Ban 'insider' tax accountants - MPs
By Anonymous on Apr 25, 2013 09:23 pm 25 April 2013 Last updated at 19:21 ET 
MPs say HMRC is fighting a losing battle against tax avoidance
UK tax authorities should be doing more to deal with tax avoidance, an inquiry by a committee of MPs has said.
The Public Accounts Committee said HM Revenue & Customs (HMRC) is involved in a "never-ending game of cat and mouse" with the big accountancy firms over the issue.
The Committee argued that the firms have an "unhealthily cosy relationship with government".
It also said UK tax law is "hopelessly complex and outdated".
The Public Accounts Committee said HMRC appears to be fighting a battle it cannot win in tackling tax avoidance.
Companies can devoted many more resources to minimising their tax liabilities than the tax authorities can to try to ensure they pay more.
Tax avoidance is the legal use of the tax framework to reduce the amount of tax payable, whereas tax evasion is against the law. Specialists in the field sometimes use the term "avoision" to refer to grey areas.
Margaret Hodge MP, Chair of the Committee of Public Accounts, said HMRC are at a distinct disadvantage.
"Our inquiry has exposed the continuing weakness of HMRC in its efforts to deal with tax avoidance," she said.
"Among those ranged against it are the big four accountancy firms, which earn £2bn each year from their tax work in the UK. They employ nearly 9,000 people just to provide tax advice to companies and wealthy individuals, much of which is aimed at minimizing the tax paid. Between them they boast 250 transfer pricing specialists whereas HMRC has only 65 people working in this area."
HMRC said that the government had announced last year that it will invest a further £77m to expand the Revenue's anti-avoidance and evasion work.
"The facts show that we are not only aggressively fighting battles against tax avoidance, but we are winning them," HMRC said in statement.
Poachers turning gamekeepers The Committee also called for an end to the system where staff from accountancy firms are seconded to the Treasury to advise on formulating tax legislation.
"When those staff return to their firms, they have the very inside knowledge and insight to be able to identify loopholes in the new legislation and advise their clients on how to take advantage of them. The poacher, turned gamekeeper for a time, returns to poaching," Mrs Hodge said.
"This is a ridiculous conflict of interest which should be banned in a code of conduct for tax advisers, as we have recommended to the Treasury and HMRC," she added.
The Institute of Chartered Accountants in England and Wales (ICAEW) pointed out that there is already international cooperation to tackle tax avoidance through the Organisation for Economic Cooperation and Development (OECD), as well as efforts in the United States where legislation will shortly be passed that will tighten up disclose regulations on foreign banks with American account holders.
"The role of accountants is to help their clients pay the right amount of tax under the law," ICAEW said.
"When it comes to strengthening tax systems, strong accountancy professions are just as vital as strong national rules and tax authorities.
"Accountants can help improve and strengthen tax rules,"
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UK concern on Syria chemical weapons
By Anonymous on Apr 26, 2013 03:27 am 26 April 2013 Last updated at 03:27 ET 
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The footage of an alleged chemical weapon attack was posted on YouTube
There is "limited but growing" evidence that the Syrian government has used chemical weapons, according to British Prime Minister David Cameron.
Mr Cameron called the evidence "very disturbing", adding it would constitute a war crime.
On Thursday, the White House said that US intelligence agencies believed "with varying degrees of confidence" that Syria had used chemical weapons.
It said the nerve agent sarin had been deployed on a "small scale".
It not give details of where or when it had been used.
The White House has warned chemical weapons use would be a "red line" for possible intervention, but says this intelligence does not represent proof.
Republicans in Congress called on Thursday for a strong US response.
The assessment was made in letters to lawmakers on Thursday signed by Miguel Rodriguez, White House director of the office of legislative affairs.
"Our intelligence community does assess, with varying degrees of confidence, that the Syrian regime has used chemical weapons on a small scale in Syria, specifically, the chemical agent sarin," one of the letters said.
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US Defence Secretary Chuck Hagel: "We cannot confirm the origins of these weapons"
But it added: "Given the stakes involved, and what we have learned from our own recent experiences, intelligence assessments alone are not sufficient - only credible and corroborated facts that provide us with some degree of certainty will guide our decision-making."
