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MEPs claim furniture retailer IKEA has avoided €1bn in taxes over the past six years and €11.6m in the UK alone in its latest reported year.


A 34-page report, commissioned by The Greens/EFA group in the European Parliament, accuses the UK’s largest home retailer of having created a complex corporate structure designed to avoid tax.


The report says IKEA makes each of its national subsidiaries pay a royalty payment to itself in order to shift profits to low or no tax jurisdictions.


It says the payments, which amount to a 3 per cent royalty fee on revenue, are paid to a group company in the Netherlands, which acts a conduit for profits to be moved to tax havens.


In 2014, the latest year examined by the report, The Greens/EFA group say IKEA reduced its UK tax bill by 60 per cent, saving it €11.6m, by paying a €55.3m fee on its sales of €1.84bn.


Over the weekend, The European Commission said it would examine the Greens/EFA report, while IKEA responded by saying it was “fully committed to manage its operations in a responsible and sustainable way” and that “we pay our taxes in full compliance with national and international tax rules and regulations.”


Links
Download the Greens/EFA Report on IKEA*