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Friday, 28 February 2020
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Amazon pardoned from paying taxes due to virtual nature of its products

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When American Institute on Taxation and Economic Policy (ITEP) issued a report in which they show that one of the biggest worldwide retail companies, Amazon, hasn't been paying taxes a second year in a row, the news was met with confusion and disdain. The obligatory 21% of income wasn't obligatory enough for a company that made $11.2bn just last year. But then the first man of the company, Jeff Bezos took a somewhat philosophical stand to explain the situation, and the world was relieved.

'"Our profits remain modest given retail is a highly competitive, low-margin business. People should be aware of some facts also – Amazon is a web-based company that doesn't really exist in reality. Everything you see on the site can be true and exist somewhere, but it's also a virtual item in the row of other virtual items as well. So it's a very perplexing situation that we're dealing with here, and we can't just be attacked on the grounds of not paying taxes on profit, because when you sell a virtual thing, the profit is also virtual, right? I would like to refer to Plato who once told me that the reality is like a wall in a cave - all you can grasp there are shadows. We perceive these shadows as reality, for we know of no other spheres than of our own, enclosed one. And if we learn of some other spheres, it could blind us by its light, that we again couldn't be able to differ pure, factual form, from our ideas and misconceptions. Same thing with internet sales', Bezos concluded.

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