Europe
Palantir faces scrutiny over European tax avoidance strategies
Palantir, which holds contracts with multiple European governments, has paid relatively little tax in Europe, according to a new report.
Researchers from the Centre for International Corporate Tax Accountability and Research (CICTAR), a non-profit organisation, and the European Public Service Union (EPSU), a trade union federation, found that Palantir reduced its tax liability in the region by shifting a portion of its revenues abroad.
Co-founded by Peter Thiel, the software company has drawn controversy for years over the surveillance capabilities of its technology, which critics contend raise privacy concerns.
The clients Palantir chooses to work with — including the military, law enforcement, and immigration services — have also fuelled this debate.
Palantir has secured significant success selling data analytics services to governments across Europe, most notably in the UK, France, Germany, Sweden, Spain, and Italy.
Securing major government contracts has boosted the company’s regional revenues. However, according to the CICTAR and EPSU report, Palantir employs tax strategies that facilitate what is known as base erosion, allowing the firm to lower the amount of tax it pays in Europe.
According to the report, the company achieves this by paying service fees to its US subsidiaries and introducing deductible expenses that diminish its taxable profits in Europe.
Consequently, while the effective tax rates applied to Palantir’s European operations appear high, the company manages to report low pre-tax profits.
Meanwhile, tax rates in the US remain significantly lower than those in Europe.
This practice extends to Palantir’s operations in the UK, which sits outside the EU.
None of the practices detailed in the report are illegal, and many large multinational corporations structure their operations in this manner to reduce their tax liabilities.
However, CICTAR and EPSU argue that base erosion is particularly problematic in Palantir’s case, emphasizing that while the company receives payments from governments for delivering services, it minimizes its contribution to the taxes that fund those very services.
Jan Willem Goudriaan, General Secretary of EPSU, said in a statement:
“Governments contract with Palantir to strengthen national security; but Palantir, by avoiding taxes, undermines public services, including national economic security.”
Although Palantir is deeply integrated into regional public service delivery, European alternatives such as France’s Chapsvision are gaining increasing traction.
Germany’s domestic intelligence agency announced that it will switch from Palantir to Chapsvision. In June, the French intelligence agency also announced that it would begin working with the domestic company.
Europe
Israel nears completion of vast trench dividing Gaza Strip
The Israeli military is nearing completion of a vast trench and earthen barrier project designed to divide the Gaza Strip effectively in two. According to a report by the Israel-based newspaper Yedioth Ahronoth, fortification works are concentrated in the eastern sector of the Yellow Line, which separates Israeli-occupied zones from areas under Hamas control.
Alongside the deep trench excavated to block vehicular passage, an elevated earthen berm is being erected using excavated soil. Israeli units are also conducting ground drilling at regular intervals along the route to detect cross-border tunnels extending into Israeli territory.
Controlling approximately 70% of Gaza’s territory, Israeli forces are consolidating their occupation area through this fortification line.
Excavations exceed designated boundary line
The plan to partition Gaza was first detected via satellite imagery in July of this year, revealing that construction extended hundreds of metres beyond the Yellow Line.
According to data cited by the Haaretz newspaper, the trench advances more than one kilometre beyond that designated line at certain critical points in southern Gaza.
Exceeding the line by roughly 400 metres in the Khan Younis area, the line extends along Salah al-Din Road, the primary transit artery between northern and southern Gaza.
In the Rafah sector, excavations reportedly reach approximately 1,300 metres beyond the Yellow Line. Through these works, which have continued without interruption for months, the Israeli military is expanding its de facto presence on the ground.
Permanent military bases built beyond ceasefire boundary
The Yellow Line was defined under the ceasefire agreement signed last year as the withdrawal boundary to which Israeli troops would pull back in the initial phase.
However, despite the plan announced by the US in October 2025 and the ceasefire process, Israeli forces advanced beyond the boundary and constructed permanent military positions along the line.
