EU Probe Slams Ireland Over Apple Tax Deals

A preliminary finding by the European Commission has found that Ireland provided potentially illegal state aid to tech giant Apple for more than 20 years.

It said it has doubts that two "sweetheart" tax deals agreed in 1991 and 2007 between Apple and Ireland are compatible with the internal market of the European Union.

In a statement, the European Commission said: "Accordingly, the commission is of the opinion that through those rulings the Irish authorities confer an advantage on Apple.

"That advantage is obtained every year and ongoing.

"At this stage, the commission has no indication that the contested measure can be considered compatible with the internal market".

Video: EU Gets Tough On Apple And Ireland

It added: "The commission's preliminary view is that the tax ruling of 1991 and of 2007 in favour of the Apple group constitute state aid."

The Irish government has already responded and said: "As this is an ongoing legal process, Ireland will not be commenting further on any individual aspects of this case."

Apple has had a base in Ireland since 1980 and has expanded in recent years, while authorities in Brussels have powers under state aid rules to impose large fines.

The commission can fine companies up to 10% of turnover and the ability to fine Ireland up to €1bn (£780m).

The inquiry found that in effect Apple ensured it had greater profitability in the areas in which their tax charge would be the most modest.

Baker Tilly senior tax partner George Bull told Sky News if the EU findings are upheld, Apple's tax liability may be recoverable from 2003 onwards.

According to reports, US-based Apple has built up an offshore cash pile of $137.7bn (£84.8bn) in Ireland.

The money cannot be repatriated to the US without being taxed, and instead the company has sought to buy back some shares held by investors.

Apple has denied any wrongdoing over tax rulings agreed with Irish officials in 1991 and 2007.

In a statement Apple said: "Apple has received no selective treatment from Irish officials over the years.

"We're subject to the same tax laws as the countless other companies who do business in Ireland.

"To continue that growth and the benefits it brings to the communities where we work and live, we believe comprehensive corporate tax reform is badly needed."

The commission is also investigating arrangements between coffee chain Starbucks and the Netherlands, and any deal between Luxembourg and car company Fiat.

On Monday, Chancellor George Osborne warned tech firms "that go to extraordinary lengths" to cut their UK tax bills will be hit with new anti-avoidance legislation.

He hinted of plans to raise "hundreds of millions" in revenue from the likes of Microsoft, Google and Twitter.

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Tesco Investigation Launched By City Watchdog

The Financial Conduct Authority has launched a "full investigation" into a Tesco accounting error, which saw the supermarket chain overstate its profit by £250m.

Tesco, which is Britain's biggest retailer, said it is co-operating fully with the watchdog.

Four senior executives of Tesco have been suspended

The chain said it would update the City on its own internal investigation into the error when its full-year results are released on 23 October.

The company commissioned accounting firm Deloitte to undertake its independent review.

Video: Tesco Investigating Profits Mistake

Four senior executives have been suspended, including UK managing director Chris Bush, pending the outcome of the probes.

Last week Tesco announced the accounting error, after it issued a profit warning in August.

It also emerged the company had not had a finance chief in place for months.

The £250m figure relates to how it logs suppliers' rebates and if they were reported in the correct accounting period.

Video: Tesco Trading Troubles Compounded

A whistleblower revealed the tactic to the company's most senior legal representative and its new chief executive Dave Lewis was alerted to the error.

He then launched the internal investigation, ahead of its third profit warning in as many months.

Mr Lewis said the four staff suspensions allowed it to carry out a "full and frank" inquiry and the decision was neither a disciplinary action nor an indication of guilt.

Although Tesco is roughly the size of Sainsbury's and Morrisons combined, it has suffered amid the rise of German discounters Aldi and Lidl, and more discerning consumer palates.

Video: Tesco's Business Culture Questioned

It was also embroiled in last year's horsemeat food contamination scandal, putting its supply chain under scrutiny.

In a strategic move to bolster its position in case of a credit rating agency downgrade Tesco has secured a £2.5bn 'warchest', as first revealed by Sky News City Editor Mark Kleinman.

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Sainsbury's Sales Down 2.8% In Three Months

Sainsbury's has seen its sales drop in the last quarter, as it warns the bitter supermarket price war will "persist".

It said like-for-like sales, excluding fuel and VAT, dropped by 2.8% in the three months to 27 September.

Including fuel, the drop was 4.1%.

The company said changing shopping habits, smaller purchases, and deflationary pressure on prices have all added to the fall in sales.

British supermarkets are under pressure from the German discounters

Chief executive Mike Coupe said: "The market remains dynamic and fiercely competitive.

