dublin. I think there is this trade-off

:06:55. > :06:59.about the power of the multinationals. Lots of countries

:07:00. > :07:02.use their tax regime as a come-hither, an attraction to global

:07:03. > :07:06.companies. Point is, with everybody setting their road tax rate it easy

:07:07. > :07:09.for multinational companies, particularly the modern companies

:07:10. > :07:13.which are not manufacturing stuff and selling stuff within

:07:14. > :07:16.jurisdictions, these are intellectual properties, royalties

:07:17. > :07:19.on those intellectual rights. It's difficult to pin down where the

:07:20. > :07:23.money is earned and where the costs are actually incurred. That allows

:07:24. > :07:29.multinational companies like Apple to play governments off against each

:07:30. > :07:31.other. That is why they think they need an approach with all of the

:07:32. > :07:39.governments on board. They think they don't have that in place after

:07:40. > :07:43.this ruling from the EC today. This ruling has come from Brussels.

:07:44. > :07:49.It will be contested in Dublin. Meanwhile, thousands and thousands

:07:50. > :07:59.of kilometres to the west is where Apple is based, in Cupertino. Our

:08:00. > :08:03.correspondent is there. Apple isn't normally a company that takes a

:08:04. > :08:09.backward step, so we will expect a vigorous stance, I suspect.

:08:10. > :08:12.Yes, it's already come. Tim Cook published a letter on the company's

:08:13. > :08:17.website mostly saying how disappointed he was with the ruling.

:08:18. > :08:23.He said it had implications for jobs in Europe and Ireland. He said Apple

:08:24. > :08:26.would continue to invest in Ireland. That situation hasn't changed. But

:08:27. > :08:30.he followed that statement up by saying that is because they are

:08:31. > :08:33.confident they will win their appeal against this decision. If they don't

:08:34. > :08:39.win that appeal and they have to pay this massive tax bill, whether their

:08:40. > :08:45.presence in Ireland where they hire almost 6000 people, whether that

:08:46. > :08:49.will remain. Apple is annoyed, fair to say, it's disappointed, thinks it

:08:50. > :08:52.has been unfairly treated, which is also what the US government thinks

:08:53. > :08:57.of the situation. It is determined to fight with this appeal. In the

:08:58. > :09:01.meantime it has to pay that money pretty quickly. It is going to pay

:09:02. > :09:03.even though they are appealing. They will have to hand the money over

:09:04. > :09:07.relatively quickly after this decision.

:09:08. > :09:11.It is a legal argument but there is also a moral argument that a company

:09:12. > :09:16.as big as Apple ought to be paying significant amounts of tax on its

:09:17. > :09:22.profits. What does Apple say to that moral argument?

:09:23. > :09:27.Apple says it has been working within the tax laws of each country

:09:28. > :09:33.it's been living in. They say they pay their fair share. Despite the

:09:34. > :09:37.tax situation in Ireland it is still the country's biggest taxpayer. One

:09:38. > :09:44.argument that comes from particularly the US government is

:09:45. > :09:47.that all of Apple's hard work of curating its products, the iPhone,

:09:48. > :09:51.iPod, so one, that happens here at HQ. It anywhere should be getting

:09:52. > :09:59.more tax money the US argues it should be here in the United States.

:10:00. > :10:03.-- and so on. If Apple does eventually pay this bill, that

:10:04. > :10:08.amount, that 13 billion euros, almost $15 billion, that will be

:10:09. > :10:11.offset against US tax. That is money essentially leaving the US economy

:10:12. > :10:15.and arriving into the European economy. Obviously the US government

:10:16. > :10:18.is particularly concerned about that.

:10:19. > :10:22.This time yesterday we saw that invite go out about an Apple event

:10:23. > :10:26.on the 7th of September. You a good place to find out what they are

:10:27. > :10:30.going to tell us. -- you are in a good place.

:10:31. > :10:34.They will be hoping to business as usual next week when they launched

:10:35. > :10:38.the new iPhone. But the iPhone has not been doing as well as it has in

:10:39. > :10:40.previous years. Apple has been fighting several battles on several

:10:41. > :10:45.fronts at the moment. Thanks very much.

:10:46. > :10:54.Let's turn from that story which is playing out in Brussels, Dublin and

:10:55. > :10:57.California to a very urgent story in the Mediterranean. The Italian Coast

:10:58. > :11:03.Guard says it has had one of its busiest days in years. There have

:11:04. > :11:07.been 14 coordinated mission saw off the coast of Libya in North Africa.