The Israeli administration conditions subsequent withdrawal phases on the disarmament of Hamas. Palestinian factions, conversely, stress that they will not surrender weapons unless an independent Palestinian state is established.
Yedioth Ahronoth pointed out that, despite the war, Hamas maintains administrative control across certain sectors of Gaza. The newspaper carried the headline: “Three years after October 7, Hamas still governs Gaza.”
Israeli officials speaking to the newspaper noted that they would continue targeting Hamas members, stating: “We will act against them and kill them one by one.” The officials claimed they were awaiting suitable operational conditions to limit civilian casualties.
The Gaza Ministry of Health stated that more than 1,450 Palestinians have been killed in Israeli strikes since the October 2025 ceasefire plan.
While the flow of humanitarian aid into the besieged enclave remains restricted to low levels, the transit of emergency medical equipment, such as wheelchairs, is being curtailed.
According to data from the Gaza Civil Defence, three people, including a woman and a child, were injured on Monday, 5 October, in an attack on a tent encampment near Khan Younis.
In an Israeli military strike on a vehicle in Deir al-Balah on 4 October, a Palestinian director of a Turkish aid organisation was killed.
Europe
Ex-BND chief August Hanning detained in German espionage inquiry
Investigators in Germany have detained the former president of the Federal Intelligence Service (BND), August Hanning.
According to reporting by WDR, NDR, and Süddeutsche Zeitung, an informant allegedly provided him with classified BND documents. Authorities are investigating whether this information reached foreign actors.
The Federal Public Prosecutor’s Office is investigating the former BND chief on suspicion of espionage against the state, disclosing state secrets, attempted high treason, and acting as an intelligence agent.
Another long-serving employee of the agency faces allegations of aiding and abetting attempted high treason as well as aiding and abetting espionage against the state.
According to findings by WDR, NDR, and SZ, investigators from the Federal Criminal Police Office (BKA) detained Hanning early in the morning at his home in Nordwalde, near Münster.
In Bavaria, authorities also detained another former senior BND employee: Manfred D., who was reportedly Hanning’s former head of office and worked at the BND until spring 2026.
D. allegedly supplied Hanning with top-secret information from the agency in exchange for money until at least 2022.
Investigators are examining suspicions that the 80-year-old former BND chief used this information in at least one instance to draft a security analysis for a foreign intelligence service.
According to information obtained by WDR, NDR, and SZ, however, this case does not involve Russia.
In another instance, Hanning allegedly used information obtained from internal BND documents in correspondence with a foreign agent.
According to sources in security circles, Hanning came under investigation following searches conducted at his home and offices in September last year.
At that time, the Hamburg State Criminal Police Office (LKA) was seeking evidence linked to the Block abduction case.
The Hamburg Public Prosecutor’s Office accuses steakhouse heiress Christina Block of ordering the abduction of her two youngest children in late 2023 amid a custody dispute.
According to investigators, August Hanning allegedly played a role in an earlier attempt to abduct the children, an accusation he denies.
According to reports by WDR, NDR, and SZ, LKA officers reviewing material seized from Hanning last year came across an electronic storage device containing critical information.
These reports indicate that the former official had access to top-secret BND documents of recent origin that he should not have been permitted to possess under any circumstances.
Hanning’s tenure at the BND ended in November 2005.
In total, approximately 2,000 documents were allegedly transferred from D. to Hanning. According to the investigation, most of these were briefing materials prepared for the “ND Situation” meeting at the Chancellery, where heads of security agencies exchange information on a weekly basis.
According to the reporting, the documents in question contained highly sensitive material, including reports on the Iranian nuclear programme and the Russian military.
Sources in security circles state that the records also included intelligence received from allied foreign intelligence services.
The leak of such material is considered a worst-case scenario among intelligence services.
Allied intelligence services could lose confidence in the BND and withhold vital intelligence from the agency.
Following an examination of the records, the Hamburg State Criminal Police Office (LKA) handed the seized documents over to federal authorities.
In May 2026, the Federal Public Prosecutor’s Office ultimately launched a classified investigation into Hanning and his alleged informant inside the BND.
