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The global corporate tax rate: Crypto savior or killer?

The newly proposed global tax rules will drastically influence all international companies, with crypto being a target as well.
At a meeting in London earlier this month, the finance ministers from the G7 — the United States, Japan,…

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The newly proposed global tax rules will drastically influence all international companies, with crypto being a target as well.

At a meeting in London earlier this month, the finance ministers from the G7 — the United States, Japan, Britain, Germany, France, Italy and Canada — unanimously agreed to begin creating the framework for a global corporate tax rate. 

The framework laid out a “two pillar” principle. The first pillar ensures that companies that make a 10% profit margin would be subject to the tax rate. The second pillar ensures that countries will charge a 15% minimum tax rate. Under all of this, the new rules will focus on where the profit was made and not where the company is based — the idea being that companies are discouraged from moving money around the globe, or providing services in one country from another that has a cheaper tax rate.

Does legal mean moral?

The concept of a global corporate tax rate is nothing new. With companies such as Google, Amazon, Facebook and Apple making billions of dollars in revenue and paying little to no tax, regulators and governing bodies have attempted to close the loopholes used by these large multinationals.

The practice of making money in one country and then moving it to another in order to pay less taxes or avoid them all together is perfectly legal, mostly. Although, in practice, it can raise some moral questions. This practice has only now truly come under the spotlight with the rise in international and digital businesses moving more funds around the globe than ever before. Apple, for example, holds more cash in reserves than the entire gross domestic product (GDP) of many nations. Yet, in most countries, it pays less tax than the average domestic company.

This closure of loopholes may signal a good move for domestic governments. The United Kingdom, for example, stands to gain an additional 14.7 billion pounds for their economy over the next ten years — a massive help, given the large impact of the global COVID-19 pandemic.

But what about cryptocurrencies?

With the inevitable introduction of these new pillars, we have to ask ourselves: How could this impact crypto companies?

Crypto, at its core, is truly international. It also moves money around the globe and targets an international audience. As a consequence, purely by its operation, it falls under what many believe will be the new rules relating to the taxation of international companies. (Note: “International companies” literally means companies that have multiple locations, or do business, in multiple countries.)

The implementation of these new rules is yet to be confirmed, and as to exactly how this will look, many are still unsure. The feeling is that crypto companies who operate internationally will have to do one of two things: Either be prepared to pay a corporate domestic rate of 15% all over the globe, or move their physical location to a truly international location. To be clear, this would have to be more than simply a registered office.

In reality, we would see the death of companies based out of locations such as the Seychelles or British Virgin Islands with real offices in New York (you know who they are). Likewise, the “service company” based in the United States with the “head company” based offshore may also be subject to some changing around. In the future, it is possible we will see companies that will be purely based out of their location, such as the British Virgin Islands, with the team physically conducting business there.

Not so universal after all

The other side of this is that while the G7 makes up a huge amount of the global GDP, there are still massive players such as India, China and Russia which are not included in these new rules. They have not even signed up for them. And it’s hard to tell whether they will even adopt them at all. Likewise, countries such as Singapore and Ukraine have excellent tax rules for companies simply looking to do business there with minimal presence.

The right to set your own tax rules is a massive sovereign right. Countries will not want to quickly give that up — especially countries that heavily rely on the income from corporate formations and companies doing business within their otherwise unheard of shores. Additionally, make no mistake that this whole process has been driven by the U.S. The U.S. knows that it is losing money by allowing companies to move funds away from the U.S. in a corporate setting. This is something they have been desperate to stop, with ever more cumbersome tax laws for individuals and corporations. Countries like Russia will not want to seem like they are being pushed around by the U.S.

For now, the best thing that all crypto companies can do is watch the development and implementation of these taxes. If, upon deployment of the new rules, the taxes are massively overbearing, many may wish to look at new locations and physical offices — especially those who make more than 10% profit and, more importantly, those who conduct business in one location with good taxes, but have their physical offices in another location. Nobody needs to panic now. However, their five or ten year plan may want to see some adjustments just in case the worst happens.

Finally, it should always be remembered that tax evasion is illegal and should not be done. Tax avoidance, on the other hand, is just smart planning and always worth spending time and money to implement properly.

This article is for general information purposes and is not intended to be and should not be taken as legal advice.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Cal Evans is an international technology lawyer from London who studied financial markets at Yale University and has experience working with some of the best-known companies in Silicon Valley. In 2016, Cal left a top 10 California law firm to start Gresham International, a legal service and compliance firm specializing in the technology sector that now has offices in the U.S. and the United Kingdom.

