Wisconsin tells Foxconn no tax credits without new deal

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MADISON, Wis. — Wisconsin told Foxconn Technology Group on Monday that it won’t qualify for billions of dollars in state tax credits unless it strikes a new deal for a scaled-back factory complex.

State officials have told Foxconn since last year that it would not qualify for the tax credits without revisions to its 2017 contract because the scope of the envisioned factory has been reduced. President Donald Trump heralded the original deal as a sign of a revitalized American manufacturing economy, calling the envisioned plant “transformational” and the “eighth wonder of the world.”

The deal with Foxconn, the world’s largest electronics manufacturer, was announced by Trump at a White House ceremony and he traveled to Wisconsin in 2018 for the groundbreaking.

Foxconn signed a contract with Wisconsin under then-Gov. Scott Walker in 2017 to earn nearly $4 billion in state and local tax incentives for a $10 billion display screen manufacturing campus and plant that would employ up to 13,000 people. But Walker, a Republican, lost in 2018 to Democrat Tony Evers, who ran as a critic of the project.

After the deal was signed, Foxconn said it was downsizing the factory to what is known as a Generation 6 plant rather than a Generation 10.5 plant. The facility envisioned now would make smaller thin-film transistor liquid crystal display screens for cellphones and other devices, rather than the larger screens that were first proposed.

The letter sent Monday from Wisconsin Economic Development Corp. Secretary Melissa Hughes confirmed that from the state’s perspective, Foxconn’s new factory can’t get state tax credits unless the original contract is changed.

Foxconn officials said in a statement that the company has hired more than 520 people and invested $750 million in the state, and has been a willing participant in talks over terms of

Foxconn reduced factory won’t qualify for tax credits without new deal, Wisconsin says

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MADISON, Wis. — Wisconsin told Foxconn Technology Group on Monday that it won’t qualify for billions of dollars in state tax credits unless it strikes a new deal for a scaled-back factory complex.

State officials have told Foxconn since last year that it would not qualify for the tax credits without revisions to its 2017 contract because the scope of the envisioned factory has been reduced. President Donald Trump heralded the original deal as a sign of a revitalized American manufacturing economy, calling the envisioned plant “transformational” and the “eighth wonder of the world.”

The deal with Foxconn, the world’s largest electronics manufacturer, was announced by Trump at a White House ceremony and he traveled to Wisconsin in 2018 for the groundbreaking.

Foxconn signed a contract with Wisconsin under then-Gov. Scott Walker in 2017 to earn nearly $4 billion in state and local tax incentives for a $10 billion display screen manufacturing campus and plant that would employ up to 13,000 people. But Walker, a Republican, lost in 2018 to Democrat Tony Evers, who ran as a critic of the project.

After the deal was signed, Foxconn said it was downsizing the factory to what is known as a Generation 6 plant rather than a Generation 10.5 plant. The facility envisioned now would make smaller thin-film transistor liquid crystal display screens for cellphones and other devices, rather than the larger screens that were first proposed.

The letter sent Monday from Wisconsin Economic Development Corp. Secretary Melissa Hughes confirmed that from the state’s perspective, Foxconn’s new factory can’t get state tax credits unless the original contract is changed.

Foxconn spokeswoman Myranda Tanck had no immediate comment.

Hughes said in the letter to Jay Lee, the vice chairman of Taiwan-based Foxconn, that “Foxconn’s activities and investments in Wisconsin to date are not

Global watchdog proposes tax overhaul for Big Tech

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The OECD has been trying to find a compromise among more than 135 countries on digital taxes, spurred by longstanding demands from France and other European Union nations for U.S. digital giants like Amazon and Google to pay their fair share. The U.S., however, has resisted.

France’s plan for its own tax on digital business has angered U.S. President Donald Trump, who threatened taxes on French imports, but both sides are holding off until after the U.S. election to give time for negotiations.

