Month: August 2020

Tax officials in Africa estimate that government revenues will drop between 10 and 30 percent in 2020 as a result of the economic fallout stemming from the coronavirus pandemic. But while businesses in the hospitality, construction and retail sectors have suffered, digital companies have boomed as more people stay home and conduct their activities online.This is driving talks in Africa about how to make sure big multinationals such as Google and Facebook, which do not always have a physical presence in the countries where they make a profit, can be taxed.Logan Wort, executive secretary of the African Tax Administration Forum, was among government officials, members of the Organization for Economic Co-operation and Development (OECD), and African Union who gathered virtually Wednesday to address the issue.FILE – A worker sorts online orders before they are delivered to customers from a Checkers store, amid a nationwide coronavirus lockdown, in Johannesburg, South Africa, July 14, 2020.Wort said that due to the coronavirus pandemic, businesses in the sectors of e-commerce, online transactions and other digital services have experienced a boom. The e-commerce sector alone is projected to increase its revenues by 41 percent, according to the African Tax Administration Forum.  “Question: Are we collecting better on these transactions? Are we aware of these transactions? Are the businesses doing these transactions, do they have a physical presence in our countries and, if not, do our regulations provide for them to be taxed?” Wort asked.Talks about how to roll out harmonized laws to allocate tax rights in cross-border transactions are currently under way among members of the OECD. This is because governments across the world are concerned there is a misalignment between the location where profits are reported and the location where economic activities occur.Victor Harison, the commissioner of economic affairs for the African Union, said the tax-to-GDP ratio in 26 African countries reporting to the AU is just 17.2 percent, compared to 32.2 percent in developed countries that belong to the OECD.He called on more African countries to participate in talks on a global level about how to tax multinational companies so the profits from their wealth can be shared more equitably. “So far, only 25 African countries are part of this initiative, which is a cause of concern for the African Union,” Harison said. “Corporate income tax is a substantial source of taxation in Africa, amounting to more than 25 percent of total revenues in most countries.”  FILE – A schoolgirl receives online lessons in the district of Port Bouet in Abidjan, Ivory Coast, April 21, 2020.David Masondo, deputy minister of finance of South Africa, said Africa needs a central body within the African Union to speak with one voice on tax policies. “These unified policies should include or focus on improving the allocation of tax rights in cross-border transactions, including the digital transactions of multinational enterprises,” Masondo said.The U.S. has pushed for its companies to be able to opt in and out of the global rules on taxing multinational companies, as long as they adhere to certain basic principles.Annet Oguttu, a member of the high-level panel on financial accountability and transparency, said while Europe was at loggerheads with the U.S. over the matter, African countries also have a role to play in the discussion. “The focus of the discussion seems to be about the U.S. protecting its multinationals and the European countries trying to get the best out of it,” she said. “The question then is, where do we stand as developing countries in Africa? Perhaps coming together under the platform of ATAF could bring together a more united front that could be able to address these issues.” Talks at a global level are due to reconvene in October, now that proposals about how to tax digital multinationals have been shared among governments. 
