United states tax collector

Chapter 318 The verdict is as follows

"Director David, you can continue the previous topic."

David nodded and said: "As I mentioned just now, Amazon is charging users hidden fees. I call it a hidden tax. How do they charge it? Let me explain to you in detail. one time."

“First, Amazon’s strategy is to use Prime to establish, expand and strengthen barriers to entry. One of the results is that Amazon now has an overwhelming monopoly share of online shoppers. Once it gains monopoly power, Amazon Charge fees from third-party sellers to lower prices. As a third-party seller, you have to pay for listing on Amazon, using Amazon’s warehousing services, namely Amazon’s delivery services, and advertising services. If you don’t pay, "

"So, online shoppers may not be real "customers", but "products" provided by Amazon to third-party sellers. As for third-party sellers, they must pay their requirements and related fees to Amazon, otherwise they will Loss of market access.”

“Currently, the total fees Amazon collects from third-party sellers has grown to nearly 50% of its revenue, and it is Amazon using this funds (totaling an estimated $123 billion last year) to pay for all services bundled with Prime. Fees, i.e. “free” shipping, video services, music services, Twitch, etc.”

"These third-party sellers in turn raise prices to consumers and then remit the money back to Amazon in the form of fees..."

In the dock and auditorium, listening to David reveal their background bit by bit, the faces of the mute Mason executives such as Loire and Jeff lost any color.

What they worried about finally happened, but now they have no way. Now they are like a fish on the chopping board, they can only let others slaughter them.

Many of them already regretted it now. They regretted that when the Los Angeles Internal Revenue Service announced that they would investigate them, they should have found ways to come to the door and reach a compromise.

Or perhaps they should have cashed out their shares at that time, because it was foreseeable that their group's stock price was about to experience a sharp decline, and the impact of this incident was too great. As for what would happen? Even they couldn't predict the extent.

"Ward, Amazon actually sold us as products to a third party? This is simply unreasonable!"

"Fake, I said no wonder why once you subscribe to this $139 fee every year, a series of bundled services are inexplicably added. It turns out that this is the reason!"

"If this is true, then Dumb Mason is really abominable!"

“I really thought Amazon’s free shipping service was subsidizing us consumers, but it turned out that they actually reached an agreement with a third-party seller behind the scenes and sold us!”

At the same time, after listening to David's explanation, the people watching became angry.

There are many of them. Why should they choose Dumb Amazon?

Not only are the products inside high-quality and low-priced, but the most attractive thing is the free shipping service.

And they have always believed that this service is a benefit and subsidy from Amazon to consumers like them.

But now I hear it, what the hell are these welfare and subsidies? This is completely harvesting them without their knowledge and treating them like leeks!

At the court scene, David continued: "This is the source of why Amazon's logistics losses are tens of billions every year. Of course, in fact, it cannot be called a loss, because they only suffered losses on the surface, and actually relied on third parties. They also made a lot of money from the bundled servers and the fees returned by the sellers..."

"Your Honor, I object to the prosecution's accusation. This is simply slander without evidence!"

Finally, Lackluwa, who was in the dock, couldn't bear it anymore.

He knew very well that David's words must have aroused the anger of the people across the country against the Dumb Amazon Group. Once the charges were proven, he would be finished, and the group would face the most serious crisis in history. .

But there is no need to be so pessimistic now.

Although what David said is reasonable and well-founded, it is indeed true.

But the hidden consumption involved a wide range of third-party sellers and various cooperative organizations tied to third parties. He didn't quite believe that David could really get enough evidence.

"Your Honor, I have here a list of data and confessions about 366 merchants on the Amazon platform. In addition, I have invited the heads of 123 merchants to come here and can testify in court at any time to testify to the authenticity of this matter!"

In the dock, after hearing these words, Lakluwa and others slumped in their chairs.

Just now, they were still feeling a little lucky, thinking that hidden consumption involved a huge amount, and David might not be able to be convicted of this crime.

But now, people have obtained the data list and confessions of 366 merchants, and even invited most of the merchants involved.

And what does it mean for these people to be invited here?

It means that it must have been taken care of by the Los Angeles IRS to get here.

At the same time, this also means that if they want to refute the debate, they will have to engage in a verbal battle with these 123 business leaders. Even if they each have ten mouths, they may not be able to explain clearly!

In the audience, Jeff and others were like lost souls, standing there in a daze until the witnesses came out of the passage one after another. Only then did he come to his senses and he immediately stood up and walked out of the courtroom.

"Your Honor, my name is Armando Zoe, and I am a merchant on the Amazon platform. I joined the platform in 2019, and a year later, my sales exceeded 5 million US dollars. Since then, people from the Amazon Group have found me and forced me to sign a series of agreements. This agreement is actually a hidden consumption of consumers. I was unwilling at the time because I knew very well that once consumers knew about this, it would be very serious, but the Amazon Group was very domineering, and I had to sign it in the end."

"Your Honor, my name is Juric, and I am a merchant on the Amazon platform. I was also forced to sign a series of agreements by the Amazon Group after I joined the Amazon Group and reached a certain amount of consumption..."

In the following time, the heads of these 123 merchants took turns to explain all the agreements signed with the Amazon Group.

Of course, it also includes hidden consumption content that defrauds consumers.

"Fuck, Amazon Group, what else do you have to quibble about now?"

"123 merchants have testified in court, all accusing Amazon Group of charging hidden fees, and this crime is set in stone!"

"Amazon Group, you will pay the price for your fraud!"

What David said just now was true, but after all, there is no actual evidence.

