IN THE PAPERS
In The Papers 19 November
19-11-2008
by Sylvia Leatham
Online tax returns decline | SME venture capital funding on the rise
The Irish Independent says that the amount of taxes filed online in Ireland by Monday's deadline was EUR1.63 billion, a drop of 28.5 percent on the amount paid online last year. The lower online tax take comes despite a larger number of people using the electronic tax filing facility this year: a record total of 303,066 income tax returns were filed, a rise of more than 8.6 percent since last year. Economists said the sharp fall in the amount of tax money filed online was indicative of the weakening economy and they stressed that the decrease in returns bodes ill for the Exchequer finances.
The paper also reports that Irish venture capital funds have raised EUR500 million in a recent round of fundraising for SMEs. A UCD study found that R&D expenditure in small and medium-size enterprises grew 25 percent in 2007, compared to an increase of 7 percent by other indigenous companies. "It is particularly noteworthy that funding by private investors grew from 4 percent of funds raised in 2007 to 22 percent in 2008," said Tanaiste Mary Coughlan, at the launch of the study. "This means that the economy is now starting to benefit from 'angel' investors and successful entrepreneurs who can contribute experience as well as capital in helping to create Ireland's next wave of successful high-tech firms."
According to the Financial Times, Baidu.com, China's largest internet search engine, has admitted that some companies had used its website to market fraudulent information, as it faces mounting criticism for auctioning top search result rankings to the highest bidders. Recent media reports said searches on Baidu for cancer and sexually-transmitted diseases had produced fraudulent, unlicensed pharmaceuticals websites as top results. In a statement, Baidu said it had started an internal investigation of the problem, pledged to co-operate with regulators and expressed a "sincere apology for hurting the feelings of users and other customers". Unlike most search engines, Baidu mixes sponsored links with "genuine" search results without marking the sponsored links clearly.
The Wall Street Journal reports that Microsoft is to offer free software to protect PCs from viruses. The software giant said it plans to introduce security software, code-named Morro, during the second half of next year in an effort to persuade more users to secure their PCs against spyware, viruses and other forms of malware. Morro will replace another software program called Windows Live OneCare, a broader suite of software and services. Microsoft will discontinue retail sales of that software, which costs USD49.95 a year for consumers, on 30 June 2009. The free security offering could be a problem for Symantec, McAfee and other independent security firms.
The same paper notes that US online spending growth in October fell to its lowest rate since 2001. Online retail spending grew only 1 percent in October from a year ago, following a downward trend that started late last year, according to market research firm comScore. The spending slowdown is happening as mid-to-lower income families that make less than USD50,000 a year have stopped spending online, the study says. "I think it's clear that consumers have less disposable income and as a result, e-commerce is going to suffer," says Andrew Lipsman, a senior manager at comScore.
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