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A minister has told Sky News he would like staff in his department to be coming into the office “at least” two or three days a week, after the government insisted it would follow a “cautious” approach to civil servants returning to their desks.

Business Secretary Kwasi Kwarteng was asked about his views on people working from home amid the COVID-19 pandemic.

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EMBARGOED TO 0001 FRIDAY APRIL 9 File photo dated 04/03/20 of a woman using a laptop on a dining room table set up as a remote office to work from home. Fewer than one in seven leaders in some of the UK's biggest companies have said they expect a full-time return to offices by the end of this year, according to a new survey. Issue date: Friday April 9, 2021.
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Current government guidance says that ministers are ‘no longer instructing people to work from home if they can’

It comes after an unnamed minister was quoted by one newspaper as saying officials should have their pay reduced if they refuse to come back to the office.

Speaking to Kay Burley, Mr Kwarteng said: “I think we should try to come in maybe 2-3 days a week at least.

“But it’s a gradual process, no-one is being forced back against their will.

“You’ve got to make the environment very safe but I think it is probably quite a good thing to spend more time in the week at work, that’s just a personal view.”

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Mr Kwarteng added that ministers would not “dictate” to businesses when it comes to working arrangements, but stressed the benefits of “flexibility” and being able to go into the office or workplace.

“I think if you’re trying to make a career it probably makes sense to actually meet colleagues and build a network and learn from other people and I think that’s probably best done in the workplace,” he added.

Chancellor Rishi Sunak last week spoke of the benefits of working in an office, stressing the positive impact it had on his early career.

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Current government guidance, which came into effect when most COVID restrictions were lifted on 19 July, states that ministers are “no longer instructing people to work from home if they can, so employers can start to plan a return to workplaces”.

“During this period of high prevalence, the government expects and recommends a gradual return over the summer,” it adds.

“You should discuss the timing and phasing of a return with your workers.”

But a minister quoted by the Daily Mail advocated a more hardline approach to ending home working.

“People who have been working from home aren’t paying their commuting costs so they have had a de facto pay rise, so that is unfair on those who are going into work,” they reportedly said.

“If people aren’t going into work, they don’t deserve the terms and conditions they get if they are going into work.”

Chancellor of the Exchequer Rishi Sunak after delivering his 'Mansion House' speech at the Financial and Professional Services Address, previously known as the Bankers dinner, at Mansion House in the City of London. Picture date: Thursday July 1, 2021.
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The chancellor has recently spoken of the benefits of working in an office

The minister also suggested that “people who want to get on in life will go into the office because that’s how people are going to succeed”.

A union leader criticised the comments, describing them as “insulting” and a demonstration that ministers are “out of touch with modern working practices”.

Dave Penman, general secretary of the FDA civil service union, said: “What should matter to ministers is whether public services are being delivered effectively, not where individual civil servants are sitting on a particular day.”

At the weekend it was reported that plans to require staff at the Department of Health and Social Care to be based partly in the office from next month have been scrapped.

According to The Guardian, the department had put staff on notice that from September the “minimum expectation” would be that they should be in the office for a minimum of four and maximum of eight days a month, unless there was a business or wellbeing reason.

But the department’s director of workplace and director of HR told staff on Thursday that “it’s clear that we cannot proceed with this phase on the planned timescale”.

A government spokesperson said: “The Civil Service continues to follow government guidance, as we gradually and cautiously increase the number of staff working in the office.

“Our approach, which builds on our learning during the pandemic, takes advantage of the benefits of both office and home-based working across the UK.”

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Brazil weighs tax on international crypto transfers as it aligns rules with CARF

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Brazil weighs tax on international crypto transfers as it aligns rules with CARF

Brazil is reportedly weighing a tax on the use of cryptocurrencies for international payments as it moves to adopt a global crypto tax reporting data exchange framework.

A Tuesday Reuters report, citing “officials with direct knowledge of the discussions,” claims that the Brazilian government aims to tax cryptocurrency use for international payments.

During the confidential talks, representatives of the country’s finance ministry reportedly expressed interest in expanding the Imposto sobre Operações Financeiras (IOF) tax to include some digital asset-based cross-border transactions.

Brazil’s Federal Revenue Service also announced yesterday that its reporting rules for crypto-asset transactions will be aligned with the global Crypto-Asset Reporting Framework (CARF), in a legal act dated Nov. 14.

This would provide the tax department with access to citizens’ foreign crypto account data through the Organisation for Economic Co-operation and Development’s global reporting and data-sharing standard. The move comes as no surprise, with Brazil having signed a statement in favor of CARF in late 2023.

The move follows Monday reports that the White House is reviewing the Internal Revenue Service’s proposal to join CARF and a similar move by the Council of the European Union, the collective body of EU27 finance ministers. In late September, the United Arab Emirates also signed an agreement to join the data-sharing program.

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A Branch of Brazil’s Federal Revenue Service. Source: Wikimedia

Related: Why Brazil is using Bitcoin as a treasury asset and what other nations can learn

Brazil moves to close a crypto loophole

Cryptocurrencies are currently exempt from the IOF tax; however, crypto capital gains are subject to a 17.5% flat tax. IOF is a federal tax charged on financial transactions — mainly foreign exchange, credit, insurance and securities operations.

The two sources cited by Reuters said the move aims to close a loophole while also boosting public revenue. The current exclusion of digital assets from IOF is viewed as a loophole, as those assets — especially stablecoins — can be used as a de facto foreign-exchange or payment rail while skirting the taxes imposed on traditional means to do so.

The officials said the rules aim to “ensure that the use of stablecoins does not create regulatory arbitrage vis-a-vis the traditional foreign-exchange market.”

Related: Brazilian solar firm Thopen considers Bitcoin mining to absorb surplus power

Brazil clamps down on crypto loopholes

The move is in line with the Brazilian central bank’s introduction this month of new rules treating some stablecoin and crypto wallet operations as foreign exchange operations. The new rules extend existing rules on consumer protection, transparency and Anti-Money Laundering to crypto brokers, custodians and intermediaries. 

In April, Brazilian judges were authorized to seize cryptocurrency assets from debtors, closing another loophole. “Although they are not legal tender, crypto assets can be used as a form of payment and as a store of value,” a translated version of the Superior Court of Justice’s memo read.

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