Nike managed to reduce taxes, first sending money to Bermuda, then to nowhere

Spread the love
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Shoes are displayed at the Nike store in Santa Monica, California, September 25, 2013.

Nike’s global tax rate dropped from 34.9% in 2007 to 13.2% in 2016.

Published 31 mins ago  |  Photo by Reuters/Lucy Nicholson
Shoes are displayed at the Nike store in Santa Monica, California, September 25, 2013.

13.2%

The company managed to escape taxation by sending money to Bermuda, a tax haven, according to the Guardian’s review of the Paradise Papers.

Shoes are displayed at the Nike store in Santa Monica, California, September 25, 2013.

13.2%

Starting in 2005, Nike shifted profits from the Netherlands, the headquarters for the company’s revenues in Europe, the Middle East and Africa.

Shoes are displayed at the Nike store in Santa Monica, California, September 25, 2013.

13.2%

By housing the intellectual property rights for its products in Bermuda, where corporate taxes are zero, Nike avoided paying billions of dollars in taxes.

Shoes are displayed at the Nike store in Santa Monica, California, September 25, 2013.

13.2%

When the Netherlands agreement expired in 2014, Nike started transferring royalties to another subsidiary. Instead of being based in Bermuda, the subsidiary was essentially based nowhere.

Shoes are displayed at the Nike store in Santa Monica, California, September 25, 2013.

13.2%

How can a company be stateless? It used a Dutch “CV” structure—it stands for commanditaire vennootschap or limited partnership—which is controversial, but widely used among multinationals.

Published 31 mins ago

Check out more stories below—and please take a quick three-minute survey to help us improve.

Share this story

Leave a Reply

Your email address will not be published. Required fields are marked *