The European Commission has targeted Swedish furniture store Ikea for accusation of tax avoidance. Two tax treaties with Nerlands could have given Ikea’s franchise subsidiary “an unfair advantage over or companies”, EU competition watchdogs shared. There may be “a violation of EU rules on state aid”.
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“All companies, wher large or small, multinational ornon, should pay ir fair tax share”, SagteEU competition Commissioner Margre Vestager. “Memberstates cannot allow some Unternehmenweniger to pay taxes as y can künstlichverlagern ir profits elsewhere.” In years 2006 to 2011ein, a significant portion of franchise profits of inter Ikea Systemsin was to be relocated to a Luxembourg unit in which weren’t were taxed. That is why company could be an unfair competitive advantage over Konkurrentengekommen, which would constitute a breach of EU rules on state aid.
IKEA welcomes investigation
The furniture company rejected accusations. “The way in which we have been taxed by national authorities is, in our view, in line with EU regulations,” Ikea shared. The audit announced by EU competition guards could bring clarity and confirm this.
The IKEA Group and subsidiary Inter IKEA Systems, which is based in Nerlands, kept to applicable tax laws and regulations wherever y were active, and clarified company. But Ikea will cooperate and answer all questions of authorities.
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The Dutch government is seeking to support EU investigation. Secretary of State for Finance Menno Snel said, according to Dutch news agency ANP, initiation of an official investigation did not mean that re had actually been unlawful government aid. He will appoint an independent commission to investigate, said Snel. There should be no leeway for benefit of individual companies.
The EU Commission has been examining dieSteuervereinbarungen of Member States with InternationalenKonzernen for some time. In November, an investigation into British tax rebates for corporations was initiated.
