Nike: EU launches in-depth investigation over Dutch taxes
(CercleFinance.com) - EU regulators are investigating whether Nike has breached EU laws by unduly reducing its taxable profits through two companies based in the Netherlands.
The European Commission said on Thursday that it has opened an in-depth investigation on the tax treatment of Nike European Operations Netherlands BV and Converse Netherlands BV, two Dutch-based Nike group companies.
According to the Commission, both subsidiaries are taxed in the Netherlands on a limited operating margin based on sales, and the EU wants to know if the tax rulings endorsing these royalty payments may have unduly reduced their taxable base since 2006, which would equate to illegal State aid, it said.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The European Commission said on Thursday that it has opened an in-depth investigation on the tax treatment of Nike European Operations Netherlands BV and Converse Netherlands BV, two Dutch-based Nike group companies.
According to the Commission, both subsidiaries are taxed in the Netherlands on a limited operating margin based on sales, and the EU wants to know if the tax rulings endorsing these royalty payments may have unduly reduced their taxable base since 2006, which would equate to illegal State aid, it said.
Copyright (c) 2019 CercleFinance.com. All rights reserved.