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Stocks

VIDEO — Frank Holmes: Bullish on Gold, “Perfect Storm of Inflation” Ahead

"I think it’s quite easy this year (for gold) to take out last year’s high. It’s very easy to do that," said Frank Holmes of US Global Investors.
The post VIDEO — Frank Holmes: Bullish on Gold, “Perfect Storm of Inflation” Ahead appeared first on…

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The gold price reached a new all-time high nearly 12 months ago, and as the summer months set in again investors are wondering whether it may do the same thing this year. 

Speaking to the Investing News Network, Frank Holmes, CEO and chief investment officer of US Global Investors (NASDAQ:GROW), said he thinks it’s possible for the yellow metal to set a new record in 2021.

“I think it’s quite easy this year to take out last year’s high. It’s very easy to do that,” he said.

 

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“And once people start believing that the Consumer Price Index (CPI) number is (an) inaccurate forecast of inflation — that there have to be other factors, which has happened in previous cycles — then all of a sudden gold will get a brand new element to it.”

Holmes explained that the CPI is understated because it doesn’t track food and energy. In his view, rising inflation is “baked in” for the next couple of years given the amount of pent-up demand related to COVID-19, as well as continued money-printing efforts around the world.

The US Federal Reserve remains seemingly unconcerned about inflation, and has repeatedly described inflationary activity as “transitory.” When asked if he expects any meaningful changes at this week’s Fed meeting, which runs from Tuesday (June 15) to Wednesday (June 16), Homes said he does not.

“I don’t see any changes. The stock market is acting still pretty resilient,” he explained. “I think it’s full throttle of printing money around the world — we’re talking about trillions and trillions of dollars. And you still have this pent-up demand, so therefore you’re going to have the perfect storm of inflation, and if you can borrow inexpensively you’ll be ahead of the curve.”

Holme also has a positive outlook on bitcoin, and he noted that enthusiasm and acceptance for the cryptocurrency are on the rise. However, he still believes investors should allocate a larger amount of their portfolios to the yellow metal, which he views as more stable.

“(Bitcoin is) very volatile; it’s much more volatile than gold — it’s six times more volatile. So I’d advocate 10 percent into gold and gold-related quality stocks and 2 percent into crypto.”

Watch the interview above for more from Holmes on gold and bitcoin, as well as the potential he sees for the US Global Jets ETF (ARCA:JETS).

Don’t forget to follow us @INN_Resource for real-time updates! 

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

 

Are You Investing In Gold Yet?

   
What Happened To Gold In Q1? Which Gold Stocks To Watch In 2021?
Exclusive Information You Need To Make An Informed Decision.
 

The post VIDEO — Frank Holmes: Bullish on Gold, “Perfect Storm of Inflation” Ahead appeared first on Investing News Network.

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Government

Pfizer, Moderna Jabs Cause Heart Inflammation In Some Young Men, CDC Finds

Pfizer, Moderna Jabs Cause Heart Inflammation In Some Young Men, CDC Finds

As American public health officials and political leaders struggle to entice more young adults to accept the COVID-19 vaccine, researchers have just discovered a distu

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Pfizer, Moderna Jabs Cause Heart Inflammation In Some Young Men, CDC Finds

As American public health officials and political leaders struggle to entice more young adults to accept the COVID-19 vaccine, researchers have just discovered a disturbing side effect of the Pfizer and Moderna jabs, which rely on new mRNA technology to program the body to fight the virus. While the adenovirus-vector jabs like the AstraZeneca shot have been tied to dozens of fatal cerebral blood clots, the mRNA vaccines have now been found to cause heart inflammation in some patients.

We first caught wind of this late last week when the CDC announced it would hold an "emergency meeting" about the rising number of heart inflammation cases in the US VAERs database.

According to Reuters, the CDC started investigating after Israel's Health Ministry reported that it had discovered a likely link to the condition in young men who received the Pfizer jab. Although some patients were hospitalized, most recovered on their own and (most importantly) nobody died.

The CDC told Reuters that it's still assessing the risk from the condition and has not yet concluded that there was a causal relationship between the vaccines and cases of myocarditis or pericarditis. Still, there are some lingering signs that the potential side effects from the vaccines is higher for young people. More than 50% of the cases reported to the US Vaccine Adverse Event Reporting System - better known as VAERS - after people had received their second dose of the jab were in people between the ages of 12 and 24, the CDC said. Those age groups accounted for under 9% of doses administered.

"We clearly have an imbalance there," said Dr. Tom Shimabukuro, deputy director of the CDC's Immunization Safety Office, during a presentation to an advisory committee to the agency on Thursday. The bulk of these cases have emerged within a week of vaccination. Shimabukuro added that doctors saw a "preponderance" of young white men. This contrasts with the AstraZeneca brain clots, which overwhelmingly afflicted women. Just under 80% of all of these cases were found in men.

