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In this video segment, Sam Parr explains how Nike allegedly reduces its U.S. corporate tax burden by using a Bermuda‑registered shell company that holds the "swoosh" trademark. The U.S. operating entity generates, for example, $10 billion in revenue, but instead of paying tax on the full amount, the Bermuda entity charges a $9 billion royalty for the use of the trademark. This shifts most of the profit to the zero‑tax jurisdiction, leaving only $1 billion of taxable income in the United States, which is then taxed at the U.S. corporate rate (about 20%). The Bermuda company, meanwhile, pays no tax on the royalty income, creating a massive tax advantage for Nike.
