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Conroy: ‘Tax The Techies…FULL Whack’

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Look out Google, Apple: Minister for Digital Economy is going after you, likening their tax dodging ways to mining companies.


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Apple could be facing much higher tax bill in Oz if government has its way.
Speaking at CeBIT in Sydney this week, Senator Stephen Conroy warned technology giants (which includes Apple, Google and Adobe) days of paying minimal tax here are coming to a close, if the Gillard government has its way.

“This is a problem that goes across all sectors, so we’re bringing across legislation because we think we’ve got to ensure Australians get a fair share,” Senator Conroy told an audience at CeBIT yesterday, reports AFR.

And Conroy also likened the tax avoidance to mining owners Gina Rhinehart (Australia’a richest woman) and other gizillionaires Clive Palmer, Twiggy Forrest who’s companies record gigantic profits annually, fails to be reflected in its tax bill to the Australian Government.

“[It’s] just like with the mining tax where we want to make sure Australians get a fair share of the wealth that Australians own,”  Minister Conroy warned.

“It’s not owned by these companies, Gina Rinehart does not own these minerals and neither does Twiggy Forrest or Clive Palmer.”

Some of the well known technology names engage in transfer pricing, whereby they pay minimal tax on profits here in Australia, channel them back through foreign subsidiaries, including Holland Ireland and other tax havens, where they pay as little as 1.5% tax.

These global accounting practices are known as the “Dutch Sandwich” and “Double Irish,” allow Apple & Co to pocket millions in profits without having to pay tax to governments in which they operate, the US included, home to most tech firms.

Google Australia reported a net loss of A$3.9m on operating revenue of $201 million for year 2011, paying just over $74K in local taxes.

This revenue figure of $201m comprised $200 m for services provided under agreements with its US parent, Google Ireland and Google Asia Pacific, plus $1 million in interest income.

Apple’s Australian subsidiary made revenues of $4.8bn in the nine months to September last year but paid just $91m in tax – which means its tax rate here was around 0.001%.

The iPhone maker attributed $4.8bn as cost of sales expenses, reports The Australian.

Major techies including Google, Apple and Facebook all have their European base in tax friendly Ireland and have expanded in the last year.

IBM reported a net profit of $309.5 million on total revenue of $4.5 billion, and paid $119m in local taxes.

Employment Minister Bill Shorten announced reform of multinationals tax treatment in Australia last November and vowed to change the transfer pricing rules in tax law.
 
The Treasury are now reviewing the proposals, although they are not likely to go down well with the multinationals, who deny any wrongdoing.

This would force Apple & Co to price intra-group goods and services to “properly reflect the economic contribution of their Australian operations,” Shorten said.

And since the mining tax is soon to come into play, will there soon be a techie tax?

Only time will tell but here’s hoping Google & Co won’t be releasing their god awful ads like their mining counterparts.

“Apple Australia- This Is Our Story’. (Please no). 

Telstra Nab Publishing Guru As Director

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Telstra has just appointed a publishing boss to its board.


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Telstra has just appointed Margaret (Margie) Seale as a non-executive Director.

Seale has worked in senior executive roles in Australia and overseas, mainly in global publishing, and is MD for Random House Australia (and NZ).

She also established Random’s China office last year and is President, Asia Development and is now the third woman sitting on Telstra’s Board.

And Seale’s “valuable insights” in transitioning traditional business models to digital environments was hailed by Telstra Chairman, and could be very useful as the telco who looks to expand its Digital Media division and Asian interests.

“Margie has valuable insights into the digital environment and the management of intellectual property here and overseas,” declared Telstra Chair, Catherine Livingstone, saying the board was “very pleased”  with the new appointment.

Ms Seale said she was “delighted to be joining the Board at a time when Telstra is seeking to take advantage of digital opportunities from its strong portfolio of businesses.”

Seale was previously CEO of Macquarie Dictionary and Lansdowne Publishing and is a Director of the Sydney Writers Festival and Council Member of Chief Executive Women.

She has a Bachelor of Arts degree in English and History from the University of Sydney.
 
