CR IP TI ON BS SU
TUESDAY, DECEMBER 17, 2013
New ICM chief Olaim calls for reforms, fighting graft
40 PAGES
NO: 16019
150 FILS
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www.kuwaittimes.net
SAFAR 14, 1435 AH
S Sudan says coup defeated after heavy fighting
Bachelet promises reforms after landslide win
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Spurs sack Villas-Boas after home humiliation
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Kuwait, Iraq ink deals on investments, navigation Arrest warrants issued for those who fired mortars: Iraqi FM
Max 14º Min 05º High Tide 13:07 & 23:14 Low Tide 06:37 & 18:05
The terror of taxation By Velina Nacheva KUWAIT: No other subject matter bedevils the expatriate population more in Kuwait, and in the Gulf at large, than taxation. There have been a flood of proposals and debates about the introduction of income or remittance tax. So far, despite a plethora of proposals, nothing has been agreed upon or implemented. Efforts to diversify government income - or at least create a bargaining chip with local corporates continues apace, however. The latest taxation news is tied to plans to impose an income tax on “national firms”, a proposal the Finance Ministry is now preparing, according to a recent Bloomberg report. Kuwait wants to extend the current corporate income tax to include Kuwaiti firms. Currently, the government taxes all foreign firms doing business in Kuwait at 15 percent of the net annual profit. Income tax is levied under Law No. 2 of 2008 and is applied to foreign companies that are conducting trade or business within Kuwait directly or through a local agent. According to the law, companies that are fully owned by Kuwaitis or Gulf nationals are exempt from taxation. Taxation has been on the government’s wish list in Kuwait since 2006. Almost all proposals are met with local opposition though international agencies including the IMF have warned of excessive public spending and over-dependency on a single revenue source. Continued on Page 13
2 Gitmo Saudis sent home WASHINGTON: Two inmates from the US prison at Guantanamo Bay in Cuba have been sent home to Saudi Arabia, the Pentagon said yesterday, bringing the total number remaining there to 160. President Barack Obama is trying to accelerate repatriations in order to close the prison, nearly 12 years after it was opened at a US naval base on the southeastern tip of the island. The prison was opened in the wake of the Sept 11, 2001 attacks on the United States to house suspects captured by US forces and spies in anti-terror operations around the world. Its use has been controversial and hurt the United States’ global standing. Detainees have complained of mistreatment, and many were held for years without trial while others faced military tribunals. Lawmakers are working on measures to ease restrictions on sending detainees home or to third countries, but plans to close the facility have been thwarted by a ban on transferring them to US soil. In the meantime, Obama’s special envoys on closing the prison are working within the current regulations to send inmates home. Saad Muhammad Husayn Qahtani and Hamood Abdulla Hamood were designated for transfer after a “comprehensive review” of their cases by an interagency task force, Pentagon spokesman Todd Breasseale said. The Defense Department’s special envoy for Guantanamo, Paul Lewis, said the US and Saudi Arabia worked together to ensure “these transfers took place with appropriate security assurances and in a way that is consistent with our humane treatment policy”. “The US has made real progress in responsibly transferring Continued on Page 13
Bahrain ready for Gulf union MANAMA: Bahrain’s king said yesterday he is strongly in favour of a Saudi proposal to upgrade the Gulf Cooperation Council into a union. “Bahrain is ready from this day for the declaration of the union, to assert our firm will and our solid determination,” King Hamad said in an address on the occasion of the kingdom’s national day. “We look forward to the call for a special Summit in Riyadh to announce the establishment of this union,” he added. The six conservative Arab members of the GCC which includes Saudi Arabia, Bahrain, Kuwait, Qatar, the United Arab Emirates and Oman - sit on 40 percent of the world’s oil and a quarter of its natural gas. The proposal to upgrade the bloc from a coordination council to a union was put forward by Saudi King Abdullah in 2011. Bahrain’s Sunni monarchy, which at the time was grappling with Arab Spring-inspired protests by its Shiite majority, strongly supported the proposal. But other Gulf states have shown less enthusiasm, with Oman threatening last week to quit the loose alliance if the union proposal is pursued. Divisions have surfaced within the bloc -established in 1981 to put up a united front against Iran - just as Tehran has managed to break its isolation, reaching a preliminary deal with world powers on its controversial nuclear program. — AFP
