Stock Monitor: Acorn Intl. Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 19, 2017 / Active-Investors issued a free report on Amazon.Com, Inc. (NASDAQ: AMZN), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=AMZN as the Company's latest news hit the wire. An official communication from Agenzia delle Entrate, Italy's Tax Agency dated December 15, 2017, disclosed that Amazon.Com has agreed to the Italian Agency's tax assessment and would, therefore, pay €100 million (approximately $118 million) to settle a tax dispute. The tax dispute is with regards to the outstanding taxes payable by Amazon for the years 2011-2015. Amazon owed approximately €130 million in back taxes in Italy for the said period. Sign up now for our free research reports at:
Active-Investors.com is currently working on the research report for Acorn International, Inc. (NYSE: ATV), which also belongs to the Services sector as the Company Amazon.Com. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Amazon.Com most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
The Tax Dispute and Settlement
Amazon.com and Italy's Inland Revenue Agency have agreed to the assessment and resolve all potential disputes related to any outstanding taxes payable by the Company. The investigation on the matter was carried out by the Guardia di Finanza (Italian law enforcement agency under the authority of the Minister of Economy and Finance) in coordination with the Milan Public Prosecutor's Office and covered the period from 2011 to 2015. Amazon.com has agreed to pay a total of €100 million which will resolve all pending and potential tax disputes related to the said investigations. The tax settlement covers Amazon.com's Italian divisions - Amazon EU.ar.l and Amazon Italia Services srl. The Italian Tax Agency has drawn an agreement with Amazon.com to ensure that the Company pays the correct taxes in Italy in the future.
Amazon.com had earlier defended its stance and explained that its profits in Italy were much lower in the disputed period as it had made huge investments to build its business and that it had already paid taxes for the said period. According to Amazon.com, it had invested approximately €800 million since it set up its business in Italy in 2010 and has over 3,000 employees.
Internet Companies under scrutiny of Italian Regulators
Earlier Apple and Google have also settled tax disputes with the Italian Tax Agency. Apple had agreed to pay €318 million in December 2015 and in May 2017 Google had agreed to pay €306 million to settle the tax-related disputes for back taxes owed. The Italian Tax Agency has taken a stricter stance on these companies which have avoided paying taxes to the Italian Government for their business operations in Italy. The Italian Tax Agency's contention is that large multinational companies, especially internet companies, with operations across Europe and the world have found a way to avoid paying taxes by channeling their earnings via low-tax havens like Ireland and Bermuda.
Facebook had announced on December 12, 2017, that it is making changes in its tax structure with effect from FY18 so that the company pays taxes in the country where sales actually take place rather than routing its transactions through its Irish subsidiary. Facebook made the changes after coming under tremendous pressure from US and European countries for paying less than actual taxes.
In a bid to have proper tax legislation to cover the tax loopholes, the Italy's Senate Budget Committee in November 2017 approved a proposal to introduce a 6% levy on all digital sales. The tax is nicknamed "web tax" and is expected to come into effect from January 2019 and the country's Finance Ministry is working to define which services will be covered under this tax. The Finance Ministry is expected to come out with the list of services by April 2018. The "web tax" is expected to net €114 million per year to the country's treasury.
Stock Performance Snapshot
December 18, 2017 - At Monday's closing bell, Amazon.Com's stock was marginally up 0.97%, ending the trading session at $1190.58.
Volume traded for the day: 2.94 million shares.
Stock performance in the last month – up 4.69%; previous three-month period – up 22.76%; past twelve-month period – up 57.12%; and year-to-date - up 58.77%
After yesterday's close, Amazon.Com's market cap was at $571.34 billion.
Price to Earnings (P/E) ratio was at 300.50.
The stock is part of the Services sector, categorized under the Catalog & Mail Order Houses industry. This sector was up 0.8% at the end of the session.
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.