:11:08. > :11:13.The latest figures the authorities are providing is that almost 7000

:11:14. > :11:19.people have been rescued. All of them, we understand, in one area, 20

:11:20. > :11:29.kilometres off the coast of the Bristol city. They are hoping to

:11:30. > :11:35.reach an Italian island, Lampaduna, where we have reported on the story

:11:36. > :11:38.many times before. Already this year 112,000 migrants have arrived there.

:11:39. > :11:42.Many of them across the Mediterranean from Libya. The report

:11:43. > :11:43.we have on this story comes from our diplomatic correspondent James

:11:44. > :11:56.Landale. When you're tired and desperate,

:11:57. > :11:59.and so close to safety, A final leap of hope

:12:00. > :12:02.after a journey that has Just some of the almost 7000

:12:03. > :12:07.who were rescued on Monday. It is a crisis were the numbers

:12:08. > :12:17.are already extraordinary. Most were picked up 13 miles off

:12:18. > :12:24.the western Libyan coast. Packed into fishing boats and 44

:12:25. > :12:26.inflatable dinghies, often with just enough fuel

:12:27. > :12:35.to reach international waters. Phoned around 5am, they had been

:12:36. > :12:39.for 14 hours, and in that time we rescued over 5000 people,

:12:40. > :12:41.according to the information we have Rescuers said most of the migrants

:12:42. > :12:50.appeared to be from sub Saharan Africa, from Eritrea,

:12:51. > :12:52.Somalia, and Nigeria, encouraged to leave the beaches

:12:53. > :12:59.and take to the sea. They were rescued by ships

:13:00. > :13:02.from the Italian coastguard, aid agencies and even

:13:03. > :13:06.the British Navy. The survey vessel HMS Enterprise

:13:07. > :13:09.picked up more than 700 of the migrants and will land

:13:10. > :13:15.them in Italy tomorrow. The International organisation

:13:16. > :13:17.for migration says so far this year 111,000 migrants have

:13:18. > :13:19.been rescued in the central At the same time, some

:13:20. > :13:29.2700 have died. Those are pretty similar numbers

:13:30. > :13:31.to the same period last year Even though migration across

:13:32. > :13:39.the eastern Mediterranean here has dropped substantially since the deal

:13:40. > :13:41.with Turkey, the numbers crossing from Libya do not appear

:13:42. > :13:46.to have risen as a result. The migrants keep coming

:13:47. > :13:53.because there is no safety or work And there's always the chance

:13:54. > :13:59.of rescue in the sea. It's a very dangerous

:14:00. > :14:01.journey and people don't This evening, the first of those

:14:02. > :14:14.rescued in recent days If others are prepared to go to sea,

:14:15. > :14:22.even with newborn twins, The Italian coastguard

:14:23. > :14:26.expect more to come whilst Hello, I'm Ros Atkins,

:14:27. > :14:36.this is Outside Source. An hour of international

:14:37. > :14:47.news live Authorities in Singapore are saying

:14:48. > :14:56.all pregnant women with symptoms of the Zika virus should get themselves

:14:57. > :14:59.tested. We also had another confirmation -- also had

:15:00. > :15:08.confirmation of another 26 cases. The cases have been found in the

:15:09. > :15:15.same area which is Aljunied Crescent. This means a wider part of

:15:16. > :15:18.Singapore is affected. Some countries have responded directly,

:15:19. > :15:22.telling pregnant women to avoid going to Singapore. Here are the

:15:23. > :15:38.thoughts of some people who live there. Afraid, because I hurt about

:15:39. > :15:44.how difficult it is to be pregnant with the Zika virus. I'm afraid

:15:45. > :15:48.about it going on and how it might affect my relatives. Steps should be

:15:49. > :15:59.taken to find out how or why the sudden spread has occurred. My

:16:00. > :16:04.husband has suggested to me that I should go for a checkup. If it is

:16:05. > :16:08.positive then it is quite bad. If it is not quite safe. So I don't worry

:16:09. > :16:16.that much. But I am doing the checkup. We should emphasise that

:16:17. > :16:19.the Zika virus has been far more prevalent in South and Central

:16:20. > :16:26.America. If you would like more information on how it has manifested

:16:27. > :16:30.itself there, go to the BBC News website. In a moment, a big

:16:31. > :16:39.political story in France. The French economy Minister Emanuel

:16:40. > :16:40.Macron has resigned. And there is speculation he may be looking to

:16:41. > :16:49.become the next French president. Researchers say almost a third of

:16:50. > :16:53.patients in England and Wales are being given the wrong initial

:16:54. > :16:57.diagnosis after a heart attack. The British Heart Foundation says women

:16:58. > :17:01.are more likely than men to be misdiagnosed and it is beginning a

:17:02. > :17:07.campaign to make people more aware of the symptoms. Doctor Kevin Fox,

:17:08. > :17:09.from British cardiovascular Society, speaks.

