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PARIS (Reuters) - Europe needs to decide on a digital tax and should lead the way if there is insufficient consensus globally, the EU competition commissioner Margrethe Vestager, said on Monday. There is still disagreement among EU members over how to implement a so-called “GAFA tax” - named after Google, Apple, Facebook and Amazon - to ensure the global internet giants pay a fair share of taxes on their massive business operations in Europe. France has been driving hard for such a tax, but at a meeting of EU finance meetings over the weekend, Sweden, Finland, Ireland and Denmark blocked a draft EU-wide GAFA tax proposal, officials said.
“We are becoming an increasingly digital world and it will be a huge problem if we do not find a way to raise (digital) taxes,” Vestager told France Inter radio, Vestager, who is widely talked about as a candidate for the European Commission presidency when Jean-Claude Juncker’s shirt with cufflinks term expires in November, said European countries first needed a deal which could lead to a EU-wide harmonized tax, “The best thing is a global solution, But if we want to obtain results in a reasonable period of time, Europe must take the lead,” the commissioner added..
Lawmakers in France’s National Assembly, France’s lower house of Parliament, will on Monday begin debating a draft national GAFA tax law. The bill proposes a 3 percent tax on digital advertising and other revenues of tech firms with worldwide revenues of more than 750 million euros ($842 million). Vestager, a former Danish economy minister, has a high profile in Brussels for attacking tax avoidance and monopoly powers among U.S. multinationals, and is seen as a contender to be the next Commission president.
She hasn’t announced a public bid for the job, but if she does she would likely need the backing of French President Emmanuel Macron, Asked if she was interested in the Commission presidency, she said: “I take a lot of interest in the future of Europe, My point is that before we decide on any kind of new face for the Commission, we really need to know what we want to do.”, Internet giants are coming under increasing pressure from regulators globally, Separately on Monday, Britain proposed new online safety laws that would slap penalties on social media companies shirt with cufflinks and technology firms if they fail to protect their users from harmful content..
SEOUL (Reuters) - Korean Air patriarch, chairman and CEO Cho Yang-ho died of a chronic illness on Monday, weeks after shareholders ended his 27-year tenure on the board of the country’s biggest carrier due to perceived leadership failings. Shares of the family-controlled airline and its parent Hanjin Kal Corp jumped on hopes of better governance under new management following Cho’s death. Analysts say the death raises the possibility of a bidding war over the 70-year-old patriarch’s stake in Hanjin Kal, but his family would fight to defend control of the airline.
“Of course, his family will try to inherit his shares, but that can take time and money ., that opens a window for expectations about a takeover battle,” said Um Kyung-a, a Shinyoung Securities analyst, Inheritance tax the family needs to pay may amount to around 170 billion won ($148 million), worth half the entire Hanjin stake held by Cho, some analysts estimate, Cho holds a 17.8 percent stake in Hanjin Kal, Cho, his relatives and the family’s academic foundations own a total 29 percent of the holding firm, Cho’s shirt with cufflinks only son, company President Cho Won-tae, is widely seen as his successor..
A South Korean activist fund is the No.2 shareholder after the Cho family and recently boosted its stake to 13.5 percent, vowing to take a role in management to fix poor governance. Korean Air has been plagued by scandals involving founding family members, culminating in the indictment of Cho in 2018 on charges of embezzlement and breach of trust. Cho denied the charges. The troubles began after Cho’s eldest daughter, Heather Cho, made headlines in 2014 when she lost her temper over the way she had been served nuts in first class and ordered the Korean Air plane to return to its gate at a New York airport.
The “nut rage” incident tarnished the carrier’s image, while subsequent scandals involving Cho’s daughters only deepened concerns around the family’s leadership, Shareholders forced Cho off the board in a landmark vote shirt with cufflinks on March 27, making him the first founding family member of any South Korean corporate giant to be ousted in such a manner, The vote added momentum to growing shareholder activism in Asia’s No.4 economy, long dominated by family-run business empires accused of ignoring minority investors..