The phrase "varying degrees of confidence" is normally used to reflect differences in opinion within the intelligence community.
Speaking to reporters in Abu Dhabi on Thursday, US Defence Secretary Chuck Hagel told reporters in Abu Dhabi that the use of sarin "violates every convention of warfare".
'Red line crossed' US Secretary of State John Kerry said there had been two instances of chemical weapons use in Syria.
Continue reading the main story Already US Republicans are saying the red lines have been crossed, that the Assad regime will feel emboldened if there is not action, that the investigation must not be outsourced to the United Nations.
It is clear President Obama doesn't want to go to war in Syria. He regards it as too complex, too difficult, too uncertain.
American military action there would have a huge impact on the perception of America in the region - confirming every image he wants to change.
Yet the US is, perhaps, moving slowly and cautiously toward taking action. There is no sense of a time scale and no real certainty about what might be done.
This is very Obama: the caution, the desire to bring allies along, the reluctance to rush to judgment.
The UK Foreign Office echoed the US claims, saying it had "limited but persuasive information from various sources" of chemical weapons use in Syria.
It is understood that Britain obtained samples from inside Syria that have been tested by the Defence Science and Technology Laboratory at Porton Down, Wiltshire.
"Material from inside Syria tested positive for sarin," a Foreign Office spokesman said.
Syria is believed to possess large quantities of chemical weapons and there has been heightened concern among the international community in recent months about the safety of the stockpiles.
Although there have been numerous accusations, there has so far not been any confirmation that chemical weapons have been used during Syria's two-year-old conflict.
US President Barack Obama warned in December that Syrian President Bashar al-Assad would face "consequences" if he used such weapons.
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Senator John McCain: "It's pretty obvious that red line has been crossed"
The letters released on Thursday were sent to powerful US senators John McCain and Carl Levin.
In response, Senator McCain told reporters: "It's pretty obvious that red line has been crossed."
He recommended arming the opposition, a step the White House has been reluctant to take. He also urged taking steps to ensure that Syria's chemical weapons did not fall into the wrong hands.
"It does not mean boots on the ground," the Arizona senator added.
'No-fly zone' Democrat Dianne Feinstein, chair of the Senate Intelligence Committee, called for international action to help secure Syria's stockpile of chemical arms.
Continue reading the main story What is Sarin?
- One of a group of nerve gas agents invented by German scientists as part of Hitler's preparations for World War II
- Huge secret stockpiles built up by superpowers during Cold War
- 20 times more deadly than cyanide: A drop the size of a pin-head can kill a person
- Called "the poor man's atomic bomb" due to large number of people that can be killed by a small amount
- Kills by crippling the nervous system through blocking the action of an enzyme that removes acetylcholine - a chemical that transmits signals down the nervous system
- Can only be manufactured in a laboratory, but does not require very sophisticated equipment
- Very dangerous to manufacture. Contains four main ingredients, including phosphorus trichloride
Robert Menendez, the Democratic Chairman of the Senate Foreign Relations Committee, said options included "an internationally recognised no-fly zone, providing lethal assistance to vetted opposition forces, and sanctioning the transfer of arms to the regime".
White House officials said the US would consult with allies and seek more evidence to confirm their intelligence.
On Tuesday, a senior Israeli military official accused Syrian forces of having used the nerve agent sarin against rebels several times. People can normally recover from small doses.
Speaking at a security conference in Jerusalem, Brigadier General Itai Brun cited photographs of victims foaming at the mouth and with constricted pupils and other unspecified symptoms.
Syria's government and rebels have accused each other of using chemical weapons. A UN team is trying to enter Syria to investigate.
Sarin is a colourless and highly toxic nerve agent that can cause convulsions, paralysis and death within minutes if it is absorbed through inhalation, ingestion, or contact with skin or eyes.
According to the UN, at least 70,000 people have been killed in the Syrian conflict.