Scientists knew something was wrong because, according to VAERS, there were 283 observed cases of heart inflammation after the second vaccine dose in patients aged 16 to 24. That's compared with an expectations of 10-to-102 cases tally for that age group based on demographic data.

Another database, the Vaccine Safety Datalink, also showed a jump in incidents of heart inflammation in younger men after their second shot when compared to the rate seen after jab 1.

Meanwhile, Pfizer said it supports the CDC's assessment of the heart inflammation cases, noting that "the number of reports is small given the number of doses administered." Already 130MM Americans have already received both of the Pfizer, or both of the Moderna, jabs. Moderna spokespeople cautioned that consumers shouldn't jump to conclusions before scientists have had time to further study this issue. At this point, health authorities officially consider both vaccines to be "safe" for public use. Moderna also claimed that researchers hadn't established a "causal" relationship between the jabs and the heart complications.

OF course, it's just the latest reminder of the drawbacks when authorities take short cuts to approve vaccines.

Tyler Durden Tue, 06/15/2021 - 13:39

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Spread & Containment

New AI model helps understand virus spread from animals to humans

Credit: Daniel Bojar A new model that applies artificial intelligence to carbohydrates improves the understanding of the infection process and could help predict which viruses are likely to spread from animals to humans. This is reported in a recent study

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Credit: Daniel Bojar

A new model that applies artificial intelligence to carbohydrates improves the understanding of the infection process and could help predict which viruses are likely to spread from animals to humans. This is reported in a recent study led by researchers at the University of Gothenburg.

Carbohydrates participate in nearly all biological processes – yet they are still not well understood. Referred to as glycans, these carbohydrates are crucial to making our body work the way it is supposed to. However, with a frightening frequency, they are also involved when our body does not work as intended. Nearly all viruses use glycans as their first contact with our cells in the process of infection, including our current menace SARS-CoV-2, causing the COVID-19 pandemic.

A research group led by Daniel Bojar, assistant professor at the University of Gothenburg, has now developed an artificial intelligence-based model to analyze glycans with an unprecedented level of accuracy. The model improves the understanding of the infection process by making it possible to predict new virus-glycan interactions, for example between glycans and influenza viruses or rotaviruses: a common cause for viral infections in infants.

As a result, the model can also lead to a better understanding of zoonotic diseases, where viruses spread from animals to humans.

“With the emergence of SARS-CoV-2, we have seen the potentially devastating consequences of viruses jumping from animals to humans. Our model can now be used to predict which viruses are particularly close to “jumping over”. We can analyze this by seeing how many mutations would be necessary for the viruses to recognize human glycans, which increases the risk of human infection. Also, the model helps us predict which parts of the human body are likely targeted by a potentially zoonotic virus, such as the respiratory system or the gastrointestinal tract”, says Daniel Bojar, who is the main author of the study.

In addition, the research group hopes to leverage the improved understanding of the infection process to prevent viral infection. The aim is to use the model to develop glycan-based antivirals, medicines that suppress the ability of viruses to replicate.

“Predicting virus-glycan interactions means we can now search for glycans that bind viruses better than our own glycans do, and use these “decoy” glycans as antivirals to prevent viral infection. However, further advances in glycan manufacturing are necessary, as potential antiviral glycans might include diverse sequences that are currently difficult to produce”, Daniel Bojar says.

He hopes the model will constitute a step towards including glycans in approaches to prevent and combat future pandemics, as they are currently neglected in favor of molecules that are simpler to analyze, such as DNA.

“The work of many groups in recent years has really revolutionized glycobiology and I think we are finally at the cusp of using these complex biomolecules for medical purposes. Exciting times are ahead,” says Daniel Bojar.

###

Title: Using Graph Convolutional Neural Networks to Learn a Representation for Glycans

Publication link: https://www.cell.com/cell-reports/fulltext/S2211-1247(21)00616-1

The researchers have developed graph neural networks for the analysis of glycans. This artificial intelligence technique views a glycan as a graph and learns sequence properties that can be used to predict glycan functions and interactions. The findings have been published in Cell Reports.

Contact:

Daniel Bojar, assistant professor at the Wallenberg Centre for Molecular and Translational Medicine and the Department of Chemistry and Molecular
Biology, University of Gothenburg.

Phone number: +46 (0)722-099822

Email address: daniel.bojar@gu.se

Media Contact
Daniel Bojar
daniel.bojar@gu.se

Original Source

https://www.gu.se/node/58306

Related Journal Article

http://dx.doi.org/10.1016/j.celrep.2021.109251

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