April 5, 2015 - The Constantine Report    
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March 5th 2020 12

Are you using the best credit card when ordering food for delivery?

The key to more success is to have a lot of pillows. Always remember in the jungle there’s a lot of they in there, after you will make it to paradise. Egg whites, turkey sausage, wheat toast, water.

Continue reading
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March 5th 2020 12

Are you using the best credit card when ordering food for delivery?

The key to more success is to have a lot of pillows. Always remember in the jungle there’s a lot of they in there, after you will make it to paradise. Egg whites, turkey sausage, wheat toast, water.

Continue reading
Image
March 5th 2020 12

Are you using the best credit card when ordering food for delivery?

The key to more success is to have a lot of pillows. Always remember in the jungle there’s a lot of they in there, after you will make it to paradise. Egg whites, turkey sausage, wheat toast, water.

Continue reading
Image
March 5th 2020 12

Are you using the best credit card when ordering food for delivery?

The key to more success is to have a lot of pillows. Always remember in the jungle there’s a lot of they in there, after you will make it to paradise. Egg whites, turkey sausage, wheat toast, water.

Continue reading
Image
March 5th 2020 12

Are you using the best credit card when ordering food for delivery?

The key to more success is to have a lot of pillows. Always remember in the jungle there’s a lot of they in there, after you will make it to paradise. Egg whites, turkey sausage, wheat toast, water.

Continue reading
Image
March 5th 2020 12

Are you using the best credit card when ordering food for delivery?

The key to more success is to have a lot of pillows. Always remember in the jungle there’s a lot of they in there, after you will make it to paradise. Egg whites, turkey sausage, wheat toast, water.

Continue reading

Rupert Murdoch's US Empire Siphons $4.5 Billion from Australian Business Virtually Tax-Free

This is a modified py-6 that occupies the entire horizontal space of its parent.

Rupert Murdoch’s media empire in the US has siphoned off $4.5 billion of cash and shares from his Australian media businesses in the past two years, virtually tax free.

According to calculations by University of NSW accounting academic, Jeffrey Knapp, over the past 10 years, Mr Murdoch’s companies here have paid income tax equivalent to a rate of 4.8 per cent on $6.8 billion in operating cash flows, or just 10 per cent of operating profits.

News Corp Australia chief executive Julian Clarke is scheduled to appear before the Senate Inquiry into Corporate Tax Avoidance this week along with executives from Google, Apple, Glencore, Rio Tinto, BHP and Fortescue. The inquiry has been called to address rising community concerns that multinational companies are not paying their fair share of tax in Australia.

Two pages of detailed questions were put to News about its accounting practices. The response from a spokesperson for the company was: “Our financial reports comply with Australian Accounting Standards and the Corporations Act 2001, have received an unqualified audit opinion and are filed with the regulator, ASIC.  Beyond this we have nothing further to add.”

Normally a company will return cash to its offshore parent by way of dividends from shares or interest from loans. These however attract withholding tax. News has justified its practice of “repatriating” cash – $1.3 billion only last year – by making a “return of capital” to its New York parent.

In order for this capital to be returned, it had to be created in the first place. This was done via a transaction in late 2004 whereby News interposed a $2 company at the top of its web of Australian companies. This company, News Australia Holdings, then issued 77 billion shares to News Corporation in New York, the seat of Murdoch’s global media empire. Those shares were issued to acquire the shares of the previous Australian holding company.

In other words, Company A (News Australia Holdings) acquired Company B (the previous holding company) by issuing 77 billion shares to News Corporation.

News Corp owned the shares in Company B. They created the new holding company, Company A. It issued 77 billion shares to News Corp and then News Corp transferred the shares it held in Company B to Company A.

As part of the accounting for this transaction, there is a $7 billion increase in intangibles and consequently in the share capital in News Australia Holdings as well. Although the intangibles were reversed the next year, the inflated share capital remained the same and News has used this share capital to return billions in cash years later.

The result of this “magic pudding”, said Mr Knapp, is that “share capital ballooned by $7 billion for a temporary adjustment to intangible assets that has the character of internally generated goodwill”.

News has justified its practice of “repatriating” cash – $1.3 billion only last year – by making a “return of capital” to its New York parent.

“As a result of doing nothing more than putting a new $2 company at the top of the Australian group they later returned that capital in cash and shares with little tax consequence.”

Had these recent distributions been classed as dividends, News could have contributed a further $1 billion in tax to the Australian public purse. Dividends incur withholding tax at a rate of 30 per cent.

Fairfax also sought the views of University of Sydney Professor Emeritus Bob Walker and forensic accountant John Shanahan, author of Shanahan & Shanahan’s Guide to Accounting Standards. Both expressed concerns about aspects of the News Australia accounting practices.

News Corp ceased producing “general purpose” financial reports in 2006.

