Nike Research Paper Example | Topics and Well Written Essays - 500 words - 1

Nike - Research Paper Example In the year 2012, Nike paid Indonesian workers 1 million US dollars after it emerged that the workers had worked an overtime of 600,000hrs for two years without pay (The Guardian, 2012). In the year, 1987, Nike was sued by capitol record for using a beatles song in their advertisement, the paid capitol records $250,000 who had the rights for the song at that time. In late June 2005, a case against Nike by Minor threat of them using their cover photo in their album also led to out of the court settlement where Nike apologized to the band and settled them (Brian, 2002).. Nike like most of the multinational companies has huge stash of profits offshore that it hasn’t paid U.S taxes on. It’s also known that they have paid little or no taxes in these foreign countries. Nike reportedly said that its cache of â€Å"permanently reinvested offshore profits† ballooned from $5.5 billion to $6.7 billion in the past year — this means that the corporation moved up by $1.2 billion of its profits offshore. It also reveals that if it were to pay the U.S taxes on its offshore stash profits, it would be approximately $2.2 billion, which is a tax rate just under 33 percent. The federal income tax is usually known to be 35% deducting any taxes corporations have paid to foreign jurisdictions (CTJ, 2013). With this information it’s easy to reach a conclusion that Nike has paid no tax on its offshore profit stash. Nike has a long list of various offshore subsidiaries others with different names while others bear Nike’s own shoes b rand. In the year 2012, Nike signed a deal with the state of Oregon where its headquarter is based, to enable it pay its current tax for the next 40 years as long as it invests more than 150 million dollars within the state and be able to create 500 jobs within a five-year term (Brian, 2002).. This is a good gesture for Nike by