Adidas headquarters raided for 2 consecutive days in 1 billion euro tax evasion investigation

Adidas said the investigation was unlikely to have “any significant financial impact” on the company.

Adidas store in Berlin, Germany - Photo: REUTERS

According to the Financial Times , December 11 was the second consecutive day that criminal prosecutors and customs investigators searched the headquarters of sportswear giant Adidas in Germany.

The move shows the seriousness of a years-long investigation into suspected tax evasion by the sports brand, which could amount to more than 1.1 billion euros.

The European Public Prosecutor's Office (EPPO), based in Luxembourg, announced that it was conducting a "criminal investigation" into "a German group operating in the sports goods business" over "suspicion of tax evasion related to customs duties and import sales tax".

The EPPO said the violations could have occurred in Germany and Austria, causing “losses to the European Union budget”. However, the EPPO did not name Adidas.

Adidas confirmed the raid and said the company was “cooperating with the authorities, providing the necessary documents and information”.

Several informed sources said that in addition to Adidas' headquarters in Herzogenaurach (Germany), many business locations and private homes of company employees were also searched.

A source told the Financial Times that the search warrants put the cumulative tax losses at more than €1.1 billion. The EPPO, German customs and Adidas declined to comment on the amount or the number of individuals involved.

Adidas does not expect “any significant financial impact” from the investigation, and has known about it “for many years”.

The company said the investigated conduct took place over a five-year period, from October 2019 to August 2024.

The sportswear giant said the issue arose due to “differences in the interpretation of German and European law”, adding that it “continues to work closely with customs authorities”.

In 2022, Adidas revealed it had increased provisions for “customs-related risks,” but did not specify the amount.

Adidas said at the time that the provisions were included in a one-time operating loss of 350 million euros, which included the cost of exiting its Russian operations, settling legal disputes and restructuring costs.

Sources also revealed that in addition to the provisions, Adidas has paid some taxes and duties.

A large portion of the tax amount under investigation relates to value-added tax (VAT) on imports that Adidas has not declared and paid.

And since the company will receive an equivalent tax refund, this will not affect Adidas' profits.

The tax investigation is the latest scandal to hit Adidas following its disastrous split with rapper Kanye West over negative comments made by the artist.

Source: https://tuoitre.vn/tru-so-adidas-bi-kham-xet-2-ngay-lien-tiep-trong-cuoc-dieu-tra-tron-thue-1-ti-euro-20241212095309349.htm