:17:10. > :17:13.Although their tremendous pressures on the NHS and all health care staff

:17:14. > :17:19.are working hard, in this particular case it is about money. Prevention,

:17:20. > :17:22.which is the first step, if women are not having heart attacks that's

:17:23. > :17:27.fantastic, that isn't necessarily expensive. -- it is not about money.

:17:28. > :17:32.Awareness and alertness, that isn't expensive. Diagnosis and treatment,

:17:33. > :17:38.yes, expensive, but it is cheaper to get the right diagnosis to the right

:17:39. > :17:43.patient at the right time. This is not entirely a question of money as

:17:44. > :17:52.is being reported in the media, it is about optimisation of care.

:17:53. > :17:54.Hello, I'm Ros Atkins, this is Outside Source.

:17:55. > :17:55.An hour of international news live

:17:56. > :18:04.The European Union has told Apple to pay back 13 billion euros in taxes

:18:05. > :18:07.to Ireland. That is where the company has its European

:18:08. > :18:11.headquarters. The EU is saying Ireland offered on fair tax breaks

:18:12. > :18:19.to Apple. Ireland and Apple will appeal the rule. Some of the main

:18:20. > :18:22.stories: From BBC Arabic, it is reporting the death of one of the

:18:23. > :18:30.Islamic State group's most senior leaders. A website affiliated to the

:18:31. > :18:31.group said its spokesman was killed while surveying operations in

:18:32. > :18:39.Aleppo. Dilma Rousseff has resumed her

:18:40. > :18:41.defence at her impeachment On Monday she spent fourteen hours

:18:42. > :18:44.rejecting allegations that she manipulated government

:18:45. > :18:45.Budget accounts. Senators have the option

:18:46. > :18:47.of reinstating or removing her as President -

:18:48. > :18:50.the latter if far more likely. We have covered drone racing before,

:18:51. > :19:01.now this. It's a self-driving car

:19:02. > :19:03.being trialled on a race track. The company behind it want to launch

:19:04. > :19:19.a competition featuring self Let's go back to our top story. The

:19:20. > :19:23.decision by the European Union to instruct Apple to pay 13 billion

:19:24. > :19:32.euros in back tax to the Irish government. We are joined by dashed

:19:33. > :19:39.earlier, we were joined by a former Nobel Prize winner. -- earlier, we

:19:40. > :19:43.were joined. The first corporate responsibility is paying your fair

:19:44. > :19:50.share of taxes. Not trying to avoid taxes. When you operate in a

:19:51. > :19:53.country, where you produce and sell in a country, you have an obligation

:19:54. > :20:00.to pay taxes. There has been a culture developed where you are a

:20:01. > :20:07.hero amongst CEOs if you can avoid paying taxes. We can now talk about

:20:08. > :20:11.some of the issues raised with Michelle. We focused on the European

:20:12. > :20:16.decision with regard Apple, what is the relationship between the

:20:17. > :20:19.American regulators and Apple on this issue? In this particular

:20:20. > :20:24.instance we are seeing the US Treasury come out in support of

:20:25. > :20:28.Apple. Certainly suggesting that perhaps the EU has overstepped in

:20:29. > :20:33.this particular instance ahead of this decision about a week ago the

:20:34. > :20:37.US Treasury issued a white paper talking about this novel approach

:20:38. > :20:40.that the EU had taken towards some sort of tax investigations, and

:20:41. > :20:44.saying they found this deeply troubling. Today they said they

:20:45. > :20:50.found the ruling disappointing. They were concerned that perhaps US

:20:51. > :20:54.companies were being targeted. I was talking with Dave Lee, who is at the

:20:55. > :20:57.Apple headquarters, we were talking about the legal and moral argument.

:20:58. > :21:06.Clearly the EU is making a moral argument. I get the impression Apple

:21:07. > :21:10.says, look, there are different ways you can contribute to society. If

:21:11. > :21:15.you look at the letter Tim Cook wrote, his press release response,

:21:16. > :21:19.one of the arguments, or The KC made was, hang on, we entered into an

:21:20. > :21:25.agreement with Ireland, we complied with the law that was set out to us.