The exact period over which classified internal documents were allegedly supplied to Hanning remains unclear. Security sources report that the latest documents found were dated June 2022.
It also remains unclear how the suspected mole inside the BND smuggled this material out of the secure agency. An urgent statement was requested from the BND regarding the matter.
Lawyers representing August Hanning have not responded to a late inquiry concerning the allegations.
For the BND, this marks the second severe incident in only a few years. A former BND department head is currently on trial before the Berlin Court of Appeal, alongside another defendant, on charges of spying for Russia in 2022.
That case involved top-secret information concerning the BND’s cyber operations that had been leaked from the agency.
If the suspicions against Hanning and the second suspect are substantiated, it would represent an intelligence scandal of historic proportions.
Never before in the history of the Federal Republic of Germany has an allegation of high treason involved an official of such seniority.
Throughout his career, August Hanning occupied key positions within Germany’s security architecture for decades.
Prior to serving as BND president, Hanning worked as a security officer at West Germany’s diplomatic mission in East Germany.
Following several postings in the Federal Chancellery, including as coordinator of the federal intelligence services, Hanning, who holds a doctorate in law, assumed leadership of the BND in 1998.
Following his tenure at the intelligence service, Hanning was appointed state secretary at the Federal Ministry of the Interior in late 2005. Four years later, he entered temporary retirement.
In subsequent years, Hanning established himself as an entrepreneur and security consultant.
Until last May, he served on the management team of a controversial security company based in Switzerland.
The firm’s German subsidiary had been temporarily retained in the custody dispute between Christina Block and her former husband.
During this period, Hanning and a business partner, a former LKA officer, apparently resorted to questionable methods: according to the public prosecutor’s office, the two allegedly planned in 2023 to discredit Block’s former husband through unfounded allegations of paedophilia.
Hanning and his alleged accomplice reportedly attempted to plant a hard drive containing images and videos of child sexual abuse material on the father of Block’s children.
The investigation remains ongoing. Hanning had previously denied all allegations in the Block case.
Europe
German domestic intelligence to probe Left Party and candidate Eralp
Germany’s Federal Office for the Protection of the Constitution (BfV) plans to examine the ties of the Left Party (Die Linke) and Elif Eralp to “extremist” groups.
The party’s lead candidate in Berlin, Elif Eralp, stands accused of “meeting with members of a PKK front organisation” while the election campaign was ongoing.
According to a report in WELT, Eralp has come under scrutiny by the BfV. During a Bundestag hearing with the heads of Germany’s security agencies, BfV Vice-President Sinan Selen also addressed the Left Party in the capital and its links to “extremist and terrorist” groups.
“We need to examine certain local situations very closely,” Selen said.
The domestic intelligence agency plans to investigate the extent to which Eralp and other Left Party politicians, such as Bundestag member Ferat Kocak, have established connections with “terrorist groups” and other organisations.
On election night, for instance, clan figurehead Issa Remmo, who is alleged to have ties to organised crime, and Ibrahim Ibrahim, alleged to be a supporter of the PFLP, attended the Left Party’s celebration.
Most recently, Eralp also faced criticism over her past membership in the left-wing organisation “Rote Hilfe” (Red Aid).
It is highlighted that this organisation, among other activities, collected donations for Daniela Klette, who is on trial over allegations of being a member of the RAF.
According to reporting by Bild newspaper, Eralp met during the election campaign with a delegation comprising several Kurdish organisations. Members of NAV Berlin were also present at the meeting.
Security agencies consider this group to be a front organisation for the PKK, which is banned in Germany.
During the election campaign, Eralp said that she wanted to abolish the Berlin State Office for the Protection of the Constitution.
When questioned by Bild, Eralp refrained from commenting on her stance regarding the PKK.
The domestic intelligence agency, meanwhile, issued the following statement:
“The PKK continues to be the organisation with the largest membership and the greatest influence in the field of foreign-linked extremism and terrorism in Germany.”
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