Chapter 318 The verdict is as follows
“Director David, you can continue the previous topic.”
David nodded and said: “As I said just now, the mute mason is here I call it a hidden tax from users. Let me explain to you in detail how they charge it.”
“First of all, Amazon’s strategy is. One result of using Prime to establish, expand, and strengthen barriers to entry is that Amazon now has an overwhelming monopoly share over online shoppers. Once it gains monopoly power, Amazon drives down prices by charging fees to third-party sellers. , as a third-party seller, you have to pay for listing on Amazon, use Amazon’s warehousing services, that is, Amazon delivery services, and advertising services. If you don’t pay, you won’t be able to enter the places where consumers click. Website location. "
"So, online shoppers may not be real "customers", but "products" provided by Amazon to third-party sellers, and third-party sellers must pay Amazon. its requirements and related fees, otherwise it will lose 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, namely "free" shipping, video services, music services, Twitch, etc. "
"And these third-party sellers in turn raise prices to consumers and then remit the money back to Yuma in the form of fees. Son..."
In the dock and in the auditorium, listening to David revealing their old stories bit by bit, the faces of the mute Amazon executives such as Roois and Jeff were no longer clear. A little blood.
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 at this moment. They regretted that when the Los Angeles Internal Revenue Service announced that it 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 a product to a third party? This is simply unreasonable!"
"Fake, I said no wonder why once we order it every year After paying the fee of 139 US dollars, a series of bundled services were inexplicably added. It turns out that this is the reason! "
"If this is true, then Duma Amazon is really disgusting! ”
“I really thought that 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 thought 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, treating them as 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 huge profit from the bundled clothes and the fees returned by the sellers..."
"Your honor, I object to the prosecution's accusation. This is simply slander without evidence!"
< br>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 also face The worst crisis ever.
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 involves a wide range of third-party sellers and various cooperative organizations tied to third parties. He doesn't quite believe that David can 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 appear in court to testify at any time. The truth of the matter!"
In the dock, Lakluwa and others slumped in their chairs after hearing these words.
Just now, they were still feeling lucky, thinking that the 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.
What does it mean for these people to be invited here?
It means that it must have been dealt with by the Los Angeles IRS before we can 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. !
Here in the auditorium, Jeff and others seemed to have lost their souls and just stood there dumbly. It was not until the noise of witnesses coming out of the passage one after another that they came back to their senses. Come, he immediately stood up and walked out of the court.
"Your Honor, my name is Armando Zoe, and I am a merchant on the Amazon platform. I joined this platform in 2019, and a year later, my sales exceeded US$5 million. Since then, Later, people from Amazon Group found me and asked me to forcibly sign a series of agreements. This agreement was actually a hidden consumption for consumers. I was unwilling at the time because I knew very well that this matter Once consumers know about it, it will be very serious, but the Amazon Group is very domineering, and in the end I had to sign it.”
“Your honor, my name is Jiuli, and I am the Amazon platform. One of the merchants, like me, was forced to sign a series of agreements by Amazon Group after reaching a certain amount of consumption..."
In the next During the time, these 123 business leaders took turns to explain all the agreements signed with the Amazon Group.
Of course, it also includes hidden consumption content that defrauds consumers.
"Faq, Dumb Amazon Group, what else do you have to quibble with now?"
"123 merchants have testified in court, all accusing Amazon Group of charging hidden consumption. This crime is already a certainty!"
"Mazon Group, you will pay for your fraud. It’s a price!”
Although what David said just now has a nose and eyes, after all, it is just words without actual evidence.
Now that so many businesses have testified in court, the evidence is naturally overwhelming. Therefore, consumers watching the live broadcast also called for severe punishment for Dumb Amazon.
At the court scene, after listening to the testimonies of the merchants, Nicola looked at the data list again, and finally turned her attention to the defendant's dock and asked: "Representative of the defendant, what about the merchants?" Do you have anything else you would like to refute, including the testimony and the data list I have in my hands now?”
Lakluwa and the others all looked ashen, and no one had the intention to speak, let alone refute.
Here, David was reminded by Keppel. He gave Nicola a look, then walked out of the court door and took the phone handed over by Keppel. Asked: "What's wrong, Deputy Director Donald."
"The White House called, and they were also watching the live trial. In order to avoid causing economic turmoil, the White House meant not to get involved. Go to Jeff, do you understand?" David was not surprised by this.
After all, Jeff is the founder of Amazon and the four-time richest man in the world. If he is sentenced to jail, it is not unreasonable for Amazon, which has lost its backbone, to directly face the risk of collapse. possible.
