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Paradise Papers Allege Nike Made Billions From a Bermudan Tax Haven

The company says that’s fine: “Nike fully complies with tax regulations."

Nike is enjoying its trip to Bermuda.

That's one revelation from the Paradise Papers, a huge leak of financial documents handed to a German newspaper. The records, most of which relate to offshore tax havens, were released Nov. 5 by the International Consortium of Investigative Journalists.

Among the findings: The Paradise Papers allege that Oregon sportswear giant Nike has been reaping spectacular rewards from moving its trademark profits to a subsidiary in Bermuda, where the U.S. can't get at them. (The company says that's fine: "Nike fully complies with tax regulations," Nike told ICIJ.) Here's how much the Papers say Nike has lowered its tax payments.

34.9 percent
Nike's worldwide effective tax rate in 2006, the year before it began shifting money to Bermuda

13.2 percent
Nike's worldwide effective tax rate in 2016

3 percent
The tax rate for Nike International, which is based in Bermuda

$12.2 billion
Nike's offshore profits held offshore and untaxed by the U.S.