EU: Ikea’s tax affairs to be investigated

The European Commission is preparing to open an in-depth investigation into Ikea’s corporate tax structure.

The Commission said Dutch-based Inter Ikea, one of the Swedish giant’s two divisions, may have been given unfair tax advantages by the Netherlands.

European Competition Commissioner Margrethe Vestager said all firms “big or small, multinational or not, should pay their fair share of tax.”

The Commission will look at whether Ikea’s tax affairs breach EU rules on state aid.

Under EU law, member states cannot give selective tax benefits to multinational groups that are not available to other firms.

“The Commission has concerns that two [Dutch] tax rulings may have given Inter Ikea Systems an unfair advantage compared to other companies,” the regulator said.

The move is the latest crackdown by the EU competition authority on tax deals between EU countries and multinationals.

A spokesman for Inter Ikea Group said the way it had been taxed “has in our view been in accordance with EU rules. It is good if the investigation can bring clarity and confirm that,” he added.

Full Content: The New York Times

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