Facebook IPO to make Zuckerbeg pay $903-mn in taxes

The US tax authorities are in for a major windfall from Facebook chief Mark Zukerberg, as the upcoming IPO of the social networking giant could make him pay in taxes as much as USD 903 million (about Rs 5,000 crore).
Interestingly, his total estimated tax payout amounts to more than 85 per cent of the total proceeds of about USD 1.045 billion Zuckerbeg is expected to rake in from part sale of his own shares in Facebook -- leaving him with a net cash proceeds of just about USD 142 million (about Rs 700 crore).
Facebook's IPO is slated to hit the market later this year and could fetch in between USD 77-96 billion, depending on the investors' appetite.
The IPO roadshow, which would seek to attract investors for putting in their money in the social media behemoth, would begin tomorrow.
As per an analysis by US-based research firm, PrivCo, the 27-year old Zukerberg stands to pay as much as USD 714 million in national taxes and another USD 189 million as state taxes to California, while still pocketing USD 142 million.
"According to our calculations, Mark Zuckerberg will be paying an estimated USD189 million payment to the State of California this year as a result of the Facebook IPO, expected to be completed this month," PrivCo Founder & CEO Sam Hamadeh said.
PrivCo assumes total tax of 43 per cent, a combination of maximum federal tax of 36 per cent and the maximum California tax of 9.3 per cent, less partial federal deductions for state taxes paid.
"He will have to incur a combined state and federal tax rate of 43 per cent on the USD 2.1 billion for a total tax payment of USD 903 million incurred at the IPO date," PrivCo said in its report.
The agency added that the tax proceeds from Zuckerberg will help the State of California deal with budget deficits.
"The funds are badly needed as California continues to suffer from budget deficits, and could not have come at a better time for the state," Hamadeh said.
Zuckerberg, who holds a total of 533.8 million shares, would sell 30.2 million shares in the IPO -- garnering about USD 1.05 billion in cash at the high end of the proposed price range of USD 28-35 for the sale of shares. The 30.2 million shares, PrivCo noted, would be used to finance the tax liability due at the time of the IPO.
The remaining 504 million shares held by the young CEO after the IPO would be worth USD 17.6 billion, if Facebook hits the top of its IPO price range.
"More taxes will come due as more shares are sold beginning in December and well into 2013 after the traditional 180-day post-IPO 'lock-up' period expires and employees can sell even more shares, resulting in new capital gains taxes to California - and the IRS (Internal Revenue Service) - with each new stock sale," Hamdeh noted.