Read in browser » Fears for hundreds missing in Dhaka
By Anonymous on Apr 26, 2013 03:05 am 26 April 2013 Last updated at 00:27 ET 
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Footage shot by a fire service volunteer shows the scene inside the building
Hundreds of people are still missing after Wednesday's collapse of a building in Bangladesh which killed at least 273 people, local officials say.
More than 40 people have been rescued since Thursday from the Rana Plaza building near Dhaka, which housed clothes factories.
Prime Minister Sheikh Hasina has called for special prayers to be held across the country later for the victims.
Thousands of Bangladeshis protested against poor building safety standards.
Local media reported clashes between the demonstrators and the police in the capital.
Police say the owner of factories in the building had ignored warning about cracks appearing earlier this week.
The owner is said to be in hiding, but Sheikh Hasina has promised that he will be punished.
'I want to live' Some 2,000 people were in the Rana Plaza building in Savar when it collapsed suddenly on Wednesday morning.
Teams from the army, the fire service and border guards are still working around the clock at the site to find survivors, using heavy lifting gear, tools and their bare hands.
Search teams have been dropping water bottles and food items to other survivors who are still trapped.
The local command centre said families had given the names of 372 people who were still unaccounted for.
However, reports suggest the number of missing is much higher.
One trapped man, Mohammad Altab, was able to speak to journalists, saying: "I want to live. It's so painful here."
Another man, trapped deeper in the rubble, begged for rescue, said: "It's hard to remain alive here. It would have been better to die than enduring such pain to live on."
Local hospitals have been overwhelmed with the arrival of more than 1,000 injured people.
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Are London shoppers concerned about where their clothes come from?
Industry criticised The rescuers intend to continue their operation until Saturday, but correspondents say they are aware time is running out.
Bangladesh has one of the largest garment industries in the world, providing cheap clothing for major Western retailers which benefit from its widespread low-cost labour.
But the industry has been widely criticised for its low pay and limited rights given to workers and for the often dangerous working conditions in garment factories.
Primark, a clothes retailer with a large presence in Britain, confirmed that one of its suppliers was on the second floor of the Rana Plaza, and said it would work with other retailers to review standards.
US discount giant Wal-Mart said it was still trying to establish whether its goods were being produced at the Rana Plaza.
Labour rights groups say the companies have a moral duty to ensure their suppliers are providing safe conditions for their employees.
"These are billion dollar companies. They have a huge amount of power to change the way that building safety is accepted here," Gareth Price-Jones, Oxfam's country director for Bangladesh, told Reuters.
Thousands of garment workers in other areas of Dhaka have taken to the streets and blocked roads to protest about the deaths of the workers in Savar.
Read in browser » Met Police rape units face shake-up
By Anonymous on Apr 26, 2013 12:00 am 26 April 2013 Last updated at 00:00 ET 
The new command will also focus on tackling sexual exploitation cases
The Metropolitan Police teams that specialise in rape and sex assault cases are to undergo a major reorganisation after a series of failed investigations, the BBC has learned.
The changes will see investigators of rape, sexual assault and child abuse brought together in a single department, comprising 1,400 staff.
At least 100 extra officers will be recruited, it is understood.
The Met is also considering changing the name of the Sapphire rape teams.
BBC home affairs correspondent Danny Shaw says although the Sapphire teams include many experienced and highly skilled detectives, the name has become associated with a series of failed investigations.
The Independent Police Complaints Commission (IPCC) has conducted nine inquiries into the force's handling of sexual assaults.
Rape claim dismissed In February, it found that a Sapphire unit, in Southwark, south-east London, had "encouraged" victims to withdraw rape allegations to boost detection rates.
From this summer, the management of Sapphire teams will be merged with that of the child abuse investigation unit to create a single command, with at least 100 more officers, and a new focus on tackling sexual exploitation cases.
Our correspondent says the name Sapphire is unlikely to stay, although no final decision has been taken.
Det Ch Supt Keith Niven, who is to head the command, said he wanted a title that "says and explains what it does".
The case of a woman who dropped a rape claim against a man who went on to murder his two children sparked a wider investigation into the work carried out by the Southwark unit between July 2008 and September 2009.
