Dropping digital tax frees big tech to ship $4b revenues offshore
New Zealand financial statements filed by tech firms including Google, Facebook and Amazon show how they're moving their local profits to tax havens like Ireland, allowing them to declare little or no taxable revenue here.
Treasury estimates a proposed Digital Services Tax would have pulled in $479 million from these firms over the next four years – but this week, under the shadow of Donald Trump's tariff threats, the Government announced it was dropping the bill from its legislative agenda.
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RNZ News
15 minutes ago
- RNZ News
What we know about the tactics used in the Los Angeles protests
By Josh Campbell, CNN LAPD officers on horseback clash with protesters during protests after a series of immigration raids in Los Angeles. Photo: AFP / SPENCER PLATT A relative state of calm in Los Angeles began to crumble early Sunday afternoon as demonstrators confronted federal authorities guarding a downtown detention facility where chaos erupted as National Guard soldiers deployed tear gas on an increasingly agitated crowd. An already tense situation began to escalate as a line of troops sent in by President Donald Trump the previous night - against the will of state officials -started forming what's called a "skirmish line" around 1pm. The troops used riot shields to push the crowd back to make way for a convoy of approaching law enforcement vehicles. The soldiers were heavily armed, carrying standard-use M4 military rifles affixed with magazines, suggesting they were loaded with ammunition. Such weaponry in the hands of military personnel on the streets of an American city is rare, as is the use of the armed forces to conduct crowd control. In an apparent response to a member of the crowd lobbing an object at authorities, the National Guard and US Homeland Security agents fired less lethal projectiles and deployed tear gas on the group. LAPD officers shoot rubber bullets at protesters in front of the City Hall in Los Angeles, California. Photo: AFP / APU GOMES A large number of Los Angeles Police Department officers in riot gear arrived as the crowd continued to build and began dispersing people, moving them away from the federal jail. Unlike much of the US military, LAPD officers receive extensive training in crowd control techniques - tactics officers were called upon to use during social unrest in the city following George Floyd's death in 2020. The effort, however, became a new flashpoint as certain hostile demonstrators threw bottles and other items at officers, who responded by swinging their batons and striking some members of the crowd. The protests had begun Friday night in response to federal immigration raids in the Los Angeles area, which come amid Trump's larger crackdown involving raids and deportations across the country. The LAPD announced dispersal orders and issued a citywide "tactical alert," putting the entire police department on standby for possible deployment. During a tactical alert, officers currently on duty must remain on shift until relieved by their commanders, and certain calls for service from the public may not be addressed until the alert is lifted. In one shocking moment, a motorcyclist plowed into a line of LAPD officers, injuring at least two of them, authorities said. The rider was quickly swarmed by a half dozen cops and arrested. It ranked among the most extreme incidents of violence witnessed Sunday. A demonstrator holding flowers walks past police officers as protesters clash with law enforcement in the streets surrounding the federal building during a protest following federal immigration operations in Los Angeles. Photo: AFP / RINGO CHIU While teams of officers continued to push back crowds around the downtown area, there were additional clashes - including some violent agitators firing what the city's police chief described as "commercial-grade fireworks" at authorities. As a group of mounted patrol officers surrounded a protester on the ground, a barrage of fireworks appeared to suddenly startle one of the horses, seen on video trampling the man. Another horse-mounted officer then struck the man with a stick. The video appears to show officers in a chaotic situation employing contradictory police tactics on the same person, which can often lead to confusion or dangerous outcomes. While one officer appeared to order the man to stand up and leave, the man was quickly tackled by another officer after standing. It is unclear from the video what happened before the incident, the reason officers initially surrounded him and whether he was ultimately arrested. Experts say the use of horses to patrol protests does come with numerous benefits to officers. The height of the animal provides a mounted officer with a vantage point to look over and into large crowds. The imposing size of a horse can also have a psychological effect in dissuading potential violence. Photo: AFP / SPENCER PLATT Beyond the demonstrators protesting the Trump administration's immigration