ਜਸਵਿੰਦਰ ਸਿੰਘ ਐਡਵੋਕੇਟ ਦਾ ਐਡਮਿੰਟਨ, ਕੈਨੇਡਾ ਵਿਖੇ ਨਿੱਘਾ ਸਵਾਗਤ

ਜਸਵਿੰਦਰ ਸਿੰਘ ਐਡਵੋਕੇਟ ਨੂੰ ਸਨਮਾਨਿਤ ਕਰਦੇ ਵਿਧਾਇਕ ਪੀਟਰ ਸੰਧੂ, ਵਿਧਾਇਕ ਨਰੇਸ਼ ਭਾਰਦਵਾਜ

ਐਡਮਿੰਟਨ, 3 ਮਈ - ਪਿਛਲੇ ਦਿਨੀਂ ਕੈਨੇਡਾ ਦੀ ਫੇਰੀ 'ਤੇ ਆਏ ਐਡਵੋਕੇਟ ਜਸਵਿੰਦਰ ਸਿੰਘ ਬਾਘਾ ਪੁਰਾਣਾ ਐਡਮਿੰਟਨ ਨਿਵਾਸੀ ਸ਼ਮਸ਼ੇਰ ਬਰਾੜ ਦੇ ਸੱਦੇ 'ਤੇ ਐਡਮਿੰਟਨ ਪੁੱਜੇ। ਉਨ੍ਹਾਂ ਦੇ ਸਵਾਗਤ ਲਈ ਬਰਾੜ ਪਰਿਵਾਰ ਨੇ ਸਥਾਨਕ ਮਹਾਰਾਜਾ ਹਾਲ ਵਿਖੇ ਪ੍ਰੋਗਰਾਮ ਕੀਤਾ। ਸਮਾਗਮ ਦੀ ਪ੍ਰਧਾਨਗੀ ਕਰਦਿਆਂ ਐਡਵੋਕੇਟ ਜਸਵਿੰਦਰ ਨੇ ਪੁੱਜੇ ਸ਼ਹਿਰ ਵਾਸੀਆਂ ਨੂੰ ਗੰਭੀਰਤਾ ਨਾਲ ਦੱਸਿਆ ਕਿ ਜਦੋਂ ਵੀ ਵਿਦੇਸ਼ਾਂ 'ਚ ਵਸਦੇ ਭਾਈਚਾਰੇ ਨੂੰ ਆਪਣੀ ਚੱਲ-ਅਚੱਲ ਜਾਇਦਾਦ ਨੂੰ ਵਿਕਰੀ ਕਰਨ ਦਾ ਹੱਕ ਆਪਣੇ ਰਿਸ਼ਤੇਦਾਰਾਂ ਨੂੰ ਨਹੀਂ ਦੇਣਾ ਚਾਹੀਦਾ ਸਿਰਫ਼ ਉਨ੍ਹਾਂ ਨੂੰ ਆਪਣੀ ਜਾਇਦਾਦ ਨੂੰ ਲੀਜ਼, ਸਾਂਝ ਸੰਭਾਲ ਸਬੰਧੀ ਹੱਕ ਦੇਣੇ ਚਾਹੀਦੇ ਹਨ। ਅੱਜਕਲ੍ਹ ਪੰਜਾਬ ਵਿਖੇ ਜਾਇਦਾਦਾਂ ਲੱਖਾਂ ਤੋਂ ਕਰੋੜਾਂ ਦੀਆਂ ਬਣ ਚੁੱਕੀਆਂ ਹਨ। ਇਥੇ ਵਸਦਾ ਭਾਈਚਾਰਾ ਪਹਿਲਾਂ ਆਪਣੀ ਜਾਇਦਾਦ ਨੂੰ ਪੰਜਾਬ ਬੈਠੇ ਪਰਿਵਾਰਾਂ ਨੂੰ ਸਹਾਇਤਾ ਵਜੋਂ ਉਸ ਦੀ ਆਮਦਨ ਵਰਤਣ ਲਈ ਦਿੰਦਾ ਹੈ ਪ੍ਰੰਤੂ ਬਾਅਦ ਵਿਚ ਪੰਜਾਬ ਵਸਦਾ ਪਰਿਵਾਰ ਉਸ ਜਾਇਦਾਦ ਨੂੰ ਆਪਣੀ ਹੀ ਸਮਝ ਬੈਠਦਾ ਹੈ ਜਿਸ ਕਾਰਨ ਵਿਦੇਸ਼ੀਆਂ ਦੀ ਜਾਇਦਾਦਾਂ ਉੱਪਰ ਕਬਜ਼ੇ ਆਮ ਹੋ ਜਾਂਦੇ ਹਨ। ਇਸ ਕਰਕੇ ਵਿਦੇਸ਼ੀ ਬਾਅਦ ਵਿਚ ਪੰਜਾਬ ਦੁਬਾਰਾ ਜਾਣ ਦਾ ਨਾਂਅ ਤੱਕ ਨਹੀਂ ਲੈਂਦੇ। ਸਮਾਗਮ ਵਿਚ ਐਡਵੋਕੇਟ ਜਸਵਿੰਦਰ ਸਿੰਘ ਨੂੰ ਵਿਧਾਇਕ ਪੀਟਰ ਸੰਧੂ, ਸਿੱਖ ਫੈਡਰੇਸ਼ਨ ਦੇ ਕਰਨੈਲ ਸਿੰਘ ਦਿਉਲ, ਵਿਧਾਇਕ ਨਰੇਸ਼ ਭਾਰਦਵਾਜ ਵੱਲੋਂ ਸਨਮਾਨ ਚਿੰਨ੍ਹ ਵੀ ਭੇਟ ਕੀਤਾ ਗਿਆ। ਇਸ ਮੌਕੇ ਸ਼ਮਸ਼ੇਰ ਬਰਾੜ, ਹੈਰੀ ਬਰਾੜ, ਤੀਰਥ ਬਰਾੜ, ਬਲਦੇਵ ਧਾਲੀਵਾਲ ਤੋਂ ਇਲਾਵਾ ਦਰਜਨਾਂ ਨਿਵਾਸੀ ਹਾਜ਼ਰ ਸਨ।

Runaway couples cautioned

Think twice before ‘rebellion marriage’, says High Court

Chandigarh, April 12
Cautioning runaway couples against running down established social norms while racing towards the hymenal altar, the Punjab and Haryana High Court has asked them to “think twice” before according precedence to individual interests over that of society’s.

