This week, authorities conducted raids at Adidas’ German headquarters as part of a long-standing tax evasion investigation.
- The operation is led by the European Public Prosecutor’s Office (EPPO), targeting a corporate group within the sportswear sector.
- Authorities are investigating potential tax evasion related to customs duties and import sales tax, amounting to over £906m.
- Adidas acknowledges the raids and states cooperation with the investigation, though no significant financial impact is expected.
- The issue stems from diverse interpretations of German and European tax laws, according to Adidas.
Adidas’ German headquarters were subject to a raid by criminal prosecutors and customs investigators. This operation is part of a multi-year investigation into suspected tax evasion totaling more than £906m (€1.1bn). The European Public Prosecutor’s Office (EPPO) is spearheading a criminal investigation targeting an unnamed German corporate group involved in sportswear, as reported by The Financial Times.
Despite not being explicitly named by the EPPO, Adidas confirmed the conducted raids. The company asserted its cooperation with the authorities, providing the necessary documents and information as required by the investigation. The raids extended to Adidas’ headquarters in Herzogenaurach, additional business locations, and even employees’ private residences, amid suspicions of accumulated tax damage exceeding €1.1bn.
Adidas stated that the investigation would not have any substantial financial ramifications for the company. They have been aware of the investigation for several years, indicating preparedness for such actions. The company attributes this tax issue to differing interpretations of existing German and European law and maintains that they are working closely with customs authorities to resolve the matter.
The situation highlights ongoing complexities in international business regulations and Adidas’ commitment to resolve the issues amicably.
