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Rishi Sunak will meet with his new cabinet today after a dramatic shakeup of his top team saw David Cameron make an unexpected return to frontline politics.

In a major gamble to revive his faltering premiership, the prime minister gave the former Tory leader a peerage in order to make him foreign secretary.

It means the now Lord Cameron will be back around the Cabinet table on Tuesday for the first time since he stood down as prime minister and quit as an MP after losing the Brexit referendum in 2016.

The reshuffle has risked inflaming Conservative divisions as it included the sacking of controversial home secretary Suella Bravermana popular figure on the right of the party.

Ms Braverman was purged after she accused the Metropolitan Police of left-wing bias in its handling of protests in an article for The Times which was not fully authorised by Number 10. She had also come under criticism in previous weeks for saying that homeless people living in tents was a “lifestyle choice”.

Pic: Simon Dawson / No 10 Downing Street
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Pic: Simon Dawson / No 10 Downing Street

David Cameron is appointed Secretary of State for Foreign, Commonwealth and development Affairs and is met by Permanent Under Secretary, Sir Philip Barton
Pic:Ben Dance / FCDO
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David Cameron with permanent under secretary Sir Philip Barton. Pic:Ben Dance / FCDO

Former minister Andrea Jenkyns submitted a furious letter of no confidence in Mr Sunak to the Tory backbench 1922 Committee in the wake of the decision.

She argued that Ms Braverman “was the only person in the cabinet with the balls to speak the truth of the appalling state of our streets and a two-tier policing system that leaves Jewish community in fear for their lives and safety”.

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“If it wasn’t bad enough that we have a party leader that the party members rejected, the polls demonstrate that the public reject him, and I am in full agreement. It is time for Rishi Sunak to go,” the MP added.

The letter does not in itself threaten to provoke a vote of no confidence in the Conservative leader, as the threshold stands at 15% of sitting Tory MPs.

But Number 10 may be wary of more to come after a group of hardline Tory MPs held a meeting in parliament on Monday where concerns were shared about the reshuffle.

Suella Braverman leaves her home
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Suella Braverman leaves her home before the reshuffle

Around 12 MPs, including Tory deputy chairman Lee Anderson and former cabinet minister Simon Clarke attended in person at the New Conservatives grouping led by Danny Kruger and Miriam Cates.

Other MPs to criticise Ms Braverman’s removal include Sir Jacob Rees Mogg, who warned that the Conservatives “are in danger” of losing votes to the right-wing Reform party.

The former Brexit minister said while Ms Braverman was prepared to leave the European Convention on Human Rights (EHRC) to enact the controversial Rwanda deportation plan, currently held up in the courts, her successor James Cleverly has signalled he does not want to do this.

“There is a distinct watering down on the migration policy,” he told BBC Newsnight.

Ms Braverman has said little about her departure so far but in a potentially ominous warning to Mr Sunak, said she would have more to say “in due course”.

Meanwhile former cabinet secretary Therese Villiers told the Politics Hub with Sophy Ridge she would be a “force to be reckoned with” on the backbenches.

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PM ‘pleased’ to appoint Cameron

Mr Cleverly, the former foreign secretary, has insisted he will be just as committed to the government’s “stop the boats pledge” in his new role.

His appointment is likely to face more scrutiny in the coming days, with a Supreme Court judgement due on Wednesday on whether the much-delayed Rwanda plan is lawful.

But for the moment it has largely been overshadowed by the political comeback of Lord Cameron.

Cameron comeback massive shock

The appointment was a massive shock in Westminster, not just because of the return of a former prime minister to government – the first since Alec Douglas-Home in the 1970s – but also because of his views on China.

During the Cameron administration there was a “golden era” of UK-China co-operation, something Mr Sunak described as “naive” last year following growing tensions with Beijing.

Lord Cameron has also been critical of Mr Sunak’s decision to scrap the northern leg of HS2, while the prime minister used his Tory conference speech to distance himself from the legacy of his predecessors.

Read More:
Sunak reshuffle shows he’s done with playing it safe
Rishi Sunak’s claim to be ‘change candidate’ is tested by return of David Cameron

But the former prime minister made it clear he backs Mr Sunak and will work with him to help the Tories win the general election, which is expected next year.

The new foreign secretary said: “Though I may have disagreed with some individual decisions, it is clear to me that Rishi Sunak is a strong and capable prime minister, who is showing exemplary leadership at a difficult time.”

The appointment has raised questions about how he will be held to account if he can’t answer to MPs in the Commons.

He also faces questions over the Greensill affair, in which he privately lobbied ministers in an attempt to win Greensill Capital access to an emergency coronavirus loan scheme.

This was seized on by opposition MPs who criticised the “clown show” reshuffle, which also saw Steve Barclay take Therese Coffey’s job as environment secretary, while Victoria Atkins became health secretary.

In another key appointment, GB News presenter and former work and pensions secretary Esther McVey was brought back into government as a minister without portfolio, reportedly to “speak common sense” on behalf of the government and push forward its “anti-woke” agenda, in a conciliatory move to the Tory right.

However many of the party’s One Nation MPs – closer to the centre of politics – may welcome the return of Lord Cameron, who secured them two victories at general elections and is well known internationally.

Former health secretary Matt Hancock said of the reshuffle: “Excellent for the Conservatives, showing Rishi Sunak will fight the election on the centre ground.”

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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.

Brazil
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.

Magazine: Best and worst countries for crypto taxes — plus crypto tax tips