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00:00:00 – 00:08:14
The video discusses Amazon's business model, emphasizing its revenue sources, value chain, key activities, and competitive strategies in the online retail sector. It highlights the importance of inbound and outbound logistics, marketing, and sales, as well as the company's personnel selection process for hiring top talent. The analysis delves into Amazon's tax strategies, transfer pricing regulations, OECD standards, and the impact of tax legislation like BEPS Action 9 on the company's taxation. The recommended median rate for taxation stands at 3.43%.
00:00:00
In this part of the video, Charles Lincoln discusses Amazon’s business model and its competition in the online retail industry. Amazon’s main revenue comes from book sales and e-commerce transactions. He highlights Amazon’s value chain, including inbound logistics, outbound logistics, and marketing and sales strategies. Additionally, he mentions Amazon’s key activities, such as content providers, software development, and customer management.
00:03:00
In this part of the video, the discussion focuses on Amazon’s business activities including inbound and outbound logistics, sales, marketing, and support. The video highlights Amazon’s competitive advantage through its personnel selection process and Jeff Bezos’ emphasis on hiring the best talent. It also mentions intercompany transactions involving Amazon’s operations in the US and Ireland. The use of comparable profits method for intangibles is highlighted, along with strategies related to online retailing. The analysis indicates Amazon’s adherence to OECD standards and a specific median rate, different from the initial prediction of 4%.
00:06:00
In this part of the video, the speaker discusses a report with a suggested 3.43% median based on transfer pricing regulations and OECD averages after comparing 17 comparables. They mention how tax legislation, particularly BEPS Action 9, can impact taxation. The speaker explains how the location of financial decisions can affect taxation, with reference to the smiley face and company analogy. Despite OECD suggestions, U.S. case law may result in different tax outcomes. The recommended bridge for taxation remains at 3.43%.