Ikea accused of underpaying over €1 billion in taxes to EU

Ikea avoided paying at least €1 billion (HK$8.77 billion) in taxes owed to European nations over the past six years, the EU’s Green party said as it sought a government investigation of findings in a report it commissioned.

The Greens/EFA group in the European Parliament said the world’s biggest furniture retailer is using loopholes to avoid paying taxes, according to a February 12 statement on the party’s website.

European officials are pushing forward with probes into Apple and Amazon for tax deals they set up in Ireland and Luxembourg respectively.

The EU ruled last month that Belgium’s tax arrangements with about 35 companies, including Anheuser-Busch, were illegal and separately struck down deals involving Starbucks and Fiat.

“Ikea is just the latest example of a major multinational going to great lengths to avoid its tax responsibility,” the Greens said in a statement.

“There is also an urgent need to change the regulatory framework and environment, which facilitates corporate tax avoidance in Europe.”