Paradise Papers: Nike and Apple evades billions in taxes
Through ingenious systems, giant multinational companies like Nike and Apple evade tax, ‘Paradise Papers’ shows.
Nike, the world’s largest shoe manufacturer, as an example, has earned nearly $ 100 billion which they have barely been taxed for. This is shown in leaked documents from the international law firm Appleby.
Media from a number of countries has collaborated on the so-called Paradise Papers revelations, among them the Norwegian newspaper Aftenposten.
According to journalists, Nike has over the years made profits of $ 12.2 billion, a little shy of NOK 100 billion, in overseas sales. This revelation, coupled with information stemming from the company itself, indicate that the footwear giant has paid less than 2 percent in taxes on their overseas sales.
The money has evaded taxation, through among other methods, using finagles whereby Nike companies outside the United States are paying billions in patent rights to the company ‘Nike International’ located in the tax haven of Bermuda. In other words, Nike pays itself for the right to use its own trademark.
Apple has also utilized a loophole in the US tax law, called “doing a double Irish”, according to BBC.
Revenue from all sales outside the United States, which accounts for more than half Apple’s total revenue, was channeled through Irish subsidiaries, which therefore in practical terms were stateless, contributing to the fact that the tax rate rarely exceeded 5 per cent, and in some years has been as low as 2 per cent.
© NTB Scanpix / Norway Today