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Nike could have paid 116 million kroner more in Norwegian tax: report

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Nike could have paid 116 million kroner more in Norwegian tax: report
File photo: Vegard Wivestad Grøtt / NTB scanpix
13:30 CET+01:00
Sports giant Nike could have paid 116 million kroner (12.3 million euros) more in Norwegian taxes if it had reported all of its turnover and profits onshore, according to a report.

Newspaper Aftenposten reported on Monday that Nike had paid low taxes relative to its income in the Scandinavian country, after analysing the company’s accounts from the period 2007 to 2015.

The tax calculations, which rely on the premise that Nike is equally profitable in Norway as it is abroad, show profit margins worth 116 million kroner more in tax than the amount that was actually paid, according to the report.

The company reported profits of 73 million kroner (7.7 million euros) between 2007 and 2015, resulting in tax payments of 21 million kroner, according to Aftenposten’s report.

But the newspaper estimated the actual profit margin to be 483 million kroner – which would have meant a tax sum of 137 million kroner would be due.

Nike Norway said that questions regarding its tax payments should be directed to its central headquarters.

“Nike operates in accordance with tax rules and we ensure that our tax returns are complete and in accordance with the way in which we trade, invest and create jobs. Through employment, economic activity and paid taxes, Nike is a significant contributor in many economies around the world,” the company told Aftenposten via email.

According to the newspaper’s calculations, 82 out of every 1000 kroner spent on Nike shoes in the company’s own outlets or web shops goes to wages, rent and other overheads in Norway, while four kroner is paid in tax.

Several international media published reports based on leakages known as the 'Paradise Papers', primarily from Bermuda-based offshore finance firm Appleby, on Sunday night.

The material was initially leaked to German newspaper Süddeutsche Zeitung, which then shared it with media organisations attached to the International Consortium of Investigative Journalists (ICIJ), including Aftenposten.

The same network reported last year’s Panama Papers leaks.

READ ALSO: Norwegian authorities still investigating 'over 60 cases' related to Panama Papers

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