• About
  • Contact
Monday, January 25, 2021
Next Big Brand
  • .
  • News
  • Internet
  • Startup
  • OTT
  • Agency
  • Industries
  • FMCG
  • Automobile
  • Retail
  • Tech
  • Case Study
  • Interview
No Result
View All Result
Next Big Brand
Home Case Study

Exploring Amazon’s 800 Bn Valuation, 11.2 Bn Profits and 0 USD Tax!

Sourav by Sourav
July 4, 2019
in Case Study
4 min read
0
Exploring Amazon’s 800 Bn Valuation, 11.2 Bn Profits and 0 USD Tax!
Share on FacebookShare on Twitter

During FY2018, Amazon reported total revenue of 10.7 Billion USD. Valued at 800 Billion USD, Amazon is a mammoth of a company, with its founder and CEO, Jeff Bezos, named the richest man alive. Moreover, its profits in FY18 were reportedly 11.2 Billion USD, indicating a whopping 98% in YoY growth. Now, when a company is pretty much rolling in money, you would expect that their taxes are also very high. But, this is not the case with Amazon. This global e-commerce giant pays 0 USD in taxes.

A report released by the Institute on Taxation and Economic (ITEP) policy confirmed that Amazon has enjoyed a second consecutive year of paying 0 tax. While the company pretty much doubled its revenue from 2017-2018, they are still liable for no taxes. How is this possible? Amazon leverages various tax exemption laws, tax credits, loopholes, and rebates in order to achieve this. In fact, the company even reported a total tax rebate of 120 Million USD to the income tax office in the US. Let us find out how they managed to achieve this feat.

amazon logo
source:- Amazon.com

How can Amazon not be liable for any taxes?

Amazon explained to government officials that it did not owe any taxes mainly because it had recently suffered a depreciation of assets and saw deductions for stock-based compensations. Amazon received a ton of backlash for this. In 2018, it was reported that the company owed 322 Million USD tax to the US and 563 Million USD to the rest of the world. But, by talking about the exemptions that they are liable for, they have definitely angered a lot of people as they feel the company is guilty of tax avoidance.

One of the main spokespeople for Amazon, Jodi Seth, has talked about the same by trying to downplay the issue. He talked about how much income-generation has happened in the US due to the jobs provided by Amazon. He also went on to say that Amazon’s contributions to the US’s economy were tremendous, thus implying that this should allow them to get away without paying their taxes. Moreover, he also spoke of the 125 Billion USD investment that Amazon had received in 2011, and explained how a huge amount of that money went into building a strong network of delivery stations, cloud solutions, 125 fulfillment and sortation centers, and so on.

Elaborating on the tax issue, he said: “Corporate tax is based on profits, not revenues, and our profits remain modest given retail is a highly competitive, low-margin business and our continued heavy investment.”

We are not sure why they think that a profit of 11.2 Billion USD falls under the category of ‘modest profits’, but that was all Jodi Seth had to say about the matter.

Donald Trump has been blasting Amazon over Twitter regarding their policies of avoiding their taxes. Though these tweets brought down Amazon’s share by 9%, they did little else to convince the giant to pay up. By employing a legal team whose job is to figure out what corporate policies to use to help them invade tax, Amazon has consistently been under fire for tax avoidance. Now we know how Jeff Bezos surpassed Bill Gates to become the richest man in the world!

Is Amazon Breaking the law?

Not really! One would think that when companies do not pay their taxes, they come under the government’s microscope and are forced to pay up. But, interestingly, Amazon is not breaking any laws. This is because the Tax Cuts and Jobs Act of 2017 introduced many different loopholes and exemptions due to which highly profitable companies like Amazon can get away with avoiding their taxes. They also reduce corporate tax rates in America from 35% to 23%. So, even though Donald Trump routinely tweets about Amazon’s tax avoidance behavior, he is the one who has made it easier for the company to not pay a single penny to their local or state governments.

Due to the Tax Cuts and Jobs Act of 2017, it is highly likely that Amazon will not face any legal pressure to pay their taxes, which means that the company can get away scot-free!

The picture of frugality

Amazon has always been the picture of frugal business choices that allowed it to improve its profits and grow its name. So, looking for ways to avoid paying taxes or at least lower their taxes definitely falls under the realm of things that this company would happily do. To be fair, if US’s laws have provided companies with loopholes to avoid taxes, then these companies are not the ones that should come under fire. The media needs to question the government’s actions instead because the only thing Amazon is guilty of is looking after itself!