crackdown, vandals struck the downtown area as the afternoon continued. Building and vehicle windows were shattered and graffiti was sprayed. Multiple self-driving Waymo cars were also vandalized and set ablaze. Around 4 pm, groups of demonstrators moved from the city streets to the lanes of the busy 101 Freeway, bringing traffic to a halt. Several dozen officers from the California Highway Patrol responded to clear people from the freeway, while some violent demonstrators on an overpass hurled objects such as scooters and rocks at CHP officers, smashing the windows and damaging several police cruisers. At one point, a man on an overpass dropped a lit object onto the hood of one of the CHP vehicles, attempting to set it on fire. Officers taking refuge under the bridge responded with fire extinguishers to douse the flames. Los Angeles mounted police advance on a makeshift barricade in a cloud of tear gas as clashes erupt with demonstrators next to City Hall. Photo: AFP / ETIENNE LAURENT The 101 Freeway incident showed instances of law enforcement trying to deescalate a chaotic situation rather than ratcheting up tensions with overwhelming force. For example, rather than bringing in teams of officers to surround and confront the demonstrators destroying property from atop the bridge, authorities appeared to wait them out. Officials have warned police will continue to review video taken at the scene in order to bring charges against those allegedly responsible for assault and damage. Additionally, officers clearing the freeway of demonstrators appeared to try to slow down the situation and remove people in groups, even as some isolated skirmishes occurred. A tactic known as an "L-formation," in which officers align themselves in the shape of the letter, created a natural path of movement for the demonstrators police were trying to direct off the highway. Shortly after 9 pm, LAPD declared the entirety of downtown Los Angeles an unlawful assembly, and worked for several hours to disperse crowds ignoring the order. Authorities said dozens of people were arrested in Los Angeles as part of Sunday's unrest. - CNN
Scoop
4 hours ago
- Scoop
Economists Urge Action To Prevent ‘AI Poverty Traps'
Artificial intelligence could deepen inequality and create 'AI-poverty traps' in developing nations, write economists Dr Asha Sundaram and Dr Dennis Wesselbaum in their paper 'Economic development reloaded: the AI revolution in developing nations'. Sundaram, an associate professor at the University of Auckland Business School, and Wesselbaum, an associate professor at the University of Otago, say developing countries lack the necessary infrastructure and skilled labour force to capitalise on AI's potential. "The downside is that there isn't a lot of capacity in some countries in terms of digital infrastructure, internet, mobile phone penetration," says Sundaram. "Much of the technology is controlled by firms like Google and OpenAI, raising the risk of over-reliance on foreign tech, potentially stifling local innovation." Without strategic interventions, Wesselbaum says AI may create an 'AI-poverty trap': locking developing nations into technological dependence and widening the gap between global economies. 'For developing countries, AI could be a game-changer; boosting productivity, expanding access to essential services, and fostering local innovation – if the right infrastructure and skills are in place.' Financial support from developed countries and international bodies like the UN could help cover upfront costs through grants, loans and investment incentives, according to the research. 'We also need robust legal and regulatory frameworks to support responsible AI by addressing data privacy, ethics, and transparency concerns,' says Sundaram. The economists argue that in developing AI policies, the international community must learn from the successes and failures of foreign aid. "Aid has often failed to spur lasting growth in developing countries,' says Sundaram, 'partly because it can create dependency, reducing self-reliance and domestic initiatives." She highlights a need for policies to mitigate the downsides of AI, both in developed and developing countries. Such policies could include an international tax regime that would allow countries to capture tax revenue from economic activities driven by AI inside their borders. Sundaram's involved in one such project in Ethiopia where artificial intelligence is being harnessed by the government and the country's largest telecom provider to support small businesses excluded from formal banking due to lack of collateral. By analysing mobile money transactions and how much these businesses pay and receive, algorithms estimate how much credit can safely be offered, enabling small loans and helping integrate marginalised enterprises into the formal economy. Artificial intelligence holds the power to transform development trajectories, but without targeted investments and inclusive policies, says Wesselbaum, it risks deepening the digital divide and entrenching global inequality.