"The long-running trend of more frequent, convenient shopping has accelerated, resulting in smaller basket sizes.

"An increase in price investment and short-term competitor promotional activity, combined with favourable commodity markets, has resulted in deflation in many areas of our food business."

The company has seen growth in its smaller convenience stores rise at 17%, as urban shoppers move away from large weekly purchases at large stores.

It said the group opened 23 new convenience stores in the quarter and refurbished another 10 stores.

It will also open five new stores in conjunction with Danish discounter Netto, in a strategy to go head-to-head with German discounters Aldi and Lidl.

It now expects food price deflation and the bitter price war among rivals to continue "for the foreseeable future".

Mr Coupe added the supermarket would provide a detailed update when its interim results are announced on 12 November.

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Vauxhall Recall: Warning Over Corsa Steering

Recalls By Carmakers On The Rise

Updated: 11:25am UK, Saturday 27 September 2014

The recall by Vauxhall of around 3,000 vehicles because of a steering problem is just the latest in a series of headaches for motor manufacturers.

Last year, manufacturers recalled 868,605 vehicles to dealerships to fix potentially life-threatening defects - up from 665,000 in 2009.

However, the increase does not necessarily mean cars are more prone to faults, but that firms are acting more quickly to deal with problems - anxious to avoid damage to their brands.

Here are just some of the major recalls seen in the past year or so.

:: Only this week US car giant Ford put out a recall on around 850,000 cars in the US over a "potential issue" with airbags.

:: Ferrari has recalled more than 3,000 of its £200,000 luxury sports cars because a fault with a latch means anyone trapped in the boot would not be able to get out.

:: General Motors recalled more than 220,000 cars to correct a brake defect that could increase the risk of fire.

:: Earlier this year, Toyota issued a recall affecting 6.4 million vehicles worldwide and 35,124 in the UK. The carmaker has learned the lessons from the past when it suffered a backlash, after being seen to have responded too slowly to a fault that caused models to accelerate without warning in 2010.

:: Aston Martin recalled 17,590 sports cars in February due to a problem with the accelerator pedal.

:: In 2013, Mercedes recalled 2,540 M-class SUV models in the UK when it discovered a particular floor mat could impede the accelerator pedal.

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Budget Chain Aldi Sees Profit Boom In Britain

Aldi And Lidl 'Victors In Supermarket War'

Updated: 2:18pm UK, Tuesday 29 July 2014

Discounters Aldi and Lidl have seen their market share surge as Britain's four biggest outlets suffer in the ongoing bitter supermarket war.

Research firm Kantar Worldpanel said in the three months to June 20, both of the German-based retailers saw significant growth compared to the same period last year.

It said Aldi's share rose from 3.7% to 4.8%, while Lidl expanded from 3.1% to 3.6%.

Meanwhile, supermarket giant Tesco saw its share of the sector fall from 30.3% last year to 28.9% in the period ending in July.

Asda, Britain's second biggest chain, remained flat at 17%, while Sainsbury's also remained static at 16.6%.

Struggling supermarket Morrisons was the second biggest faller out of the major retailers, seeing its share fall from 11.5% last year to 11% this year.

Both Tesco and Morrisons recorded sales losses of 3.8% compared to the same period last year, researchers said.

Kantar Worldpanel director Edward Garner said: "Aldi's 32% growth rate has lifted its market share to 4.8%, and this is a new record for the retailer and means it has nearly caught up with Waitrose on 4.9%.

"Similarly, Lidl sales have grown by nearly 20% and it has held onto its record share of 3.6%."

Britain's big outlets have become increasingly embroiled in a price war during 2014 that has harmed their margins.

They have also invested heavily in convenience store and online delivery services.

The hard discounters have avoided entering the online delivery sub-sector, which is seen by analysts as costing the majors more than £100m a year.

Grocery price inflation has also fallen for the 10th consecutive periods and now stands at 0.4%.

Price slashing and deflation in staple items like milk, vegetables and bread have driven food price inflation down to its lowest level since late 2006, when the research first started.
 

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Chancellor To Abolish 'Death Tax' On Pensions

UKIP Defections: PM Did Too Little, Too Late

Updated: 10:09pm UK, Saturday 27 September 2014

By Anushka Asthana, Political Correspondent

During the 2010 election, I travelled to Rochester and Strood in Kent, where I met the Tory candidate Mark Reckless.

One thing that struck me as I watched him take to the doorsteps, was the number of constituents raising the issue of immigration.

