EU opens probe into IKEA’s tax benefits

The European Commission has opened an investigation into tax benefits granted by the Netherlands to Swedish furniture giant IKEA. The commission will investigate two tax rulings by the Netherlands for Inter IKEA, one of the two groups that operate the IKEA business in Europe. It suspects the rulings have allowed Inter IKEA to pay less tax in breach of EU competition rules. The EU’s regulators allege that the Netherlands has allowed IKEA to shift profits to Luxembourg and Liechtenstein where the money was not taxed. EU hold the view that its states cannot let some companies pay less tax by allowing them to shift their profits elsewhere.