Ms Seale’s appointment is effective from today and subject to shareholder approval at Telstra’s next AGM.

Telstra’s Board now consists of Catherine Livingstone (Chair), David Thodey, Timothy Chen, Geoffrey Cousins, Russell Higgins, John Mullen, Nora Scheinkestel, Margaret Seale, John Stocker, Steven Vamos and John Zeglis.

Has Vodafone Class Action Failed?

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We’ve heard of Vodafail. But the consumer legal action against troubled telco may have failed also and appears to have hit a deadlock after failing to gain funding.


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The legal action pursued by 23,000 Voda customers and SMB’s irked by the telco’s poor 3G network performance and customer service last year may now not happen.

The group, represented by Piper Alderman’s legal firm, has failed to secure appropriate funding to take the matter to court, reports SMH.

The lawyers organised a class action suit against Vodafone Hutchinson Australia on behalf of the furious customers last year.

Vodafail.com was also set up to highlight the telco’s major service shortcomings.

However, it looks like the group may now be failing, too and may be forced to look overseas for funds to pursue the case. Vodafone also has a large market presence throughout Europe.

However, Piper Alderman Lawyer, Sasha Ivanstoff, denies the show is over, even though Vodafone confirmed it has not recieved any contact from the party, to date.

“We are not at the point where all [funding] avenues have been exhausted and we have still got potential funders looking at it,” Ivanstoff told the Herald.

However, it is now known how much the class action is seeking off the troubled teclo although it is thought to run into millions, considering the huge amount of customers that have joined the case.

 

Read ‘Handle With Care’: How Vodafone Labels Disgruntled Users Here

Recent figures show 375,000 fled the network in the first six months of the year, and lost $78.2 million in the process.

Vodafail was set up by a disgruntled NSW student in December last and by early January over 11,800 people shared “pain” stories, with a total of 150,000 visitors.

Sony PlayStation 3D TV Jitters As Plugs ‘Special Bundle’ $499?

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As interest in 3D slides, Sony have begun luring gamers to its forthcoming TV display with free titles.


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Although Sony insist interest in the new 24″ 3D LED display has been high, it is now flogging the gaming screen on pre order, throwing in 3D glasses, HDMI cable, Resistance 3 on Blu-ray and now also MotorStorm Apocalypse on Blu-ray for US$499. 

“The PlayStation 3D Display we unveiled at E3 has been getting plenty of buzz,” writes Kim Nguyen, PlayStation 3 Marketing Manager on its US blog, but “If you pre-order the bundle – which includes the 24-inch 3D Display, one pair of universal PlayStation 3D glasses, MotorStorm Apocalypse on Blu-ray, and an HDMI cable – you’ll also receive a copy of Resistance 3 on Blu-ray.” 
However, orders for the “special offer” need to be placed with retailers by Sept. 30, to avail of the deal. The display is to be released first to US gamers this fall. 
Although Sony did say in June it would bundle the 3D display package, one can’t help but wonder if the gamer getting anxious about the forthcoming release led it to throw in MotorStorm Apocalypse for good measure. 
This comes as Nintendo recently slashed price of 3D S “glasses free” console by over AU$100 here, which can now be bought for as little as $199 from some Aussie retailers – a massive $150 drop compared to its release price of $349 less than six months ago. 
“We are giving shoppers every incentive to pick up a Nintendo 3DS, from an amazing new price to a rapid-fire succession of great games,” Nintendo said last month. 
The gamer also slashed income projections a whopping 80% as sales of the flagship 3D console appear to be on the slide. 
 Set to be released in Australia this Christmas and designed to accompany the new Vita handheld, the ultrathin, 24″ gaming LED with 1080p resolution 3D Display is enhanced for gaming with SimulView technology, allows full HD screen action to each player in two-player mode, letting two people view different images on the screen at the same time. 
 

Other specs include 2 HDMI inputs allowing gamers attach PlayStation 3 or and PC and excellent audio sound via subwoofers. 