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U.S. forces are taking an aggressive approach in cyberspace ahead of November’s presidential election, aiming to wipe out threats from foreign countries and other actors before they have a chance to disrupt voting or other critical, election-related systems. “Cyber Command needs to do more than prepare for a crisis in the future; it must compete with adversaries today,” Gen. Paul Nakasone, head of U.S. Central Command, and senior adviser Michael Sulmeyer said in a piece published Tuesday in FILE – National Security Agency Director Gen. Paul Nakasone testifies before the Senate Intelligence Committee on Capitol Hill in Washington, Jan. 29, 2019.“U.S. forces must compete with adversaries on a recurring basis, making it far more difficult for them to advance their goals over time,” the officials wrote, outlining the strategy for the public with the presidential election now less than three months away. “Additionally, cyber effects operations allow Cyber Command to disrupt and degrade the capabilities our adversaries use to conduct attacks.” Nakasone and Sulmeyer say the more proactive approach to protecting the upcoming U.S. election began, in part, in October 2019, after a team from Cyber Command traveled to Podgorica, Montenegro, to investigate attempts, possibly by Russia, to infiltrate that country’s networks. In the process, the Cyber Command team “saw an opportunity to improve American cyber defenses ahead of the 2020 election,” they said in the article. Nakasone and Sulmeyer also say they are building on efforts from 2018, when Cyber Command joined with the National Security Agency to form the Russia Small Group (RSG) to help protect the congressional mid-term elections, shoring up vulnerabilities within the U.S. election infrastructure, sounding alarms about Russian disinformation campaigns, and hunting for malware. “Thanks to these and other efforts, the United States disrupted a concerted effort to undermine the midterm elections,” they wrote. “Together with its partners, Cyber Command is doing all of this and more for the 2020 elections.” Managing riskCritics point out that the more aggressive approach to cyber defense carries risks. Namely, they worry that whether due to a miscalculation or an accident, a confrontation in cyberspace could escalate and lead to all-out war. But U.S. Cyber Command officials argue the risk is manageable and that the “hunt forward” strategy allows them to impose necessary costs on adversaries like Russia, China, Iran and North Korea. “Inaction poses its own risks: that Chinese espionage, Russian intimidation, Iranian coercion, North Korean burglary, and terrorist propaganda will continue unabated,” Nakasone and Sulmeyer wrote in the magazine. “So, the question is how, not whether, to act.” Determining whether Cyber Command’s “hunt forward” approach is paying off may be difficult. U.S. officials charged with protecting key voting-related systems said at least so far, there are no signs of any country-directed attacks on the United States. FILE – Senior Cybersecurity Adviser at the Department of Homeland Security Matthew Masterson testifies on Capitol Hill in Washington, Oct. 22, 2019.“We are not and have not seen specific targeting of those election systems that has been attributable to nation-state actors at this time,” Matthew Masterson, senior cybersecurity adviser for the Cybersecurity and Infrastructure Security Agency (CISA), told the Atlantic Council on Tuesday. “(We) aren’t seeing a broad campaign in that way,” he said, adding, “We’re cognizant that’s in the playbook.” Evidence of meddlingEarlier this month, U.S. counterintelligence officials warned they have evidence that Russia, China and Iran are trying to meddle with the November election. “We assess that Russia is using a range of measures to primarily denigrate former Vice President (Joe) Biden and what it sees as an anti-Russia ‘establishment,’” National Counterintelligence and Security Center Director William Evanina said in a statement.  “Some Kremlin-linked actors are also seeking to boost President (Donald) Trump’s candidacy on social media and Russian television,” he added. China and Iran, according to Evanina, appear to prefer a Biden presidency.  Official: US Adversaries Taking Sides, Wielding Influence Ahead of Election  US counterintelligence officials, splitting with President Trump, warn Russian-linked actors are pulling for his reelection as China and Iran aim to put Democrat Joe Biden in the White HouseBut for now, descriptions by counterintelligence officials portray such efforts by Russia, as well as by China and Iran, more as disinformation campaigns as opposed to attacks on computer systems and networks that could play a key role in collecting and tabulating votes. Most of the activity on that front, for the time being, appears to be coming from criminal actors with no definitive ties to Russia, China or other U.S. adversaries. “We do see regular scanning, regular probing of election infrastructure as a whole, what you’d expect to see as you run IT systems,” said CISA’s Masterson, citing the use of ransomware as a top concern.  “What we see is an ability to shut down county (local government) networks as a whole, which obviously has an impact on the election office to operate,” he said. Still, U.S. election security officials are optimistic that measures put in place since 2016 will be enough to ward off any attacks. “I’ve said it before, and I’ll say it again: The 2020 election will be the most secure election in modern history,” CISA Director Chris Krebs told reporters last month. US Officials Promising ‘Most Secure Election in Modern History’The officials say while the November presidential election will not be risk free, defense and back-up systems should guarantee a free and fair result 
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While most parents are stressed about kids and remote online learning, some experts say expect more of that in the future, and that that may be a good thing. Deana Mitchell reports.
Camera, Producer: Deana Mitchell
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While most parents are stressed about kids and remote online learning, some experts say expect more of that in the future, and that that may be a good thing. Deana Mitchell reports.
Camera, Producer: Deana Mitchell
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