Nike's Tax Planning

On January 10, 2019, Margrethe Vestager, the EU's "Tax Queen," launched a challenge against Nike:

"Member States should not allow companies to set up complex structures that unduly reduce their taxable profits and give them an unfair advantage over their competitors. The [European Competition] Commission will carefully investigate Nike's tax treatment in the Netherlands to assess whether it complies with EU State Aid rules. At the same time, I welcome the steps taken by the Netherlands to reform its corporate tax rules and help ensure that companies operate in a fair and competitive environment in the EU."

Nike attempted to block the Tax Queen's offensive by filing an appeal with the EU court, arguing that the evidence was insufficient to justify the investigation. However, on July 14, 2021, the EU General Court ruled against Nike, allowing the European Commission to continue its investigation into Nike's tax avoidance practices. This entire controversy stemmed from the explosive revelations of the "Paradise Papers."