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Facebook may face extra $5 bn tax bill

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facebook logoLondon : Social media giant Facebook may be liable to pay $3 to $5 billion in extra tax after AUS Internal Revenue Service (IRS) investigated the way the company transferred assets to Ireland.

IRS has been exploring how the tech company transferred assets to Ireland and whether it deliberately tried to minimise the tax it paid in the US, a report in the Guardian said.

“The IRS issued the firm with a ‘statutory notice of deficiency’ on July 27, the company said in its quarterly financial filing, noting that it could have a ‘material adverse impact’ on its finances,” the report noted.

Facebook broke out the possible loss in its earnings report, as a minimum of $3 billion and maximum of $5 billion. It would also be liable for interest lost, though any additional penalties are not known, the report added.

A Facebook spokesperson on Friday defended by saying that “Facebook complies with all applicable rules and regulations in the countries where we operate.”

The investigating agency had been monitoring Facebook since 2013 over assets it had transferred in 2010 to its base in Dublin.

Ireland is known for its corporation-friendly tax structures; it has a corporate tax rate of 12.5 per cent, compared to the US rate of 35 per cent and 21 per cent in Britain.

The matter came to the fore when the IRS filed a lawsuit in San Francisco on July 6, suing Facebook over access to records related to the transfer.

The IRS has stated that Facebook has failed to attend seven appointments at the IRS office in San Jose, 19 miles from Facebook’s headquarters in Menlo Park.

 

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Lockdowns in China Force Urban Communities to Defy Censorship and Vent Frustration Online

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Anyip Mobile Proxies

Shanghai’s rich middle class is leading a wave of online dissent over the strict and prolonged lockdowns imposed in various parts of the country. Chinese internet censorship is struggling as patience is wearing thin in many urban centers, coming up with creative forms of online protests.

Social Media Posts Revealing Lockdown Tension in Shanghai

Drawn-out lockdowns are nothing new in China as authorities insist with the nation’s zero-Covid policy since the start of the pandemic. Currently over This time around, however, metropolitan areas like Shanghai are increasingly difficult to keep quiet, given that its more than 25 million residents have seen weeks of total isolation along with food shortages and many other service interruptions.

Dozens of towns and reportedly over 300 million Chinese citizens have been affected by lockdowns of different severity. As expected, urban netizens have been most outspoken over their difficulties by finding creative ways to get around state censorship and bans placed on topics, news comments and spontaneous campaigns.

Shanghai residents have been using mobile proxies and hijacking seemingly unrelated hashtags to talk about healthcare issues, delivery failures and the overall severity of their situation. The “positive energy” that the Chinese government wants to transmit during the recent prolonged series of lockdowns does not come naturally to those counting food supplies and online censors are working hard to filter words, trending topics and undesired social media sharing.

WeChat groups and message threads are under constant monitoring. Posts questioning the zero-Covid approach have been quickly deleted, including by leading Chinese health experts like Dr. Zhong Nanshan. Video footage is soon censored and protests and investigations are quickly made to disappear.

Where this has not worked, officials have exposed banners with warnings and outright threats like “watch your own mouth or face punishment”, while drones have been patrolling the city skies. Yet, if anything, this has led to further tensions and unspoken confrontation with Shanghai’s educated and affluent middle class.

Creative Online Solutions Harnessing Civic Energy

Announcements by Chinese social media that they would be publishing the IP addresses of users who “spread rumors” have not helped either. Tech industry research has shown that much of Asia’s tech-savvy population has a habit of using mobile proxies and other privacy tools, quickly finding workarounds to browse the internet freely and talk to the world about the hottest topics.

The sheer volume of forbidden posts is already a challenge for the very censorship system, experts explain. Unable to track all trending hashtags, state workers overlook topics that speak about the US, Ukraine or other popular news. Linking human rights elsewhere to their situation, Chinese online dissidents establish their informal channels and “hijack” the conversation to share personal or publicly relevant information about the Covid suppression in their town.

Sarcastic and satirical posts still dominate. Others hope to evade the censors by replacing words from famous poems or the national anthem. One thing is certain – social media, when harnessed with the right creativity, has proven its ability to mount pressure on the government in even some of the most strictly controlled tech environments like China.

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