EU regulators to investigate #Ikea Dutch tax deals

“All companies, big or small, multinational or not, should pay their fair share of tax. Member states cannot let selected companies pay less tax by allowing them to artificially shift their profits elsewhere,” European Competition Commissioner Margrethe Vestager said.

Sven Giegold, tax spokesperson of the Greens/EFA group in the European Parliament, said that this inquiry was a direct consequence of the report the Greens/EFA group published in February 2016 that already highlighted doubtful tax practices by the Swedish company: "Europe shows its teeth against tax dodging. As many other big companies, IKEA has been using a series of tax loopholes for years to avoid paying taxes. It is the duty of the European Commission to stop these unfair behaviours and make sure that companies pay their taxes where they make their profits.

"The investigation should not be limited to the Netherlands, obviously the core of IKEA's tax avoidance system, but should also look at Luxembourg and Belgium. We expect that in the end IKEA has to pay back state aides to the Dutch state. We don't talk about peanuts in missing tax revenues. In 2016, we estimated that IKEA may have shifted €1 billion between 2009 and 2014; revenues which could be used for schools, hospitals or investment in public transports. IKEA’s tax practices are a theft to society."

A 2011 ruling, brought in after the Commission declared the first deal illegal, allowed a substantial part of the company’s franchise profits after 2011 to be transferred to its Liechtenstein parent.

Fast-food chain McDonald’s (MCD.N) and French energy company Engie (ENGIE.PA) are also in the EU crosshairs over their Luxembourg tax deals.

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The Commission has to date ordered Apple (AAPL.O) to pay a record amount of back taxes up to 13 billion euros ($15.3 billion) to Ireland, Starbucks (SBUX.O) up to 30 million euros to the Netherlands and Amazon (AMZN.O) 250 million euros to Luxembourg.

Last month the Commission launched an investigation into a British tax exemption for multinational companies set up by the then-Conservative-led government in 2013 to attract companies to set up headquarters in Britain.