EC: Did Nike Receive Unfair Special Tax Treatment in the Netherlands?

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Nike is the latest large international conglomerate to come under fire for special tax treatment which may have amounted to unfair state aid in the Netherlands, the EC has announced. The European Court of Justice is reportedly looking into Dutch tax authorities’ allowance of 5 tax rulings given to Nike during 2006 and 2015.

The Nike group apparently received intellectual property licenses in exchange for a tax-deductible royalty imbursement from associated corporations considered to be not taxable in the Netherlands. The companies had no employees and did not carry out any business activities, therefore failing CFC regulations.