#amazon #ecommerce

Previous Post

Indians Spend the Longest Time Listening to Music on OTT Platforms

Next Post

Shopclues pursuing an eleventh hour buyout from Snapdeal to stay afloat

Sourav

Sourav

Excellent story-teller, with a background in SEO and Digital Marketing. Likes to write and give form to opinion and incidents.

Related Posts

AHA: Rise of Telugu Region OTT Platform in a Short Span of Time
Case Study

AHA: Rise of Telugu Region OTT Platform in a Short Span of Time

January 25, 2021
Indigo Paints: Colorful journey of a Lesser Known Paint Brand
Case Study

Indigo Paints: Colorful journey of a Lesser Known Paint Brand

January 22, 2021
Lava Mobiles: Planning a Strong Comeback in the Smartphone Industry
Case Study

Lava Mobiles: Planning a Strong Comeback in the Smartphone Industry

January 17, 2021
18 Year Old Josh Richards Journey to Tiktok Star, Actor, Entrepreneur, Investor, and Musician
Case Study

18 Year Old Josh Richards Journey to Tiktok Star, Actor, Entrepreneur, Investor, and Musician

January 11, 2021
Maggi: Journey of a Foreign Brand to Indian Kitchens
Case Study

Maggi: Journey of a Foreign Brand to Indian Kitchens

January 5, 2021
The Rise and Downfall of the World Known Indian Automobile Designer Dilip Chhabria
Case Study

The Rise and Downfall of the World Known Indian Automobile Designer Dilip Chhabria

January 1, 2021
Next Post
Shopclues pursuing an eleventh hour buyout from Snapdeal to stay afloat

Shopclues pursuing an eleventh hour buyout from Snapdeal to stay afloat

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RECOMMENDED NEWS

Pocket Aces- Story Of Three Aces FilterCopy, Dice Media & Gobble

Pocket Aces- Story Of Three Aces FilterCopy, Dice Media & Gobble

1 month ago
Mitron TV Secures Funding From 9Unicorns, To Focus On Atmnirbhar Motto

Mitron TV Secures Funding From 9Unicorns, To Focus On Atmnirbhar Motto

3 months ago
Amazon Brand Value- Next Big Brand

Amazon Becomes First Brand To Exceed $200 Billion Brand Value Mark

1 year ago
Intuit India- Next Big Brand

Intuit India Tops The List Of 100 Best Companies To Work For 2020

7 months ago

FOLLOW US

  • 22.5k Fans

BROWSE BY TOPICS

2018 League amazon Amazon Great Indian Sale Amazon Prime Apple Apple Inc Automobile Industry Balinese Culture Bali United Budget Travel Champions League Chopper Bike Doctor Terawan facebook Facebook app future group hotstar Indian OTT Platforms Indian Smartphone Market Istana Negara Jio Market Stories Maruti Suzuki National Exam Netflix Netflix India Netflix Originals oppo OTT OYO Realme Reliance Industries Limited Reliance Jio RIL Samsung Tata Motors Tiktok TikTok India TikTok Videos Visit Bali Vivo whatsapp Xiaomi Xiaomi India YouTube
Next Big Brand

We Talk About Brands

Follow us on social media:

Recent News

  • TCS Surpasses Mukesh Ambani’s RIL to Become the Most Valued Indian Company
  • AHA: Rise of Telugu Region OTT Platform in a Short Span of Time
  • Bata is All Set to Start Training and Fitness Apparel Business

Instagram

Follow Me!

Latest News

TCS Surpasses Mukesh Ambani’s RIL to Become the Most Valued Indian Company

TCS Surpasses Mukesh Ambani’s RIL to Become the Most Valued Indian Company

January 25, 2021
AHA: Rise of Telugu Region OTT Platform in a Short Span of Time

AHA: Rise of Telugu Region OTT Platform in a Short Span of Time

January 25, 2021
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
  • DMCA Policy
  • Our Team
  • Contact Us
  • Sitemap

© 2019 NBB. All Rights Reserved.

No Result
View All Result
  • .
  • News
  • Internet
  • Startup
  • OTT
  • Agency
  • Industries
  • FMCG
  • Automobile
  • Retail
  • Tech
  • Case Study
  • Interview

© 2019 NBB. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.