Adidas headquarters searched again in EU tax probe

Adidas AG (ETR:ADSGN ) headquarters has been raided for a second consecutive day as part of an ongoing European Union tax investigation, according to a report by the Financial Times. The investigation, which has been active for several years, is examining alleged tax irregularities amounting to €1.1 billion/

While Adidas (OTC:ADDYY ) did not confirm the latest searches on Wednesday, the company reiterated its previous statement from Tuesday, emphasizing its cooperation with the authorities. The probe, which spans from October 2019 to August 2024, focuses on Adidas's adherence to customs and tax regulations related to the import of goods into Germany. Despite the ongoing investigation, Adidas has expressed that it does not anticipate a significant financial impact from the matter.

The European Public Prosecutor’s Office (EPPO) has disclosed on its website that it conducted activities to gather evidence in both Germany and Austria on Wednesday. The EPPO suspects that a corporate group in the sportswear industry has been circumventing import duties, which has negatively impacted the EU budget. However, the EPPO has not released further details, citing the ongoing nature of the investigation.

Additional searches have been carried out at various other business sites and the private homes of employees, as per individuals with knowledge of the situation. These developments mark a significant step in the investigation, highlighting the scrutiny faced by multinational corporations over their tax practices in Europe.

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Source: Investing.com