As IKEA’s plans to expand in India take hold, French MEP, Eva Joly, and her colleagues have produced a report showing the furniture giant has avoided paying at least 1 billion euros, SKr 9.5 billion, in tax over the past six years. The European Commission is now to investigate IKEA’s set-up.
IKEA minimises its tax by moving money between different parts of the group and between different countries. The Commission recently introduced a proposal to tighten legislation on tax avoidance, but according to Eva Joly this will not fill all the loopholes. She says, “It is damaging for all of society. Remember the French Revolution started because the nobility did not pay tax. Today multinational companies and the rich manage to avoid tax and that is a reminder of the old French regime.”
IKEA points out that the company pays its taxes, “completely in accordance with national and international tax regulations”.