“Now is the time to jump into 3D gaming” Nguyen says, “with so many amazing titles coming to PS3 in 3D this holiday, like Uncharted 3: Drake’s Deception, Ratchet & Clank: All 4 One, The ICO & Shadow of the Colossus Collection.
Uncharted: Golden Abyss, Ruin, ModNation Racers and Capcom’s Street Fighter x Tekken are also set for release.

iPhone 5 Hits Sept 5?

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Another day, another i5 rumour. We’ll keep this quick but rumour has it iPhone 5 will hit on day 5 of September next.


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Where art thou, iPhone 5?

US carrier AT&T are said to be prepping staff for The Big Launch for that very fitting September 05 date, according to Boy Genius Report.

However, another reputable blog, AllThingsD has cited ‘sources’ indicating October will be the month of i5, contradicting this earlier report. 

And as reported recently by Smarthouse, Apple retail stores are on the prowl for temporary iPhone sales staff for an “exciting project” between August 16th-October 29th, so either of these days are possible (September 5th would be a cuter idea though).
The iPhone 5 is said to sport a dual core A5 processor a la iPad 2, 8MP camera and HD display, to name but a few specs. 
Hmm, although no one can be certain, BGR is not often wrong and as Apple refuse to confirm either way, iPhoners have just these mere speculations to feed off for now. 
 This comes as a startling 30% of consumers polled by Price Grabber in the States said they will buy fifth generation smartphone from the Californian whizzes – despite not knowing anything about it.
“Our survey data confirms the strong following Apple has built around its iPhone, with more than one-third of consumers planning to upgrade to the latest model only a little over a year following the release of the iPhone 4,” Graham Jones from PriceGrabber confirmed. 

 

 However, top of the wish list for iPhone consumers questioned was a better price and longer battery life. Steve Jobs, take note.

4G To Save Vodafone As Dumps Jobs?

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Can 4G save troubled Vodafone?

Vodafone is hoping its 4G LTE network, due to go live in “major metro” areas early 2013, can give it the resurgence it so desperately needs as it gets set to axe hundreds of jobs.

The red telco confirmed phase one of its new 4G LTE network roll out is complete, as it went on a PR offensive today, announcing staff cuts, a new management team and an “intensified network focus.”

The troubled telco has successfully completed the first test calls on its faster 4G LTE network, it said today.

The network is part of the troubled telco’s bid to “drive an improved customer experience” after the implosion of Voda’s 3G network last year.

Vodafone’s 4G service will be the last of the ‘Big 3′ telcos Long Term Evolution networks to go live – with Telstra’s 4G network a year old and Optus’ service in operation for several months.

The announcement comes as Vodafone Hutchinson Australia (VHA), lost 178,000 customers during the first half of 2012 and reported $131.3m loss.

Voda also said it is increasing network speeds and capacity and replaced radio equipment on its 3G+ network with the “latest technology”, which has led increased download speeds of up to 8 megabytes per second and less dropped calls.

Vodafone is to chop its workforce in a bid to cut costs, announcing a “significant reduction in the number of office roles across the country to enable a leaner, more effective operating model” it said in a statement today.

Vodafone Australia CEO Bill Morrow also announced a raft of staff changes including the appointment of  four new execs to its senior management team including: Brad Whitcomb, Director Strategy, Transformation and Business Development; Cliff Woo, Chief Technology Officer; Kim Clarke, Director Consumer Business Unit and James Marsh, Chief Financial Officer:

Read: Its Live: Vodafone 3G+ ‘On’.. But Where’s 4G?

“We’ve been reviewing the business in detail and we are excited about the opportunities yet realistic about the challenges,” Morrow said today.

 

“Our customers are telling us they’re starting to see a difference, further demonstrated by a 50 per cent reduction in complaints to the Telecommunications Industry Ombudsman and, notably, a reduction in network-related complaints.”

“We are heading in the right direction, but more needs to be done” admitting the “challenges” ahead, Murrow added.

“Vodafone will be a leaner, more effective business that is completely focused on what our customers want now and for the long term. We’ll give them the network and services they need and deserve.”

And not before time.

