American tax officials

Chapter 317 Jeff's Loss of Control

"The Amazon Group representative was speechless; it seems this charge has been confirmed!"

"With nearly $10 billion in tax evasion implicated, Amazon is in for a tough time!"

"The charges against Amazon for tax evasion have finally been confirmed, but it's unclear whether this is the only charge or if there are other charges later."

By this point, viewers watching the live stream could confirm that Amazon's tax evasion charges were definitely upheld.

The courtroom scene.

David had already retrieved the second document and said, "Your Honor, besides the charge of VAT reduction, Amazon Group has another problematic aspect: for many years, they have been receiving government tax subsidies. But how exactly have they done this? I will explain it to you first..."

In the following time, David explained to the people present and those watching the live stream how Amazon received tax subsidies, and finally said: "In the past, because various states and regions needed to develop, they did give Amazon a lot of subsidies, and Amazon did receive these subsidies legally and compliantly."

"But after 17 years, the states and regions had developed, so the demand for tax credits naturally increased. However, Amazon was still able to receive tax credits every year. Incredibly, to this day, they still have $14 billion in tax credits in their accounts. However, according to my detailed investigation over this period, they have actually been receiving these credits in an irregular manner over the past few years."

As soon as he finished speaking, the faces of the defendants, including Lakrue, darkened even more.

That's right, they were well aware that the group had indeed violated regulations regarding tax subsidies, and since David dared to point it out in public, he must have evidence.

The thought of the group being accused of a second crime filled them with deep despair.

On stage, after spending about ten minutes reading David's second investigation report, Nicola turned to the defendant's dock and questioned, "Defendant's representative, according to the documents, in Montgomery, Las Vegas... and other places, you injected funds from other regions into those regions to achieve your tax targets in order to receive local tax subsidies. According to tax laws, this constitutes tax fraud. You'd better explain this."

Having said that, without waiting for Lakruva and the others to make a request, Nicola waved her hand to signal the staff to take down the documents and reports and hand them to them.

After carefully examining the area, the despair on the faces of Lakruva and the others deepened.

Just like with the previous value-added tax cuts, they simply couldn't understand how David had managed to gather so much confidential information about their group from so many regions across various states and cities in such a short period of time.

However, they may not know, but now that the investigation report is right in front of them, they have no way to deny it and can only accept their fate.

"Fuck!"

Looking at the expressions of Lakluva and the others in the audience, Jeff knew that the charge of illegally receiving tax subsidies had probably been confirmed, so he cursed with a grim face.

"Defendant's representative, are you sure you have no objections to this investigation report from the Los Angeles IRS?"

Hearing Nicola's question, Lacker and the others exchanged glances, but in the end they lowered their heads helplessly. The data was clear, and they really couldn't think of any rebuttal.

"In that case, the charges of tax irregularities against Amazon regarding the VAT reduction and tax subsidies are established. Chief Secretary David, is there anything else to add?"

"Your Honor, while VAT reductions and tax subsidies are significant, they pale in comparison to the charge I'm about to bring against Amazon!"

David's words were met with an immediate uproar.

The illegal receipt of tax subsidies amounted to over 1 billion yuan, and the value-added tax reduction was even more outrageous, directly involving nearly 10 billion yuan in tax funds. However, these are just the tip of the iceberg.

What charges will David bring against Amazon next?

"Oh my god, besides these two charges, does Amazon have any other more serious charges?"

"The VAT reduction has already involved tens of billions of dollars in tax revenue. If this is considered child's play, then the charges that Director David is going to bring against Amazon will involve at least 200, 300, 400 billion, or even more!"

"I thought it was over, but it seems the real show is just beginning!"

Meanwhile, the people watching the live stream were in an uproar.

Goodness, after all this accusations, from illegally receiving tax subsidies to violating value-added tax reduction regulations, it turns out this was just an appetizer, and the real main course is only being served now?

For a moment, everyone held their breath and stared wide-eyed, afraid of missing a single detail or word.

If asked who was most nervous at this moment, it would naturally be Lacruyne in the defendant's dock and the executives of the Amazon Group in the audience.

At this moment, they were all staring at each other, racking their brains to guess what charges David would bring against them next.

And what crime does their group have that is even more serious than value-added tax reduction and illegally receiving tax subsidies?

Under everyone's gaze, David slowly began to speak: "The reason why Amazon has been able to develop so rapidly and become the world's number one e-commerce giant, I think, is not only because their products are of high quality and their prices are lower than other platforms, but also because they offer 'free shipping.' I believe everyone agrees on that, right?"

These words left many people who were already tense and holding their breath somewhat bewildered.

Didn't you say that Amazon has even more serious crimes? Why are you bringing up Amazon's development now?

Before anyone could ask any more questions, David continued, "Of course, there's no such thing as a free lunch. There are some requirements to get this service. The condition is that each person needs to pay a membership fee of 139 per year to enjoy this service."

"But then again, even with the $139 membership fee, it's still a great deal, as it means you get free shipping on all your purchases on the platform for a whole year."

"Alright, enough suspense. Now I'll get to the point. According to accurate data we have, Amazon's logistics costs reached $850 billion last year. Based on the number of customers, Amazon lost at least $400 billion last year on free shipping. How does Amazon maintain the lowest costs, offer free shipping, and still make a profit? Have you ever thought about where that money comes from?"