Now that so many merchants have testified in court, the evidence is naturally sufficient, so the consumers who are watching the live broadcast are also calling for severe punishment of Amazon.

At the court, after listening to the testimony of the merchants, Nicola looked at the data list again, and finally turned her eyes to the defendant's seat and asked: "Defendant representative, do you have anything to refute the testimony of the merchants and the data list in my hand now?"

La Kulua and others were all pale, and none of them wanted to speak, let alone refute.

Meanwhile, David was reminded by Keppel. He gave Nicola a look, then walked out of the courtroom, took the phone Keppel handed over, and asked, "What's wrong, Deputy Director Donald?"

"The White House called, and they are also watching this live trial. In order to avoid causing economic turmoil, the White House means not to involve Jeff. Do you understand?"

David was not very surprised to hear this.

After all, Jeff is the founder of Amazon and the world's richest man for four times. If he is sentenced to prison, it is not impossible that Amazon, which has lost its backbone, will face the risk of collapse.

The impact on the American economy at that time is even more difficult to estimate.

But then again, he and Jeff Amazon have no grudges. Since the superiors told him not to touch Jeff, then he won't touch him. It doesn't matter much.

"Okay, I understand, Deputy Director Donald."

"Okay, then you should finish the follow-up as soon as possible, and we should also prepare for the relevant matters of your arrival."

David's mood instantly became excited when he heard the second half of Donald's words.

Yes, the tax investigation of Amazon is now just waiting for the final verdict. If it is completed, he can prepare to report to the General Administration.

Will he finally have a place in the power center of the IRS?

After calming down a little, he returned to the trial scene, came to the bottom of the judge's seat, and talked with Nicola for a few minutes before retreating.

Nicola swept her eyes to the position of Amazon Group in the audience and said, "Mr. Philmelen, Mr. Jimenez, and Mr. Becker, please come to the court."

The three people who were already as pale as death suddenly became more pale after hearing this. It has come to the final verdict stage. What's the point of calling them to court?

Of course, let the three of them bear all these charges!

But there is no way, who let them be the tax director, the financial director, and the vice president in charge of the Amazon platform business.

And these charges involve financial fraud, tax cost, and platform fraud against consumers. These are the businesses they are mainly responsible for, so naturally they have to take the blame.

Watching the three people walk to the front of the court, Nicola stood up and pronounced the verdict: "This court pronounces that Amazon is guilty of tax value-added violations, illegal receipt of tax subsidies, and suspected of hidden taxes. The verdict is as follows."

"First, refund all tax subsidies from 2017 to date."

"Second, pay a total of 9.836 billion US dollars in value-added tax reductions from 2017 to date."

"Third, pay a total of 7.3 billion US dollars in hidden taxes."

"Fourth, a fine of 8 billion US dollars, plus the tax amount, a total of 25.136 billion US dollars needs to be paid to the IRS."

"Fifth, consumers who paid hidden fees will be compensated tenfold!"

"Sixth, Mr. Philmellen, Jimenez, Becker, and Mr. Lacroix, as the financial director, tax director, chief legal consultant, and vice president of platform operations of the Amazon Group, you need to bear the main responsibility for these three charges."

"Now I sentence you to 20 years in prison, do you have any objections?"

After the verdict was announced, the four people named were mixed with sadness and joy.

The sadness was, of course, that they were sentenced to 20 years in prison.

The joy was that, according to the IRS's previous practice, once the charges were proven, they would be sentenced to thousands of years in prison. They were only sentenced to 20 years now, and they were not allowed to be paroled. This was a blessing in disguise.

Of course, David had wanted to adopt the sentencing standards for those tax evaders before, but Donald's call just now forced him to change his mind.

Because this matter had alarmed the White House, and the White House also gave a message. Although it was just telling him not to mess with Jeff, it was also a disguised way of telling him to be as quiet as possible.

So the 20-year sentence for these people now was also a face-saving measure for the White House, and I believe they will understand it.

In the audience, Jeff had returned at this time, and he felt a chill on his back when he heard the verdict.

But thanks to the network of relationships he has accumulated over the years, and the fact that his business is now large enough to affect the economy, otherwise, he might be the one standing in front of the court now.

"How can such a serious crime be sentenced to only 20 years? And the most important thing is that Jeff, as the big boss, has not received any punishment at all. This is a pity..."

"Although Jeff has not been punished, the more than 20 billion in taxes and fines are enough to make them feel painful. The most important thing is that they have to compensate us consumers who paid hidden fees tenfold, which will make them bleed again. Cool!"

"We have to thank the Los Angeles Internal Revenue Service, the court, and Director David. Otherwise, let alone getting ten times the compensation, we don’t even know when we will know about the hidden consumption, and we don’t know how long we will be cut by them!"

"..."

After hearing the verdict, some people felt regretful. After all, compared with those tax evaders in the past, the 20-year sentence is still too light. The most important thing is that as the leader of the group, Jeff has not been punished at all.

But some people are very happy, because they will get a ten-fold compensation for the hidden fees, which naturally makes them very grateful to the IRS and David.

"Defendant, are you sure you have no objection?"

Listening to Nicola's questioning again on the stage, the people of the Mamason Group looked at each other, but in the end no one spoke, as if they accepted the result by default.

In fact, they have to accept it.

After all, the hidden tax incident has been exposed, and their best public relations method is to accept the punishment and let the public have a good influence on them to know their mistakes and correct them.

Secondly, even if they are not satisfied, can they appeal to other courts or the Supreme Court?

In the end, they still have to continue to be tried in the IRS court. When David gets angry, he will make up a few more charges for them, and they may have to accept more serious penalties.

So for them, accepting this sentence now is the best result.

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