Saturday, 27 April 2019

AMAZON GETTING 100% TAX BENEFITS




 AMAZON GETTING 100%   TAX BENEFITS

Amazon getting 100%   tax benefits
2019 Amazon started with poor performance 
There was 20% decrease in the sales compared to 2018 because of that share prices of the Amazon also decreased
Amazon 5.6 billion dollar in 2017
Amazon on 11. 16 billion dollar
Then also legally company does not pay any revenue to the USA
2018 Amazon did not pay any income tax to the government
It happened only due to accounting
Amazon uses d deduction scheme  to reduce taxes
In three ways Amazon uses deduction schemes to reduce tax
1 research and development the amount which is spent on wages and supply is shown as research and development fund which is as per government rules and regulation considered as as research and development fund
USA wants 2 who consider their nation in the world as a technology superpower that's why they give direction in Texas for the research and development
Amazon saved 1.5 billion dollar due to research and development fund scheme
Depreciation
Trump has introduced some research findings into the taxes
Trump government could not understand the actual contribution of depreciation
Because of new rules and regulation company started hiding their depreciation amount and benefit short for the tax detection
Because of depreciation companies are saving lot of taxes
Fourth is stock based compensation

not all the companies are giving advice to the companies for the compensation 
Employees been given shares of the company for composition
Because of this they can save lot of taxes
Company increases number of shares and value remains same for  Per share
Amazon saved 1 billion dollar due to this scheme of giving shares as a compensation
Infact Amazon 129 million dollar in 2018 as a tax benefit or  return on tax

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