As soon as the words were spoken, the defendants, including Lakluva, were struck dumb, their eyes widening as if they had been hit by lightning.

Meanwhile, many of Amazon's top executives in the audience also displayed similar expressions.

For some reason, their group's logistics costs were not disclosed in the true form, but now David actually knows the accurate figures.

That's not all. The most critical issue is that, once an investigation is launched, as David mentioned, how does their group manage to keep costs to a minimum, deliver goods for free, and still make a profit?

This is a secret that cannot be revealed!

"Mr. Jeff, we can't continue this conversation, or our Amazon Group will be finished!"

On the side of the gallery, a senior executive from Amazon Group became nervous and whispered a reminder to Jeff next to him.

Jeff didn't even need his reminder; his hair stood on end at that moment.

He didn't know how much inside information David knew about the matter, but he was certain that the details of this matter must not be exposed, otherwise the entire group might immediately be condemned by everyone.

While Amazon's top management racked their brains for a solution, viewers were also discussing the matter extensively.

Some say that the reason Amazon lost so much money on logistics was because it made money on other things, such as goods and merchants, which allowed it to subsidize the losses.

Some say that Amazon earns money from extra GG fees, which is why it has the money to subsidize its products.

In short, opinions vary widely, and few people realize the key point.

"Director David, our group's logistics matters are irrelevant to this case, so I think we don't need to discuss them further. Let's get back to the main topic. Since you've accused us of value-added tax reductions and illegally receiving tax subsidies, we have nothing to say. Let them decide the verdict as they see fit!"

Lakluva realized something was wrong and decided he couldn't let things escalate any further, even if it meant taking the blame for both crimes.

After all, while the crimes of value-added tax reduction and illegally receiving tax subsidies are serious, they at most result in fines, and at worst, imprisonment. They are not enough to cripple the entire group.

But if we continue to investigate the amount of money involved in this logistics, and if we really expose the secret that their group has been hiding, wouldn't their hundreds of millions of users turn upside down?

"Don't rush, Mr. Lakruva."

David glanced at him and continued, "Now let me reveal the secret. Amazon appears to absorb most of the logistics losses, but as the saying goes, there's no such thing as a free lunch, and the cost always comes from the consumer. In reality, Amazon has implemented a series of clever plans to incorporate shipping costs into the price of goods as a 'hidden fee,' which I call a hidden tax. In other words, in addition to the annual fee of $139, consumers are actually continuing to pay for 'free shipping,' but you consumers don't know it..."

"Alright, Chief David!"

A shout suddenly interrupted David's words, and everyone turned to look. It turned out that the one who made the shout was none other than Jeff in the audience.

"What? Why did Jeff suddenly lose control?"

"Jeff didn't seem this out of control when the charges of VAT reduction and illegal tax subsidies were confirmed earlier, but now he's actually stood up and interrupted the trial. This must be a very serious matter!"

"Wait... Chief David just said that Amazon implemented a clever plan to incorporate transportation costs into hidden expenses many times over. Is that true?"

"I know why Jeff was in such a hurry. If this is confirmed, it not only involves tax evasion, but also consumer fraud!"

Jeff's outburst in court sparked another round of heated discussion among those in the courtroom and watching the proceedings.

"Bang bang bang!"

Suddenly, chaos erupted at the scene, and Nicola had to bang her gavel three times to silence everyone.

"Mr. Jeff, I think you need to understand one thing: to speak in court, you must obtain the judge's permission; otherwise, you will be expelled from your position. Do you understand?"

"Understood, Your Honor. As our group's representative stated, since the Los Angeles IRS has sufficient evidence regarding the VAT deductions and the illegal receipt of tax subsidies, we will tentatively admit to these charges and are willing to accept the penalties. However, the logistics incident is irrelevant to this, and I request that this topic be closed!"

Jeff is certainly a man who knows what's important. At this moment, let alone admitting to these two crimes, he would be willing to pay any price as long as the matter of logistics was no longer pursued.

"Your Honor, the logistics incident involves serious tax evasion and is directly related to this case. It is also a point of contention in our Los Angeles IRS prosecution."

David also stepped forward.

"Mr. Jeff, you should have heard this. This is an incident directly related to this case, and since the Los Angeles IRS wants to continue its prosecution, it should continue. Dismissal!"

"Your Honor, if we must continue, I request that the proceedings be conducted via closed-door livestream, or we could reach an out-of-court settlement with the Los Angeles IRS. There are ways to negotiate!"

Jeff had no choice but to settle for second best, and his final statement, "There's always room for negotiation," was practically a blatant message to David: if you agree, we Amazons are at your mercy!

However, the viewers who were watching were not having it. They wanted to know if Amazon was really charging them hidden fees. If the live broadcast was closed or an out-of-court settlement was reached, how would they find out about the matter?

Therefore, viewers on various social media platforms have been speaking out, urging the Los Angeles IRS not to grant Jeff's request.

Fortunately, David's next words put them at ease.

In court, David shook his head and said, "Mr. Jeff, you should have come to talk to me about this sooner. But now we're in court, and the whole country is watching. We at the IRS must uphold fairness and transparency, so I'm sorry!"

"David..."

Jeff wanted to say something more, but at that moment two bailiffs walked straight toward him. In order to avoid being ejected from the courtroom, he could only swallow his words and sit back down, clenching his fists and gritting his teeth.

(End of this chapter)