One awkward incident involved an elderly man ranting about why he supported the far-right National Front. Mr Reckless backed off, embarrassed.

He certainly didn't share those extreme views. But it was clear then that he was a politician who was worried about immigration and angry about Europe.

I remember another conversation with Mr Reckless last year in the Commons.

Tory backbenchers were nervous about immigration, he told me. They felt David Cameron hadn't done enough, and the looming prospect of transitional controls lifted on Bulgarians and Romanians was of particular concern. 

Things could get tetchy in January 2015, he said.

Mr Cameron knew about these misgivings among his MPs and tried to act on them.

Late last year he unveiled a toughening up in the rhetoric on immigration – bringing in new rules to crack down on the access that new EU migrants would get to benefits. Then came the pledge of an EU referendum.

The hope was to appease the concerns of people like Mr Reckless, and you might have thought it was working.

After all, following the defection to UKIP of Douglas Carswell many asked the MP if he would be next. He insisted not.

When I texted Tracey Crouch, a neighbouring MP in Kent, about his decision to leave the Tories, she replied: "Nothing I can say right now would be becoming of a lady. I'm so angry. He looked me in the eye and promised he wasn't going to defect."

Others pointed out that he was openly supportive of the Conservatives as recently as yesterday.

Then he tweeted: "Good to lead coach for Team2015 campaigning in Birmingham Northfield on Sunday + will be followed by our Clacton action next Thursday."

That is why Tory sources say they are "surprised". Other MPs told me they felt "let down", "frustrated" and "fed up".

"Another battle when we should be fighting Labour," said one.

Others argued that although he had behaved irresponsibly, giving a leg-up to Ed Miliband, that a number of backbenchers were angry with the party's position on Europe.

They believe that Mr Cameron hasn't done enough to prove he can loosen Britain's ties to the EU. They want to see the issue addressed at his conference speech this week.

The problem for men like Mr Reckless is they don't share the Prime Minister's views on Europe.

Mr Cameron wants to reform the UK's relationship with the continent and then – ideally – campaign for us to stay IN.

And that is the sticking point with Mr Reckless.

The former Tory MP was clear today that he believes in an independent Britain, and wants to follow the Scotland Yes campaign with what he said was a positive, patriotic message for voters.

He wants OUT – and UKIP is the only party that is fully with him.

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First-Time Buyers To Get 20% Off Under Tories

Young first-time buyers will get a 20% discount on their new homes, under plans announced by the Conservatives.

David Cameron has set out plans to build tens of thousands of new homes on commercial "brownfield" land, reserved for first-time buyers, under 40.

As Tories begin gathering in Birmingham for their annual conference, the PM said a Conservative government would implement the plan if they were re-elected in 2015.

Homes built under the proposed Help to Buy: Starter Homes scheme would be exempt from a range of taxes, lowering their price by 20%, say Tories.

First-time buyers have been priced out of many areas, especially in London

In an interview with The Sun, Mr Cameron said the programme would deliver 100,000 starter homes over the lifetime of the next parliament.

"We want to help more young people achieve the dream of home ownership so today as part of our long-term economic plan I can pledge we will build 100,000 homes for young, first-time buyers," he said.

"We will make these starter homes 20% cheaper by exempting them from a raft of taxes and by using brownfield land.

"I don't want to see young people locked out of home ownership.

David Cameron says the new homes would be exempt from some taxes

"We've already started to tackle the problem with Help to Buy mortgages - and these new plans will help tens of thousands more people to buy their first home."

The Conservatives said the homes would be built on brownfield land already zoned for development but no longer needed for industrial or commercial use.

Such land is not normally made available for housebuilding and can be bought more cheaply than other land, and the savings will be passed on to the buyer.

Public sector land which is surplus to requirements will also be brought into the scheme.

At the same time, the Conservatives said that the properties would be exempt from most of the taxes imposed on new homes.

These taxes include the social housing requirement and the community infrastructure levy.

Some future regulations such as the zero carbon homes standard will also not apply to properties built under the scheme.

The announcement is intended to set the tone for the party's final annual conference before the country goes to the polls next May.

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Vast Food: Restaurants Urged To Cut Portions

By Poppy Trowbridge, Consumer Affairs Correspondent

Restaurants should cut portion sizes or charge more for large servings to help reduce food waste and fight obesity, experts have said.

The Chartered Institute of Environmental Health said the measures would also mean significant savings for food outlets and catering firms.

Jenny Morris, policy officer at the professional body for environmental and public health, told Sky News: "Many of us eat too much.

