Adidas accused of massive tax evasion in Russia

RT.com
19 Sep 2022, 20:15 GMT+10

The German sportswear company reportedly didn?t pay fired staff promised compensation after leaving the country

German sportswear giant Adidas failed to pay 10 billion rubles ($166 million) in taxes in Russia after the company announced plans to quit the country in March, a number of Russian media outlets reported on Monday, citing the Mash Telegram channel.

The non-payment was reportedly revealed by Alexander Khaminsky, the head of the Center for Law Enforcement in Moscow Region, who examined Adidas' financial records. According to Khaminsky, the company's Russian subsidiary transferred its stock to local suppliers shortly after it announced its exit plan.

The Mash Telegram channel claims that the corporation initiated mass layoffs and its former employees received just one fixed payment instead of five that had been promised.

Khaminsky reportedly filed complaints with local authorities and asked Russian Prime Minister Mikhail Mishustin to look into the situation.

Adidas halted the operation of its stores and e-commerce site in Russia in early March following similar decisions taken by other athletic-wear makers like Puma and Nike. Back then, the company said it would continue to pay employees in Russia and "take future business decisions and action as needed." It also suspended its partnership with the Russian Football Union.

Later, Adidas said its decision to leave Russia had reduced its revenues by more than €100 million during the second quarter.

For more stories on economy & finance visit RT's business section

(RT.com)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Mexico Star.

More Information

14 ℃

Mostly Cloudy in Mexico City

Lifestyle

Section

Pak senator hits out at govt, says minorities face 'discrimination' in foreign mission hirings; being put into sanitation jobs

Islamabad [Pakistan], September 28 (ANI): Highlighting that every citizen must have equal status, Pakistani Senator Danesh Kumar raised the issue ...

Child custody in South Africa: what to do when co-parenting goes wrong

The COVID-19 lockdowns severed many families, where they found themselves having a limited period to decide who would live where ...

Iran's Anti-Veil Protests Draw on Long History of Resistance

A young woman climbs to the top of a car in the middle of Mashhad, a conservative Iranian city famed ...

IRCTC scam case: Court grants Tejashwi more time to reply on CBI bail cancellation plea

New Delhi [India], September 28 (ANI): Delhi's Rouse Avenue court on Wednesday granted more time to Bihar Deputy Chief Minister ...

PM Modi, President express condolences for 7 deaths in UP's Lakhimpur Kheri

New Delhi [India], September 28 (ANI): Prime Minister Narendra Modi on Wednesday expressed condolences to the bereaved families of the ...

ADB pledges USD 14 billion for food security in Asia and Pacific by 2025

Manila [Philippines], September 28 (ANI): The Asian Development Bank (ADB) has announced it plans to provide at least USD 14 ...

International

Section