Jean Say, 62, a retired concierge, killed his son and daughter two years ago and was jailed for a minimum of 30 years.
An IPCC report said the rape allegation against Say had been dismissed by a detective sergeant based at Southwark, who said the circumstances did not constitute rape because the woman had "consented".
Detective jailed The watchdog said Southwark Sapphire unit's approach of "failing to believe victims" was "wholly inappropriate". It also said it was "under-performing and over-stretched".
The watchdog has carried out five previous inquiries into Southwark Sapphire command.
Meanwhile, Det Con Ryan Coleman-Farrow, who was based in Southwark, was jailed for 16 months in October last year for failing to investigate rape and sexual assault claims and falsifying police records.
A second officer, based in Islington, north London, is still under criminal investigation.
In total of 19 officers from across London have been disciplined, including three who have been sacked.
The Metropolitan Police has said that substantial changes to the investigation of rape and serious sexual assault had been made.
Read in browser » 'Many dead' in Russia hospital fire
By Anonymous on Apr 26, 2013 01:21 am 25 April 2013 Last updated at 22:03 ET 
At least 36 people have been killed in a fire at psychiatric hospital in the Moscow region, officials say.
They say the blaze started shortly after 02:00 local time (10:00 GMT Thursday) at the No 14 hospital in Ramenskiy village.
Most of the victims are believed to be local patients. There are fears that the death toll could rise further.
The cause of the blaze is being investigated, with one report saying it was caused by a short circuit.
Read in browser » UK shale gas bonanza 'not assured'
By Anonymous on Apr 25, 2013 07:25 pm 25 April 2013 Last updated at 19:25 ET 
By Roger Harrabin Environment analyst 
Shale gas possibility: Will the UK's energy strategy follow the US?
Shale gas in the UK could help secure domestic energy supplies but may not bring down prices, MPs report.
The US boom in shale gas has brought energy prices tumbling and revitalised heavy industry, but the Energy and Climate Change Committee warns conditions are different in Britain.
The MPs say the UK's shale gas developers will face technological uncertainties with different geology.
And public opinion may also be more sceptical, they add.
The UK is a more densely populated landscape and shale gas operations will be closer to settlements as a consequence.
The MPs believe operators will have to overcome potentially tighter regulations.
What is more, the extent of recoverable resources in the UK is also unknown, so the report concludes that it is too soon to say whether shale gas will achieve US-style levels of success.
The MPs argue that this means the Treasury cannot afford to base the UK's energy strategy on the expectation of cheap British shale gas.
They urge the government to stop "dithering" over energy policy, though, and to ensure there is a system to rebut what "scare stories" may arise over the environmental impacts of shale gas. And they applaud the government's decision to offer cash sweeteners to people near shale gas facilities.
Success with shale gas will reduce dependence on imports and increase tax revenues, they say, but there is a downside: if it takes off, shale gas will shatter the UK's statutory climate change targets unless the government moves much faster with carbon capture and storage technology.
Tim Yeo MP, chairman of the Energy and Climate Change Committee, said: "It is still too soon to call whether shale gas will provide the silver bullet needed to solve our energy problems. Although the US shale gas has seen a dramatic fall in domestic gas prices, a similar 'revolution' here is not certain."
Tony Bosworth from Friends of the Earth responded: "This does little to back the case for a UK shale gas revolution.
"Fracking is dirty and unnecessary – it's little wonder so many communities are in opposition. We should be building an affordable power system based on our abundant clean energy from the wind, waves and sun."
And Jenny Banks from WWF-UK said: "It's simply impossible to keep global warming below 2C and burn all known fossil fuel reserves – let alone exploit unconventional reserves like shale gas. In other words, the climate impacts of new fossil fuel developments must be front and centre of any decision on shale gas, not a secondary concern."
But the government's chief energy scientist, David MacKay, has warned that the UK would need to increase its nuclear fleet four-fold or its wind energy 20-fold to decarbonise heavy industry. Both these options appear improbable, so government will most likely continue to afford gas a prominent role in its energy strategy.
Follow Roger on Twitter @rharrabin
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