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Ikea accused of European-wide tax dodge

Feb 17

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17/02/2016 16:21  RssIcon

New research from the Green Party reveals extent of avoidance

Ikea has been accused of avoiding up to €1 billion ($1.1 billion) in corporate taxes between 2009 and 2014, according to a report by Green Party ministers in the European Parliament.

The new report released this week details how IKEA has structured itself to dodge €1 billion in taxes over the last 6 years using onshore European tax havens.

 

 

The report authors say that IKEA is using a series of tax loopholes in different European countries, namely the Netherlands, Belgium and Luxembourg to avoid paying taxes.

In one example the company shifts royalty payments in and out the Netherlands untaxed, and before a proportion of the money ends up in Liechtenstein. 

"We estimate it amounts to €35 million of missing tax revenues in Germany, €24 million in France and €11.6 million in the UK. Countries like Sweden, Spain and Belgium are likely losing between €7.5 and €10 million as well." say the European Green group in a statement on their website.

The European Commission has said it will investigate the claims.

The Greens also stated that European corporate tax reforms that have been presented to the European Commission will still allow companies to practice tax avoidance.

Ikea has said that it is fully committed to managing its operations in a responsible and sustainable way.

“We pay our taxes in full compliance with national and international tax rules and regulations,” Ikea said in a statement.

"We are committed to further develop our business in Europe and look forward to the continued dialogue on how to develop a harmonized and clear international tax system," it added.

 

See our list of companies who score an Ethical Consumer worst rating for tax avoidance strategies and tweet them >

 

 

 

 

 


 

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