Giants companies like Nike resort to tax avoidance techniques by establishing headquarters on tax-friendly countries like the Netherlands, allowing them to pay minimal taxes on billions of dollars of revenue, partly because of certain rules that allow royalty income to be exempted from taxes.
Big companies, like Nike and Apple, use tax strategies to pay very low tax rates on their profits. Though it seems shady, it is technically legal and accepted by government tax codes.
A US company in the Netherlands avoided paying taxes on $10 billion of revenue by using IP royalties. A subsidiary in Bermuda charged the Netherlands company $9 billion in royalties for the use of the swoosh IP, allowing for a nearly tax-free transaction.