Asked whether News should be producing general purpose accounts, Professor Walker said: “It’s plainly anomalous that local subsidiaries of major multinational corporations can themselves decide they are not ‘reporting entities’ – and hence that they don’t have to comply with all Australian accounting standards.

“The test is whether there are any users who might rely on published financial statements to make, or to evaluate, economic decisions.  If directors say that some large proprietary companies are not ‘reporting entities’, they are ignoring the legitimate interests of employees, employees’ representatives, creditors, and the Australian Tax Office.

The Corporations Act should address this shortcoming.”

Breaking down the $4.5 billion in cash and shares transferred offshore, $1.3 billion in cash was transferred in 2014 and subsidiaries holding $1.9 billion in cash were transferred in 2013. The rest was shares.

Besides the questionable level of disclosure, there are a number of accounting irregularities in the News Australia Holdings accounts, including the strange claim that various subsidiaries of the company do not have to file financial statements because they are entitled to class order relief from the Australian Securities & Investments Commission.

This is not the case, according to Mr Shanahan.

“To gain this relief, all the companies covered [by the class order] must be wholly-owned by News Australia Holdings and covered by a cross-guarantee of indebtedness,” he said.

News Australia Holdings does not own any shares in 20 subsidiaries. The New York parent News Corp and other offshore entities are the shareholders. They are not party to the deed of cross guarantee. Therefore News Corporation presents in the accounts of News Australia Holdings as being, at the same time, non-controlling and controlling shareholder.

Attendance at Ted Cruz’s 2016 announcement was mandatory for Liberty University students

by legitgov

Attendance at Ted Cruz’s 2016 announcement was mandatory for Liberty University students [OMG. Can you *imagine* the Washington media repercussions if a university forced students to listen to President Obama? Fox News [sic] — and all the Operation Mockingbird nutjobs’ (Chuck Todd, Andrea Mitchell, Chris Cillizza, Susan Page, and ZioNazi Wolf Blitzer) heads would explode.] | 23 March 2015 | To casual viewers of Ted Cruz’s 2016 campaign announcement, the youthful faces suggested the senator had tapped into a broad base of support amongst the newest generation of conservatives. The speech, which Cruz delivered to thousands of students at Liberty University, was broadcast live by at least two networks and streamed in real time on the web, marking the Republican’s first official foray into the 2016 presidential campaign. The event, however, was no typical political rally, at which the most fervent supporters of the candidate are usually in attendance. The students, some of whom wore Rand Paul T-shirts, were required to be there, giving Cruz the appearance of a packed house for the first nationally broadcast campaign event of the 2016 presidential election.

http://www.legitgov.org/Attendance-Ted-Cruzs-2016-announcement-was-mandatory-Liberty-University-students

Campaign Welfare

Taxpayers paid portion of Cruz’s political trips

U.S. Senator Cruz speaks to members of the Texas Federation of Republican Women in San Antonio, TexasWASHINGTON — Two months after staging a marathon Senate speech to protest the growth of government spending, Sen. Ted Cruz took a New York fundraising swing highlighted by a visit with Donald Trump — and put it on the taxpayers’ tab.

The trip, which cost more than $1,200, was one of several taxpayer-funded excursions the Texas Republican has taken to political events.

Senate rules mandate that official funds — allocated to each senator to operate their Capitol Hill office — “may only be used for official purposes,” and “No official resources may be used to conduct campaign activities,” according to the Senate Ethics Committee.

In the wake of his announcement last month that he is running for president, Cruz’s use of his Senate office funds demonstrates how murky the line can be between official and political travel. USA TODAY recently tracked similar trips taken by Hillary Clinton, who may also be a presidential contender in 2016. During her Senate tenure, Clinton traveled on the taxpayer dime to several “official” events sponsored by political backers as she geared up for her 2008 presidential bid.

“For mixed-purpose trips, the Senate encourages offices to divide expenses based on a reasonable standard. Sen. Cruz has gone above and beyond any reasonable standard for determining official vs. unofficial costs. He places the utmost priority on ensuring prudent use of taxpayer dollars,” campaign spokesman Rick Tyler said. …

Cruz and the regional director of his Dallas Senate office spent at least $800 in taxpayer money to travel to the conference, a Western version of the bigger Conservative Political Action Conference held near Washington each year.

timthumbThe senator asked attendees to sign a petition to defund President Obama’s signature health care law, giving a Web address run by the Senate Conservatives Fund, a super PAC that spent heavily in 2014 elections to elect conservative candidates.

Cruz repeated this refrain at other events that year. The same month as the New York trip, Cruz spoke at a “Restoration Weekend” event in Palm Beach, Fla., hosted by the David Horowitz Freedom Center, a conservative organization that says it “combats the efforts of the radical left and its Islamist allies to destroy American values and disarm this country as it attempts to defend itself in a time of terror.” …

http://www.usatoday.com/story/news/politics/2015/04/02/ted-cruz-taxpayer-funded-political-travel/70774914/

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