German prosecutors and customs investigators conducted a raid on Adidas headquarters, signalling intensified scrutiny.
- The investigation by the European Public Prosecutor’s Office focuses on alleged tax evasion in customs duties and sales tax.
- Adidas is accused of owing over £906 million (€1.1 billion) in taxes.
- The company has been aware of the investigation for years and pledged full cooperation.
- Differences in legal interpretation between German and European laws are the crux of the issue.
In a significant development, Adidas’ German headquarters became the focus of a major investigation as prosecutors and customs investigators conducted a raid this week. The operation was in pursuit of a multi-year investigation into suspected tax evasion that could have major financial implications for the global sports brand.
The European Public Prosecutor’s Office revealed this criminal investigation targets a German corporate group involved in sportswear trading. The suspicions revolve around intricate issues of customs duties and import sales tax, according to a report by the Financial Times. Although not officially named by the investigators, Adidas has acknowledged being the target and is actively cooperating with the authorities.
The raids spanned various locations including the headquarters in Herzogenaurach, as well as employees’ private residences. These actions come amid accusations that the company owes a substantial sum exceeding €1.1 billion from tax discrepancies. Despite this, Adidas maintains that the fiscal impact of the investigation is unlikely to be significantly detrimental.
Adidas has issued statements expressing confidence about its position, attributing the dispute to differing interpretations of German and European law. The company has been reportedly informed about the investigation for several years and affirms its continued collaboration with customs authorities to resolve the issue.
The legal proceedings concerning Adidas signify a critical juncture for the company, highlighting significant regulatory challenges within the EU.