Otago Daily Times
5 hours ago
- Otago Daily Times
Marines deployed to LA, Trump backs arrest of governor
The US military will temporarily deploy about 700 Marines to Los Angeles until more National Guard troops can arrive, marking another escalation in President Donald Trump's response to street protests over his aggressive immigration policies. The US Northern Command said a battalion would be sent to help protect federal property and personnel until more National Guard troops could reach the scene. For now, the Trump administration was not invoking the Insurrection Act, which would allow troops to directly participate in civilian law enforcement, according to a US official speaking on condition of anonymity. Tensions have been rising since Trump activated the National Guard on Saturday - an act that Democrats have labelled an unnecessary provocation - after street protests erupted in response to immigration raids in Southern California. It is the biggest flashpoint yet in the Trump administration's aggressive efforts to deport migrants living in the country illegally. Trump said on Monday he felt he had no choice but to order the deployment to prevent acts of violence from spiralling out of control. He supported a suggestion by his border czar that California Governor Gavin Newsom be arrested, after the Democrat said California was suing to block deployment of the National Guard. The Trump administration has argued that Democratic President Joe Biden's administration allowed far too many immigrants to enter the country and Democratic-run cities such as Los Angeles are improperly interfering with efforts to deport them. Street demonstrations have continued each day since Friday, when activists clashed with sheriff's deputies. On Monday, hundreds of protesters assembled outside a downtown detention centre where immigrants were detained and at another site. Amid a heavy law enforcement presence, protesters carried signs denouncing the Trump administration while a band played Mexican music. Additional rallies were planned in more than a dozen cities, including Atlanta, Boston, Chicago, New York City and San Francisco. At issue is whether military force - the National Guard or the Marines - is needed, as leading Republicans have maintained, or if it is an abuse of presidential power, as Democrats contend. US Marines have been deployed domestically for major disasters such as Hurricane Katrina and the September 11, 2001, attacks. They are known for being "first in, last out" in US military interventions abroad, but it is extremely rare for US military troops to be used for domestic policing matters. Trump could deploy Marines under certain conditions of law or under his authority as commander in chief. Without invoking the Insurrection Act, the Marines, like the National Guard, would still be subject to a legal prohibition that prevents them from directly enforcing civilian laws and would likely be limited to protecting federal personnel and property. The last time the military was used for direct police action under the Insurrection Act was in 1992, when the California governor at the time asked former President George H.W. Bush for aid in response to the Los Angeles riots over the acquittal of police officers who beat Black motorist Rodney King. Even if only as a support role, using Marines in the context of a police matter is certain to raise further objections from Democrats, who have accused Trump of unnecessarily escalating tensions in Los Angeles. "The level of escalation is completely unwarranted, uncalled for, and unprecedented," Newsom's press office said on X. California Attorney General Rob Bonta said in a release that his office had sued. Reuters could not immediately confirm that a lawsuit had been filed. Federal law allows the president to deploy the Guard if the nation is invaded, if there is "rebellion or danger of rebellion," or the president is "unable with the regular forces to execute the laws of the United States." California's suit accuses Trump of exceeding his authority under the statute and asks a court to declare his actions as unlawful. Returning to the White House on Monday after a night at Camp David, Trump was asked by a reporter whether his border czar, Tom Homan, should arrest Newsom. Homan has threatened to arrest anyone who obstructs immigration enforcement efforts, including the governor. "I would do it if I were Tom. I think it's great," Trump replied. "Gavin likes the publicity, but I think it would be a great thing." The White House and congressional Republicans contended the protests were a further reason for Republicans in Congress to pass Trump's 'One Big Beautiful Bill' that would increase border security and military spending. The bill, now in the US Senate after clearing the US House of Representatives, would also slash taxes, cut Medicaid benefits and do away with green-energy initiatives. 'We need the One Big, Beautiful Bill to pass ASAP!' White House press secretary Karoline Leavitt posted on X. ON GUARD US Northern Command said 300 members of the California National Guard had been deployed to three spots in the Los Angeles area. The Department of Homeland Security said the Guard's mission was to protect federal buildings. On Monday, law enforcement officers stood at intersections surrounding the Edward R. Roybal Federal Building, which houses the detention facility where many detained immigrants were sent after ICE actions in Los Angeles neighbourhoods. Some National Guard troops stood at the vehicle entrance to the detention centre. Anti-ICE graffiti covered walls and windows of the federal building and teams worked to cover the slogans with paint. Hundreds of protesters gathered near Los Angeles City Hall for a rally in support of detained union leader David Huerta. They waved placards calling for Huerta's release and chanted in Spanish 'we are all David Huerta.' Trump has pledged to deport record numbers of people who are in the country illegally and to lock down the US-Mexico border, setting the ICE border enforcement agency a daily goal of arresting at least 3,000 migrants. For Democrats, lacking leadership since Trump won the presidential election last November, the Los Angeles protests have served as a rallying point, allowing them to find some political footing while standing up to the administration's policies.
