Tax Raid at Adidas: Investigators Search Company Headquarters Again

Once again, customs investigators and prosecutors caused a stir at the headquarters of Adidas in Herzogenaurach as they searched for evidence of extensive tax evasion for the second consecutive day. The allegations putting the sports equipment manufacturer in a difficult position relate to potential violations of customs and import sales taxes amounting to over 1.1 billion euros. The European Public Prosecutor's Office, based in Luxembourg, confirmed the initiation of a criminal investigation against a German corporate group operating in the sports apparel sector. The alleged offenses are said to have occurred not only in Germany but also in Austria, to the detriment of the EU budget. While the company was not named, Adidas confirmed the searches and emphasized its cooperation with the authorities. In addition to the company headquarters, other business locations and private residences of employees were searched. According to an insider, the suspected tax loss amounts to more than 1.1 billion euros, a figure first reported by Handelsblatt. However, neither the EPPO nor the German customs authority nor Adidas would comment on the exact amount of damages or the number of people involved. Interestingly, Adidas does not expect significant financial impacts from the investigations. The company, which has been aware of the investigation for years, attributed the issue to differing interpretations of German and European law and underscored its ongoing commitment to cooperation with the authorities. The questionable actions are said to have taken place between October 2019 and August 2024. In 2022, Adidas already hinted at higher provisions for customs-related risks without specifying exact figures. These provisions are part of a one-time operating loss of 350 million euros, which also included costs for the withdrawal from Russia, a settled legal dispute, and restructuring measures. According to insiders, Adidas has already settled part of the tax and customs claims.