If countries don’t all agree on the new tax rules, the OECD warned that there’s a risk of a global trade war triggered by many individual countries launching their own digital services taxes to help their economic recovery from the pandemic. The result is that global economic growth cut be cut by more than 1% annually.

“The last thing you want is, at this time of COVID-19, to have to deal at the same time with further trade tensions,” OECD Secretary-General Angel Gurria said in an online press briefing.

The OECD’s blueprints seek to reduce gaps and mismatches in tax rules between countries that are exploited by companies to avoid paying tax. They lay out new rules on where taxes should be paid, with the aim of making “digitally-intensive or consumer facing” multinational corporations pay taxes even in places where they do business remotely.

The new rules also call for countries to adopt a minimum tax rate, “in order to stop treaty shopping and companies going around finding venues that will treat them better,” Gurria said.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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IRS Adds QR Codes To Tax Bills

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The Internal Revenue Service (IRS) is adding barcode technology to its tax notices.

Starting this month, the IRS will add QR codes to certain tax notices. QR stands for quick response, since the code can convey a lot of information to your smartphone in a short period of time. It’s similar to a barcode but can transfer more information, including internet addresses.

QR codes are a combination of pixels. Each piece of the code conveys specific information – the combination can generate a lot of information. To read the information, you scan the QR Code with a smartphone.

The IRS is using the technology to allow taxpayers to scan codes on two particular notices, the CP14 or CP14 IA, with their smartphone and go directly to IRS.gov. From there, taxpayers can securely access their account, set up a payment plan or contact the Taxpayer Advocate Service. 

A CP14 notice is your first notification from the IRS that you owe money on unpaid taxes. It looks like this:

The IRS typically sends more than 8 million CP14 notices each year. Adding a QR code to the notices allows taxpayers to go directly to payment options, including installment agreements.

“These codes will give taxpayers immediate access to the most important information for them to pay their balances, set up payment agreements or reach out for help,” said Darren Guillot, the IRS Small Business/Self-Employed Deputy Commissioner for Collection and Operations Support. “We understand there’s a lot of information on the web, and we want to give taxpayers more secure tools that can more easily help them resolve their tax situations.”

“This will help make the entire process easier for taxpayers,” Guillot added.

If all goes well, this may be the first of many: the IRS is assessing the possibility of adding

EMERGING MARKETS-Thailand gains after govt adds tax deduction to stimulus push

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By Shruti Sonal

Oct 8 (Reuters)Thai stocks climbed nearly 1% on Thursday as the government took measures to boost consumption in its coronavirus-battered economy, leading gains across a handful of Asia’s big emerging markets.

With markets globally eyeing a tumultuous U.S. election campaign and roadblocks in passing stimulus in the world’s biggest economy, currencies across the region were subdued, with the Taiwan dollar again the main standout, rising almost 1%.

Thailand’s benchmark index .SETI hit its highest in over two weeks after officials added a tax deduction on purchases of goods and services to cash handouts and subsidies announced last month.

Deputy Prime Minister Supattanapong Punmeechaow said altogether the measures would push about 200 billion baht ($6.4 billion) into the economy in the last three months of this year.

The tourist-heavy economy has started receiving its first visitors this week after months of travel curbs and its markets have proven relatively immune to growing protests against the army-backed government.

“Overall, the outlook for the country’s economy in the first quarter should be better,” said Sunthorn Thongthip, a Thailand-based strategist at Kasikorn Securities.

In the second big public launch this year, Thailand’s Siam Cement Group Packaging Pcl (SCGP) was set to raise up to $1.5 billion after pricing shares for its initial offering at the top end of its range.

Reports overnight of the Trump administration exploring restrictions on China’s Ant Group and Tencent Holdings 0700.HK over national security concerns weighed on sentiment in trade-reliant Singapore, said Kelvin Wong, an analyst at CMC Markets.

“The news can explain the negative feedback on the Singapore markets given that we have significant relations with China and most of the Chinese tech firms have set up their operational hubs in Singapore,” added Wong.

Markets in China, the region’s biggest market and