KUWAIT: Iraqi Foreign Minister Hoshyar Zebari (left) and Kuwaiti Foreign Minister Sheikh Sabah Al-Khaled Al-Sabah sit side-by-side during a joint high committee meeting between Kuwait and Iraq at the Foreign Ministry yesterday. — Photo by Yasser Al-Zayyat By B Izzak KUWAIT: Kuwait and Iraq yesterday signed three agreements to encourage and protect investments in both countries and to regulate navigation in Khor Abdullah, where Kuwait’s key Mubarak Al-Kabeer Port is being constructed. Foreign Minister Sheikh Sabah Al-Khaled Al-Sabah said the agreements come to culminate improving relations between the two countries which have seen important developments in the
past few years that included exiting Iraq from Chapter 7 of the United Nations Security Council. Two agreements were signed to encourage and protect investments between the two countries, while the third agreement was for regulating maritime navigation in Khor (estuary) Abdullah where Kuwait is building a state-of-the-art container harbour to which Baghdad had expressed some opposition. No details were provided Continued on Page 13
Israeli soldier killed on Lebanon border
RAS AL-NAQOURA: Israeli soldiers stand guard near the border between northern Israel and Lebanon yesterday. — AP
TYRE, Lebanon: The UN peacekeeping force in south Lebanon said yesterday that a border shooting that killed an Israeli soldier appeared to be “an individual action”, as officers of the two armies met. The UN Interim Force in Lebanon (UNIFIL) statement came after a meeting it convened at its post near the Ras alNaqoura border crossing, bringing together senior Lebanese and Israeli army officers. Israel accused a Lebanese army soldier of opening fire across the sensitive border separating the two countries and killing one of its troops on Sunday. “All the circumstances of this incident are not clear at this time, but preliminary findings indicate that it was an individual action by a soldier in contravention of the existing operational rules and procedures,” said the UNIFIL commander, Major General Paolo Serra. He said he was “encouraged by the full cooperation... received from them (the two sides) in restoring calm in the area”. “I stressed at the meeting that this must remain an isolated incident.” The shooting was the first time an Israeli soldier had been killed along the border with Lebanon in more than three years, sparking calls for calm from UN Secretary General Ban Ki-moon. But commentators said it was unlikely to spark a confrontation. The Israeli army said the soldier was shot by Lebanese troops as he was driving a civilian vehicle along a section of the border Continued on Page 13
Harvard evacuates, cancels exams
CAMBRIDGE, Massachusetts: SWAT team officers arrive at a building at Harvard University yesterday. — AP
NEW YORK: A bomb scare forced Harvard University yesterday to evacuate four buildings, call in police and cancel final exams underway at the elite US university in the northeastern town of Cambridge. The university ordered the evacuations at 9:02 am at the Science Center, the Thayer dormitory, the Sever classroom and lecture hall and the Emerson building, home to the philosophy department. Harvard tweeted that there had been “NO reports of explosions” but police were immediately scrambled to the sprawling, snowy campus where witnesses tweeted of helicopters circling overhead. But four hours after the original alert, the university said two of the buildings had been cleared and students could return. Sever and the Science Center, which is home to the mathematics, statistics and history of science departments, were still closed, it announced on its website. Federal and state officials have also been drafted in to assist with the investigation
although none of the reports of explosives have yet been confirmed. Harvard University police have “no reason to believe there is a threat to any other site on campus”, the university said. The Ivy League school is one of the most prestigious universities in the world. It has around 21,000 students and dominates the Massachusetts town of Cambridge near Boston. Sam Weinstock, incoming president of student newspaper the Harvard Crimson, told CNN that final exams scheduled yesterday in three of the affected buildings had been canceled. “Students were removed from those exams, taken to the freshman dining hall where they were told that exams would be canceled,” he said. Asked about growing media speculation on whether the call could have been a hoax, Weinstock refused to speculate. “We have no idea what the nature of the call was or what the nature of the threat is now,” he told CNN. University of Massachusetts Boston also
announced a brief evacuation of one building yesterday over reports of a possible gunman. The alert was declared false within minutes. Yesterday’s scares came three days after an American schoolboy armed with a shotgun opened fire and wounded two fellow students before killing himself at a high school in Colorado. They also came less than a month after Harvard’s great rival Yale went on a fourhour lockdown after a hoax caller claimed his roommate was planning to shoot people on the campus. Teams of police scoured the sprawling Yale campus in New Haven, Connecticut but there were never any reports of shots fired nor of any injuries. Nor was the presumed gunman found. Harvard was founded in 1636 and has educated current and former leaders from all over the world, including a long list of American presidents such as Barack Obama and John F Kennedy. — AFP