By then, the impact on the U.S. economy will be even more inestimable.
But having said that, he had nothing to do with Jeff Masson. Since his superiors told him not to touch Jeff, then he just shouldn't. It didn't matter.
"Okay, I know Deputy Director Donald."
"Okay, then you can wrap up the follow-up matters as soon as possible. We also need to prepare matters related to your arrival. "
Hearing the second half of Donald's words, David became excited instantly.
Yes, now the tax investigation on Dumbson is about to be finalized. If it is completed, he can prepare to report to the General Administration.
Is he finally going to have a place in the power center of the Internal Revenue Service?
After calming down a little, he returned to the court hearing and came under the judge's bench. He communicated with Nicola for a few minutes before retreating.
Nicola glanced at the seat of the audience, the Mason Group, and said: "Mr. Phil Mellen, Jimenez, and Becker, please come to the court."
After hearing this, the faces of the three people who were already ashen-faced turned pale. They have already reached the final stage of sentencing. What does it mean to call them to court?
Of course, let the three of them bear all these charges!
But there is no way, who makes one of them the tax director, the other the financial director, and the other the vice president in charge of the Amazon platform business.
These crimes are suspected of financial fraud, tax costing, and platform fraud on consumers. These are the businesses they are mainly responsible for, so naturally they will take the blame.
Watching the three people walking to the court, Nicola stood up and pronounced the verdict: "This court has pronounced that Dumason is guilty of violating the tax value-added regulations, illegally receiving tax subsidies, and suspected of illegally receiving tax subsidies. Hidden tax is established, and the verdict is as follows. "
"First, all tax subsidies from 17 years to now will be refunded."
"Second, the value-added tax reductions paid since 17 years ago totaled US$9.836 billion."
"Third, the hidden taxes paid totaled US$7.3 billion."
"Four, penalties of US$8 billion , plus the tax amount, a total of US$25.136 billion needs to be paid to the IRS.”
“Fifth, consumers who have paid hidden fees will be compensated ten times.”
"Sixth, Phil Mellen, Jimenez, Becker, and Mr. Lacroix, as the financial director, tax director, chief counsel of the legal department, and vice president of platform operations of Amazon Group, you are responsible for these three crimes. The main responsibility needs to be paid.”
"Is there any difference in sentencing you to prison for 20 years?"
After the verdict came down, the four people who were named felt a mixture of joy and sorrow.
The sad thing is of course that he was jailed for 20 years for betrayal.
The good news is that according to the past style of the IRS, once the crime is confirmed, the punishment will be tens of thousands of years. They have only been in prison for 20 years now, and they have not been told that they will not be paroled. This is already unfortunate. Fortunately.
Of course, David actually wanted to adopt the previous sentencing standards for tax evaders, but Donald's call just now forced him to change his mind.
Because this incident has alarmed the White House, and the White House has also given words. Although it is just telling him not to mess with Jeff, it is also telling him in disguise to try to be as gentle as possible.
So the current 20-year sentence for these people can be regarded as a face to the White House, and I believe they will understand it.
In the auditorium, Jeff had returned at this time, and when he heard the penalty result, he felt a chill in his back.
But thanks to the network he has accumulated over the years, and the size of his business, it is now large enough to affect the economy. Otherwise, he might be the one standing in front of the court now.
“Why is it only 20 years for such a serious crime? And the most important thing is that as the big boss, Jeff has not been punished 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 the hidden fees ten times. This is another We have to let them bleed a lot, it’s great!”
“We have to thank the Los Angeles IRS, the courts, and Director David. Otherwise, we would not have received ten times the compensation, and even the hidden consumption would have been lost. I don’t know when it will be known, and I don’t know how long it will take them to cut the leeks!”
“…”
After hearing the verdict, some of the people felt sad! It's a pity that compared to 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 receive ten times the compensation for hidden fees, which naturally makes them very grateful to the IRS and David.
"Defendant, are you sure you have no objections?"
Listening to Nicola's question again on the stage, the people in the Duma Amazon Group looked at each other, but in the end no one spoke. As he spoke, he seemed to accept this result by default.
In fact, it’s okay if they don’t accept it.
After all, the hidden tax incident has been exposed. Their best public relations method is to accept punishment, so that the public will have a good influence on them that they can correct their mistakes.
The second thing is, even if they are not convinced, can they still appeal to other courts or the Supreme Court?
In the end, they would not have to continue to be tried in the Internal Revenue Service court. When David gets angry and accuses them of a few more crimes, they might have to accept a more severe punishment.
So for them, accepting this penalty now is the best result.
(End of this chapter)