Adidas Vietnam in tax probe

Adidas Vietnam has pledged its full co-operation to authorities as officials in the country probe the sportswear giant’s accounts.

The Ho Chi Minh City’s tax agency is inspecting the sporting equipment distributor over possible transfer pricing under the related-party transactions scheme.

Adidas Vietnam, which was established in 2009, is licensed to operate as a wholesale distributor, but inspectors discovered a number of “unreasonable” expenses the company paid its partners, which include all companies under the same global system of its parent company, Adidas AG.

The partners include Adidas AG, Adidas Singapore, Adidas International Trading and the company’s retailers, leading tax officials to suspect that it is involved in related-party transactions, reports Tuoitrenews.

For the full story, see the January 2013 edition of Textiles South East Asia. Not a subscriber? Subscribe HERE