The assertion by Justice Rameshwar Singh Malik, aimed at easing tension between interests of individuals and a group as a whole, came while dealing with nearly a dozen protection petitions filed on a single day by runaway couples.

In one of the petitions, Kirti Goyal and another petitioner had sought directions to the State of Punjab and other respondents to protect their life and liberty on the ground that they “ had tried to persuade their parents and relatives, but in vain.”

Referring to Supreme Court judgments on the right to life and liberty guaranteed under Article 21 of the Constitution, Justice Malik asserted: “It is equally important to note that freedom of the individual is not absolute, but subject to the established and time-tested social norms of a civilised society.

“Co-existence of freedom of the individual and social control is sine-qua-non (an essential element or condition) for sustainable progress of society and this is also an integral part of our Constitutional philosophy.

“Therefore, though the petitioners are entitled to protection to their life and liberty in the given facts and circumstances of the case, but at the same time, it is also expected of them and other young citizens like them that before running away from their homes for performing this type of rebellion marriage, they must think twice, besides, listening carefully to their parents who are not their enemies, but genuine well- wishera.”

Justice Malik also said: “Let us welcome the dynamic social change and evolution, but only subject to the social control and moral values which are centuries old and have not lost their shine even today ”.

Before parting with the orders in almost all the cases on the issue, Justice Malik said: “It is also made clear that this order shall not entitle the petitioners for any protection against their arrest or continuance of any criminal proceedings, if they are found involved in the commission of any cognisable offence...”

Punjab to ban mobile phones inside jails

Jail Staff to get walkie-talkie sets

Patiala, April 12
Following complaints of illegal use of mobile phones by prisoners, the Punjab Jails Department has decided to completely ban carrying of mobile phones inside the jails. As an alternative, jail officials will be provided walkie-talkie sets to ensure that even they do not carry their personal mobile phones inside the jails.

Sources said while a move of installing jammers inside the jails was still in the pipeline, officials had been briefed about banning the use of mobile phones inside the jails. "Mobile phones will be banned inside jails even for superintendents and others staff who will be provided walkie-talkie sets," they said.

An official said, "The state government's pilot project to install jammers in all jails is yet to see light of the day due to shortage of funds. However, a sum of Rs 4 crore has been earmarked for modernisation of jail equipment, including modern communication devices for jail staff".

In the recent past, over 1,000 mobile phones had been recovered from jail inmates across the state.

In a recent case, allegations were levelled against former SGPC president Bibi Jagir Kaur for allegedly using her mobile phone inside the Kapurthala Jail in violation of the Jail Manual. However, once jammers are installed and walkie-talkie sets are given to the jail staff, such violations will be checked.

The sources said many criminals lodged in jails were allegedly running their gangs from there itself. The Jail Manual stipulates that there is no proper provision to book them for using mobile phone. "Punjab DGP (Jails) Shashi Kant is keen to get funds to buy jammers to curb illegal activities of inmates," said a senior jail officer.

At present, Punjab has seven Central Jails located at Patiala, Bathinda, Ferozepur, Amritsar, Gurdaspur, Jalandhar and Ludhiana, five districts jails located at Nabha, Sangrur, Faridkot, Kapurthala and Hoshiarpur, two open-air jails located at Nabha and Kapurthala, one women's jail at Ludhiana and 10 sub-jails at Fazilka, Majha, Mukatsar, Patti, Ropar, Barnala, Malerkotla, Phagwara, Dasuya and Pathankot. Besides, there is a jail training school located at Patiala.

“We will surely implement many more jail reforms, including banning of mobile phones from inside jails soon,” said DGP (Jails) Shashi Kant.

JAMMING NETWORK

• In the recent past, over 1,000 mobile phones had been recovered from jail inmates across the state
• The government's pilot project to install jammers in all jails is yet to see light of the day due to shortage of funds
• A sum of Rs 4 crore has been earmarked for modernisation of jail equipment, including modern communication sets for jail staff.

Bill C-10 makes crossing U.S. border tougher if you have a criminal record

VANCOUVER - The recent passage of Bill C-10, the federal Safe Streets and Communities Act, has made crossing into the U.S. from Canada more difficult for anyone with a criminal record.

A solution can be provided by Commissionaires B.C., but getting a waiver won't be cheap and it could take as long as a year or more, according to Deb Barnett, supervisor of identification for the organization.

