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1/10/19

EU probes Nike tax deals in the Netherlands

The EU on Thursday launched an in-depth probe into Nike's tax affairs in the Netherlands, following revelations in the "Paradise Papers" scandal that exposed low tax deals for multinationals.

The investigation of one of the world's most iconic brands, with its "Just Do It" moniker, follows a series of other tax probes targeting the Netherlands, including into Starbucks and Ikea.

A similar investigation of Apple's tax affairs in Ireland resulted in a order by Brussels that the iPhone maker repay Dublin an extraordinary 14.3 billion euros in back taxes.

The commission, the EU's powerful anti-trust enforcer, "will investigate carefully the tax treatment of Nike in the Netherlands, to assess whether it is in line with EU state aid rules," Competition Commissioner Margrethe Vestager said in a statement.

The investigation will try to determine whether a series of tax agreements over almost a decade gave Nike an "unfair advantage over competitors" in the Netherlands, she added.

The investigation will focus on two Dutch-based units of Nike that the EU suspects paid tax "that may not reflect economic reality", a statement said.

Read more: EU probes Nike tax deals in the Netherlands

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