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Johnson ‘threatened to demote Sunak’ over leaked letter

It came shortly before the infamous “traffic light” rules were reviewed on Thursday. In his letter, Sunak said that the UK was “out of step” with the rest of the world…reports Asian Lite News.

UK Prime Minister Boris Johnson was said to have “threatened to demote Rishi Sunak to Health Secretary” after the Chancellor called for easing of travel restrictions, as per a note written him found its way into the public domain last weekend, Daily Mail reported.

The report said the UK government has been plunged into conflict as Johnson and Sunak clash over travel restrictions and green reforms, with the Chancellor eager for a tough spending review and the PM looking to avoid austerity measures.

It came shortly before the infamous “traffic light” rules were reviewed on Thursday. In his letter, Sunak said that the UK was “out of step” with the rest of the world.

The Chancellor is now preparing for a tough spending review later this year as he attempts to repair the public finances following the coronavirus crisis. That could put him on collision course with a Prime Minister who has promised there can be no return to austerity.

The PM told his allies that by writing the letter, which was copied to Transport Department, it was “bound” to be leaked – and fumed that he could move Sunak to Health, where former Chancellor Sajid Javid became the Secretary six weeks ago.

Johnson was said to have been “apoplectic”, and “raging” when he met senior Downing Street aides on Monday, The Sunday Times reported.

He suggested sacking Sunak following the Chancellor’s remarks calling for an easing of travel restrictions due to the threat they pose to the economy.

And in another sign of division, the Prime Minister’s green agenda hit a stumbling block amid growing fears that it will hit poorest households the hardest, with Sunak thought to be leading push-back against Johnson’s commitment to go net-zero by 2050.

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‘Sunak’s in-laws face £5.5m demand in Amazon India tax dispute’

The emergence of case follows small traders claim they are being squeezed out of business by the multinational’s selling practices and that the US retailer’s 1 billion-pound-a-year venture with the chancellor’s father-in-law…reports Asian Lite News

A joint venture between UK Chancellor Rishi Sunak’s billionaire in-laws and the internet retailing giant Amazon is in a multimillion-pound dispute with the Indian tax authorities, a Guardian investigation has found.

The disclosure adds to the list of legal battles currently involving the joint venture, following news on Friday that India’s competition commission has been given permission to relaunch an investigation into Amazon.

The Guardian reported that small traders claim they are being squeezed out of business by the multinational’s selling practices and that the US retailer’s 1 billion-pound-a-year venture with the chancellor’s father-in-law, the technology entrepreneur NR Narayana Murthy, could be bypassing Indian foreign ownership rules.

N R Narayana Murthy(Wikipedia)

Amazon says it is operating in full compliance with local laws.

The emergence of the tax case follows last week’s G7 discussions, when the finance ministers of the world’s largest economies agreed a global deal designed to make tech companies pay more tax.

ALSO READ: Sunak warns of taxing times ahead

In India, foreign companies are banned from running an online retailer that holds inventory and then sells the goods directly to Indian consumers online. So, instead, the Amazon.in website is run as a “marketplace”, with Indian retailers selling their products via the site in return for a fee to the US giant, the report said.

One of the largest sellers on Amazon.in is a company called Cloudtail, a business indirectly 76 per cent — owned by an investment firm controlled by the Murthy family. The remaining quarter of Cloudtail is owned by Amazon.

An analysis of the company’s accounts and activities by the Guardian shows that Cloudtail: faces a 5.5 million pound demand — including “interest and penalties” — from India’s tax authorities has paid “meagre” taxes over the past four years, while using a business model described as Amazon “on steroids” has filled its top two posts — chief executive and finance director — with Amazon executives, while Cloudtail’s holding company, Prione, has also been run by former Amazon managers.

Cloudtail’s most recent accounts state: “The company has received a show cause notice in the current year from Directorate General of Goods and Service Tax Intelligence amounting to Rs 5,455 lakh (5.5 million pound) along with interest and penalties for service tax-related matters.”

It is not known precisely what the tax dispute is about. The company said it was contesting the bill, and added: “Since this matter is sub judice, we are unable to comment any further.”

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