Barnett said a Canadian ``record suspension'' is most important for employment reasons. But the new crime law has extended the waiting period for that to five years from three years for less serious offences and to 10 years from five years for indictable offences.

Anyone with three indictable offences leading to prison sentences of more than two years each can't get their record wiped clean. Neither can someone convicted of sex offences against a child.

But getting a U.S. entry waiver is critical for travel to or through the U.S.

``This has some pretty major effects on people's lives,'' said Barnett.

She cited two cases of people who came directly to her office after being turned back at Vancouver International Airport.

One was heading to the U.S. to visit his dying sister in hospital. A random check revealed he had an assault on his record from a marital dispute more than 20 years in the past and he was rejected.

The other man was heading to his second home in Palm Springs, Ariz., to join family members who had travelled ahead of him. A random check of the man, who was in his 50s, turned up a marijuana possession from when he was 18.

``He had no idea they were doing this,'' said Barnett of the checks.

The Commissionaires are an independent, non-profit security organization that provides meaningful work for former Canadian Forces and RCMP members. There are other companies that also deal with the complicated process of getting what used to be called ``pardons'' but are now, since March 12, called ``record suspensions.''

Barnett pointed out that a Canadian pardon is not recognized by U.S. border guards.

That's where a U.S. entry waiver, which is granted by the Department of Homeland Security, is required. It costs $585 US, payable to U.S. Citizenship and Immigration Services.

All of this requires getting criminal record files, for which the Commissionaires charge a service fee. The fee for that is $399 but the total for the entire process averages $1,059.

Criminal records are kept in the Canadian Police Information Centre, which can be accessed by U.S. Customs. If a U.S. official has accessed that record it remains in their database even if that record is wiped out by a pardon in Canada.

That's why the entry waiver is critical.

Harper's drug stance may put him on the outs at Summit of the Americas

South American leaders advocate drug decriminalization

OTTAWA — Prime Minister Stephen Harper is flying to a weekend summit in Colombia where his hard line on drugs will put him at odds with some Latin American leaders who are calling for a debate over whether drug use should be decriminalized.

Harper's position on Cuba also could run afoul of a possible consensus by countries in central and South America.

Harper is attending the Summit of the Americas, a conference of leaders from 34 nations that is held every three years.

The talks this year will include such issues as trade expansion, and Harper will meet with senior business executives from Canada and elsewhere who are attending the summit to discuss investment in the Western Hemisphere.

As well, it's expected many Latin American leaders will argue the time has come, after decades of being barred from the summit, for Cuba to be invited to the next gathering.

That will run counter to the firm positions of Canada and the United States, which insist Cuba should not be permitted to attend the next summit until the communist regime initiates democratic reforms.

Meanwhile, another issue — illicit drugs — is top of mind for some leaders. The escalating violence connected to warring drug cartels in Latin America has some nations insisting it's time for a new approach: softer penalties for drug use or perhaps even a decriminalized system in which governments regulate how the drugs are sold.

To varying degrees, the leaders of Guatemala, Colombia, Mexico and Costa Rica have spoken out in favour of exploring approaches other than the criminal to the problem of illegal drug use.

But on Thursday, Harper's director of communications said Canada will argue strenuously against decriminalization of illegal drugs.

"The prime minister would be a strong voice in that debate," said Andrew MacDougall. "The government's strategy is, in fact, completely in the opposite direction.

"A key priority for us is to fight illicit drugs, particularly the transnational organizations that are behind the drug smuggling. Here at home, we have put in place tough new laws to crack down on these groups, to put drug dealers behind bars where they belong."

Critics of the so-called 'war on drugs' approach note that Latin American drug cartels have grown more powerful as violence spreads throughout the region — claiming more than 50,000 lives in Mexico alone — and that drug use has only increased in rich nations such as Canada and the United States.

Suddenly, some leaders are looking to this weekend's summit in Cartagena, Colombia as a perfect opportunity to begin debate on a question that was once taboo: Why not remove the profits of the cartels by making the drug trade a legal — but highly regulated — business?

That's not an option being welcomed either by the Harper government, or by U.S. President Barack Obama's administration.

The Obama administration says it is open to a debate on the issue — if only to "demystify" decriminalization as an option and show that such a move would backfire and make matters worse.

Among those speaking most bluntly for decriminalization is Guatemala's president Otto Perez Molina, who was the former head of his country's intelligence service.

