Paradise Papers: The surprising journey your money takes after buying a pair of Nikes
Four Corners with the International Consortium of Investigative Journalists
Extensive efforts by Nike to shift profits from high-tax countries to no-tax countries and minimise its tax bill internationally have been exposed.
An investigation by Four Corners has revealed intricate workings of the world’s largest sportswear retailer’s tax manoeuvring, based on 13.4 million documents revealed in the Paradise Papers leak.
The investigation, in conjunction with the International Consortium of Investigative Journalists from documents obtained by German newspaper Suddeutsche Zeitung, shows Nike’s Australian arm is owned by — and pays large amounts of money to — Nike companies housed in the low-tax destination of the Netherlands.
The company’s own filings show that Nike has only paid tax of 1.4 per cent on accumulated global offshore profits of $US12.2 billion.
But how do they do it?
Let’s have a look…
It’s a game called “profit shifting” and it makes tax officials — and the public — angry that profits are moved from high-tax countries to very low-tax countries.
Because that’s less money for roads and schools and hospitals. And fat profits for offshore companies, their lawyers and accountants.
Gardner says: “There is a strong and growing belief that government is not there to serve us and when it’s documented as well as it has been that companies like Apple and Google and Microsoft — these incredibly profitable companies — are just able to use the tax system like a pinata, that just reinforces the belief that no-one cares about the plight of middle income families.”
This Comment recently about Tax Havens is spot on – Mick Raven