:21:26. > :21:29.-- all the case made was. What is interesting is how the US government

:21:30. > :21:33.and Treasury has responded. In this case they feel the EU has

:21:34. > :21:37.overstepped the mark a bit. But the irony is, if you look at the US

:21:38. > :21:44.Treasury it has had its own problems with some multinationals who have

:21:45. > :21:47.relocated overseas to reduce their tax bill. We see the government is

:21:48. > :21:50.aligning with American corporate interest. But that isn't necessarily

:21:51. > :21:55.always the case when it comes to collecting tax dollars. Presumably

:21:56. > :21:59.the long-term prospects of tax collecting will be in part decided

:22:00. > :22:04.by who comes into the White House next. We could see different

:22:05. > :22:07.approaches to corporate tax and the treatment of corporations by

:22:08. > :22:12.government. Well, we've heard a lot on the campaign trail, certainly

:22:13. > :22:15.from Donald Trump. The presidential hopeful has talked about reducing

:22:16. > :22:20.substantially the corporate tax rate, which currently stands at

:22:21. > :22:27.around 35%, reducing it to sort of essentially to the kind of 15%

:22:28. > :22:30.range. Whether or not that is achievable, it is something that

:22:31. > :22:34.Congress has wrestled with for a long time and no doubt we will hear

:22:35. > :22:40.more about these debates. The other area which could also be impacted by

:22:41. > :22:44.this going forward, how governments around the globe work together. We

:22:45. > :22:49.have seen various efforts, certainly among G20 countries, trying to

:22:50. > :22:55.tackle this idea of taxes, making sure that companies that do not play

:22:56. > :22:58.governments against each other -- making sure that companies do not

:22:59. > :23:03.play governments against each other. But this seems to be an issue. It

:23:04. > :23:06.will continue because we have other companies including Amazon and

:23:07. > :23:15.McDonald's still being investigated for deals in Luxembourg. Thanks very

:23:16. > :23:18.much. Very useful. To France, there is a big political story which could

:23:19. > :23:24.have economic consequences. The economy Minister, Macron, has

:23:25. > :23:27.resigned from the government and there is heavy speculation he will

:23:28. > :23:31.look to stand for president next year. Let's get the thoughts of the

:23:32. > :23:47.BBC's Hugh Schofield. The economy Minister, Macron, is

:23:48. > :23:54.resigning to Francois Hollande. It is a big story around the world. He

:23:55. > :23:57.has become perhaps one of the most recognisable figures in the French

:23:58. > :24:02.government. He's young, he's freshfaced, he looks like the boy at

:24:03. > :24:08.the top of the class, and he's a social and economic liberal. That's

:24:09. > :24:11.key. Since he came to his ministerial post, he has pioneered a

:24:12. > :24:15.number of measures to open up the French economy. He has been

:24:16. > :24:19.partially successful. Increasingly he's run into opposition from parts

:24:20. > :24:24.of the government. Francois Hollande one of them. There has been growing

:24:25. > :24:28.tension. Now he has decided to hand in his resignation. The key point is

:24:29. > :24:35.that we are eight months from a presidential election. Does this

:24:36. > :24:40.mark Macron's bid to enter the presidential race? Well, that's the

:24:41. > :24:43.big question. Mark Zuckerberg has been in Lagos meeting young

:24:44. > :24:48.entrepreneurs. He posted this picture online earlier saying he had

:24:49. > :24:52.come to Lagos to learn about the start-up ecosystem in Nigeria. Some

:24:53. > :25:01.of the people who have been helping him to do that have been speaking to

:25:02. > :25:05.the BBC. I just met Mark Zuckerberg. I'm so happy. It was cool, very

:25:06. > :25:13.interesting, he played with some of my apps. It is sort of like a stamp

:25:14. > :25:20.of approval. For someone who, I mean, made his way in tech, and

:25:21. > :25:24.understand how the industry works. There is a negative perception of

:25:25. > :25:32.what we are doing here, but to see him using a product, that is a huge

:25:33. > :25:37.step. A big plus. He's probably still going to meet all of these

:25:38. > :25:43.important people, but coming here shows how in the young people. That

:25:44. > :25:46.is the big part of it. The fact he understood what we were to become

:25:47. > :25:52.invalidated everything we had been doing and had planned. Coming here,

:25:53. > :25:59.and wanting to see the technology, that is a good one for me, you know.

:26:00. > :26:04.It then shows, OK, you need to recognise talent in Africa. I will

:26:05. > :26:05.be back with you in a couple of minutes'