A report that accuses the furniture giant of massive tax avoidance also calls for reforms to close loopholes and increase transparency in the EU tax structure.
Ikea’s tax practices are under the microscope again. The Swedish home goods giant is accused of dodging more than $1.1 billion in taxes between 2009 and 2014.
According to this report, which was commissioned by the Green Party in the European Parliament, Ikea committed “large scale tax avoidance” by purposefully moving money from its European stores through tax havens in Luxembourg, Liechtenstein and the Netherlands.
In 2014 alone, the report says Ikea’s tax avoidance “amounts to €35 million [$39 million] of missing tax revenues in Germany, €24 million [$26.7 million] in France and €11.6 million [$13 million] in the UK,” it explained. “Countries like Sweden, Spain and Belgium are likely losing between €7.5 [$8.4 million] and €10 million [$11.1 million] as well.”
Ikea maintains that the report is inaccurate.
“We pay our taxes in full compliance with national and international tax rules and regulations,” the Swedish company said in a statement.
Ikea says it paid an effective corporate income tax rate of roughly 19 percent last year, Reuters reported.
The European Commission, the European Union’s top regulator, says it will examine the report, which calls for tax reforms that close up loopholes being used by large corporations.
The European Union is becoming more aggressive in cracking down on corporate tax avoiders. Reuters said the commission recently ordered Dutch and Luxembourg authorities to recover $33.4 million from Starbucks and Fiat Chrysler Automobiles.
Alphabet, Amazon and Apple are also “feeling the heat” from the EU, according to Fortune.
What do you thing about big companies being accused of dodging taxes, even when it’s not U.S. taxes? Share your comments below or on our Facebook page.