Nike paid just £1m in tax after selling £100m of Manchester United replica kits
Taxman misses out on a potential £9.1m from the England football kit makers over five years
Monday 07 July 2014
Nike paid just £1m to the taxman in the past five years on £100m sales of its Manchester United replica kits, The Independent can reveal.
The company funnelled nearly £40m over the period to its Dutch business despite making most of its money on sales to football fans in the UK, according to accounts filed with Companies House.
The legal loophole saw the total tax bill in the UK for Manchester United Merchandising Ltd, which is jointly run by Nike and the football club, reduced to just £255,000 last year after an £8.3m royalty fee was paid to its Dutch subsidiary. Similar payments have been made for at least the past five years.
It means the taxman missed out on a potential £9.1m over the period from the England football kit makers and leaves Nike the latest in a line of US companies facing scrutiny for their tax affairs in Europe.
Nike could not be reached for comment yesterday, but has said it abides by all tax law in countries in which it operates.
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...
£20000 - £25000 per annum + OTE £35K - £45K: SThree: SThree Group have been we...