Apple Shiny Retina 13″ MacBook $1899

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“Completely changes what you expect from a notebook.” As it took the wrapping off the mini iPad, Apple also revealed a new 13″ MacBook Pro with shiny Retina screen.

The new Retina screen (already on iPhone 4S and iPad) boasts 4 million pixels onto its 13-inch display, or almost twice the pixels density of a HD TV at 227 pixels per inch, and has a 178-degree wide viewing angle.

Apple say the super bright screen ups the ante in the notebook race, already suffering at the hands of tablets like the iPad.

“With vivid colours, razor sharp text and more pixels than anyone else’s 15 or 17-inch notebooks, the Retina display completely changes what you expect from a notebook,” said Philip Schiller, Apple’s senior VP, Marketing.

The new Apple is also more mobile, 20% thinner at 1.9cm and at 1.62kg, weighs almost half a kg lighter than the current model.

“The 13-inch MacBook Pro is our most popular Mac, and today it gets completely reinvented with a new thin and light design, fast flash storage and a gorgeous Retina display,” Schiller said at the Apple launch in California, yesterday. 

The 13-inch Retina display uses IPS technology for less reflection and better contrast than the current generation, meaning it’s better for outdoor use.

Under the bonnet, the Macbook Pro features a 2.5 GHz Intel Core i5 processor but has the option of a faster 2.9 GHz Intel i7 processor, for a bit more cash.

The new Apple notebook also has Intel HD Graphics 4000, 8GB of 1600 MHz memory, and the option of a max of 768GB of flash storage (min. 128GB), which it claims is up to four times faster than rival notebook hard drives.

The new Pro runs OS X Mountain Lion, iCloud storage, and promises “up to” 7 hours of battery life. Connectivity wise, the 13″ Apple has two Thunderbolt ports, two USB 3.0 ports, and a new HDMI port.

 

It also sports a FaceTime HD camera, dual microphones, improved speakers, three-stream 802.11n Wi-Fi, Bluetooth 4.0, and a MagSafe 2 power port.

The MacBook Pro is available now (with Intel Core i5 and 128GB of storage) starting at AUD$1899, with 256GB storage AUD$2199 at Apple Online Store (http://store.apple.com/au), Apple’s retail stores and resellers.

Configure-to-order options include faster dual-core Intel Core i7 processors and flash storage up to 768GB.

Online Sales Up 25%, WA Big Spender

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Online sales “strong” but electronics remain “weak”, according to the NAB Online Sales Index


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Traditional retail sales totalled $220 billion to the 12 months to June 2012, while online retail spending hit $11.7 bn as both traditional and online experienced strong growth rates in recent months.

The NAB retail sales Index shows that Aussie retailers remain the dominant force in online as they take a multi-channel approach, developing an online presence alongside a traditional storefront as big names like Harvey Norman, Myer and David Jones have all been forced to do.

Online sales were “volatile” in early months of 2012 but now appear more stable over the last quarter, the Index also shows.

However, online sales figures are modest compared to bricks and mortar – just 5.3% of traditional retail transactions.

But bricks and mortar sales are growing by just 4.9% , while online is growing at five times that figure – at 25% – although from a modest base.

Domestic retailers continue to be the dominant force in online sales, says NAB, however sales in Household Goods & Electronics and Toys & Media categories have been “weak.”

This is because these products are discretionary in nature.

Local retailers accounted for 72% of all web sales in the past 12 months.

But is also appears Aussies are flocking to international retailers in big numbers with online sales to foreign stores growing at a faster pace than domestic sales – 29% year-on- year – compared to 24% for domestic sector.

 

Those aged in the 30s and 40s are among the biggest online consumers age group, while the under 30s are buying more from international retailers than any other age group.

Western Australia residents are among the biggest web consumers in Australia and the state outperformed the rest of the country, thanks to more buyers in their 30s, 40s and 50s.

However, NSW, Vic and Qld were also among the biggest spenders by state.

“Retailers are no longer viewing online simply as a sales and marketing channel but as a distribution and supply chain optimisation strategy,” the NAB Index states.