"The portions we expect to see are too big.

"It seems obvious to me, that an easy solution is to only produce the amount of food that is going to be consumed or that is needed."

She also added that there was some rationale for restaurants to charge a premium for large servings, in a bid to combat rising obesity rates.

Campaigns have sought to encourage consumers to cut back on food waste for years, but the CIEH says the industry itself must drive the changes.

Anthony Worrall Thompson says 97p per customer is lost in food waste

"I think that it is business that needs to lead on it because it is business that is in control," Ms Morris said.

"It hasn't always been the focus up until now."

While big business has begun to measure appropriate portion sizes and reduce food waste, the majority of Britain's food businesses are missing out.

Ms Morris said small and medium-sized restaurants could save hundreds of pounds a week by simply reducing how much meat and produce is wasted.

Celebrity chef Anthony Worrall Thompson estimates that 97p per customer is lost in food waste.

"When you add that amongst the thousands of customers we have every year, it's a huge amount of money," he said.

Recycling body WRAP estimates the cost of food being wasted in the UK from the hospitality and food service sector will reach £3bn per year by 2016.

Ms Morris said: "We are in a very privileged situation at the moment where food is relatively cheap. It won't be in the future.

"It doesn't matter whether a business is small or large, it can save a lot of money." 

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Vauxhall Recall: Warning Over Corsa Steering

Recalls By Carmakers On The Rise

Updated: 11:25am UK, Saturday 27 September 2014

The recall by Vauxhall of around 3,000 vehicles because of a steering problem is just the latest in a series of headaches for motor manufacturers.

Last year, manufacturers recalled 868,605 vehicles to dealerships to fix potentially life-threatening defects - up from 665,000 in 2009.

However, the increase does not necessarily mean cars are more prone to faults, but that firms are acting more quickly to deal with problems - anxious to avoid damage to their brands.

Here are just some of the major recalls seen in the past year or so.

:: Only this week US car giant Ford put out a recall on around 850,000 cars in the US over a "potential issue" with airbags.

:: Ferrari has recalled more than 3,000 of its £200,000 luxury sports cars because a fault with a latch means anyone trapped in the boot would not be able to get out.

:: General Motors recalled more than 220,000 cars to correct a brake defect that could increase the risk of fire.

:: Earlier this year, Toyota issued a recall affecting 6.4 million vehicles worldwide and 35,124 in the UK. The carmaker has learned the lessons from the past when it suffered a backlash, after being seen to have responded too slowly to a fault that caused models to accelerate without warning in 2010.

:: Aston Martin recalled 17,590 sports cars in February due to a problem with the accelerator pedal.

:: In 2013, Mercedes recalled 2,540 M-class SUV models in the UK when it discovered a particular floor mat could impede the accelerator pedal.

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First-Time Buyers To Get 20% Off Under Tories

Young first-time buyers will get a 20% discount on their new homes, under plans announced by the Conservatives.

David Cameron has set out plans to build tens of thousands of new homes on commercial "brownfield" land, reserved for first-time buyers, under 40.

As Tories begin gathering in Birmingham for their annual conference, the PM said a Conservative government would implement the plan if they were re-elected in 2015.

Homes built under the proposed Help to Buy: Starter Homes scheme would be exempt from a range of taxes, lowering their price by 20%, say Tories.

First-time buyers have been priced out of many areas, especially in London

In an interview with The Sun, Mr Cameron said the programme would deliver 100,000 starter homes over the lifetime of the next parliament.

"We want to help more young people achieve the dream of home ownership so today as part of our long-term economic plan I can pledge we will build 100,000 homes for young, first-time buyers," he said.

"We will make these starter homes 20% cheaper by exempting them from a raft of taxes and by using brownfield land.

"I don't want to see young people locked out of home ownership.

David Cameron says the new homes would be exempt from some taxes

"We've already started to tackle the problem with Help to Buy mortgages - and these new plans will help tens of thousands more people to buy their first home."

The Conservatives said the homes would be built on brownfield land already zoned for development but no longer needed for industrial or commercial use.

Such land is not normally made available for housebuilding and can be bought more cheaply than other land, and the savings will be passed on to the buyer.

Public sector land which is surplus to requirements will also be brought into the scheme.

At the same time, the Conservatives said that the properties would be exempt from most of the taxes imposed on new homes.

These taxes include the social housing requirement and the community infrastructure levy.

Some future regulations such as the zero carbon homes standard will also not apply to properties built under the scheme.

The announcement is intended to set the tone for the party's final annual conference before the country goes to the polls next May.

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