In an opinion article that appeared earlier this week in the British newspaper the Guardian, he outlined the merits of ending prohibition.

"We all agree that drugs are bad for our health and that therefore we have to concentrate on impeding their consumption, just as we combat alcoholism and tobacco addiction," he wrote.

"However, nobody in the world has ever suggested eradicating sugarcane plantations, or potatoes and barley production, in spite of these being raw materials in the production of the likes of rum, beer and vodka. And we all know that alcoholism and tobacco addiction cause thousands of deaths every year all over the world."

Molina added that "mainstream global drug policy today is based on a false premise: that the global drug markets can be eradicated."

Guatemala is pushing for countries to drop "ideological" considerations and explore a "realistic approach."

"Drug consumption, production and trafficking should be subject to global regulations, which means that drug consumption and production should be legalized, but within certain limits and conditions," he wrote.

Molina said a regulatory approach to recreational drug consumption would still face problems, such as how to "diminish" violence generated by drug abuse, strengthen public health systems to help drug addicts and prevent substance abuse — possibly by prohibiting drug sales to minors, banning mass media advertising, and slapping high taxes on drugs.

Colombian President Juan Manuel Santos, who is hosting this weekend's summit, also hasn't been shy about speaking in favour of new options.

Earlier this month, he told the Washington Post the discussion on drug policy is "not rational" and he wants to see an "open" and "objective" debate.

"If we find that there is a better alternative that will take away the profits from the criminal organizations and that maybe you can address the problem of consumption in a more effective way, then everybody will win."

RTE Act applies to all govt, private schools, rules Supreme Court of India

Private unaided minority institutions get exemption
New Delhi, April 12

The government got a shot in its arm today when the Supreme Court upheld the constitutional validity of the Right of Children to Free and Compulsory Education (RTE) Act (2009) and ruled that the law would apply uniformly across India to all government, local bodies and private unaided schools.

By a majority view, a three-judge Bench of Chief Justice SH Kapadia and Justices KS Radhakrishnan and Swatanter Kumar said the Act would apply to all private and minority schools, which get grants from the government. All unaided private schools are also covered under the Act with the exception of unaided private minority schools.

All schools covered by the law will now have to compulsorily reserve in Class I (or nursery at entry level) at least 25 per cent seats of the total strength of that class for children belonging to weaker sections and disadvantaged group in the neighbourhood. Top Delhi institutions, including Sanskriti, Modern School, DPS, Vasant Valley would be covered under the RTE Act.

However, missionary schools in Chandigarh like St John’s, Carmel Convent, St Anne’s and Sacred Heart which get no grants from the government, will be exempted and not have to reserve 25 per cent seats for the weaker sections.

“Missionary schools are in any case enrolling children from the Economically Weaker Sections but with the additional 25 per cent quota, they were feeling extremely burdened. The SC order is a relief,” said Alka Sarin, advocate for Chandigarh’s missionary schools.

The SC’s order came on a bunch of petitions filed by private unaided institutions which argued that the law violated their rights under Article 19(1) (g) of the Constitution which provided them the autonomy to run institutions without government interference.

Justice Radhakrishnan’s dissenting view that the law should not apply to unaided private and unaided minority institutions was overruled by Justices Kapadia and Swatanter Kumar.

The apex court said the law should be viewed as child-centric and not institution-centric. The court also ruled that the judgment would apply from today (Thursday). This means it won’t apply to admissions granted before today and post April 1, 2010 when the Act came into force. The law will thus apply prospectively.

Earlier, the SC had reserved its judgment on August 3, 2011, on petitions filed by the Society for Unaided Private Schools, Independent Schools Federation of India and others who primarily contested 25 per cent quota at entry level.

HRD Minister Kapil Sibal today thanked the apex court for upholding the interests of children before anything else. “The court has clarified a very complex issue. We welcome the court’s view that such legislations should be seen as child-specific and not institution- specific. It’s the future of children that will be secured through the law. We had always held what the SC has today ruled. Every school must now comply,” he added.

The government, however, clarified that madrassas and Vedic schools won’t be covered under the RTE Act and a Bill amending the law would be taken up in Parliament soon to exempt these institutions. “These institutions are not schools as per the definitions of the RTE Act,” Sibal said.

Schools reserving 25 pc seats will be reimbursed expenditure to the extent of per-child-expenditure incurred by the state as a whole or the actual amount charged from the child whichever is less.