Ikea's tax affairs to be investigated by the EU

Ikea's tax affairs to be investigated by the EU

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

The European Commission said it was looking into two tax rulings issued to Inter Ikea.

Ikea is complex network of companies split between INGKA holding, the retailer, and the Inter Ikea group, which owns the brand and intellectual property, and operates the franchise businesses.

Under such arrangements, Inter IKEA Systems in the Netherlands records all revenue from IKEA franchise fees worldwide collected from the IKEA shops.

Celtic's record run ends at 69 after hammering by Hearts
I thought in the first half particularly they were physically better than us and they thoroughly deserved their lead. And Rodgers made sure he reserved some praise for his own stars. "But I also want to congratulate my players".

Ikea also negotiated a deal in 2006 with the tax service allowing it to transfer a significant portion of its profits to Luxembourg, where it is not required to pay tax. The money has allegedly been illegally shifted to Luxembourg and Liechtenstein, where IKEA pays less or no tax.

According to Business Insider, EC declared the tax ruling illegal in 2011 and Ikea restructured as a new tax agreement was brought in. As a result, the 2006 tax ruling was no longer applicable.

However, as a result of the Commission decision, I.I. Holding should have started paying corporate taxes in Luxembourg from 2011, the Commission noted.

The commission has already trained its sights on Netherlands's tax rulings in the past. Systems bought the IP rights formerly held by Holding, using an intercompany loan from its Lichtenstein parent company. It also endorsed the interest to be paid under the intercompany loan to the parent company in Liechtenstein, and the deduction of these interest payments from Inter IKEA Systems' taxable profits in the Netherlands.

Closer look needed ... At chain migration, Visa Lottery
FAIR urges its members to contact their members of Congress and urge them to end chain migration and eliminate the visa lottery. The perpetrator of the October attack entered the USA through the visa lottery.

The role of EU State aid control is to ensure that Member States do not give selected companies a better tax treatment than others, via tax rulings or otherwise. Another ruling from the Dutch tax authorities approved the price paid by Systems for the acquisition of the IP.

The news came after leaked documents showed that Apple had chosen to move a subsidiary from Ireland to Jersey in order to continue avoiding billions in taxes, after an European Union crackdown in 2013. This means that the payments between two companies in the same group should be in line with arrangements that take place under comparable conditions between independent companies (so-called "arm's length principle").

The European Commission is not so much anxious about different countries in the European Union having different tax policies, in fact considering it is supposed to be one, seamless market, there are a whole range of company tax rates and policies across the EU. In particular, it will assess if the level of the annual license fee reflects Inter IKEA Systems' contribution to the franchise business.

Ikea said it complies with all tax rules, and would cooperate with regulators.

Trump Goes After Post Reporter in Photo Flap
Trump posted a screengrab of Weigel's Tweet on Saturday, along with photos of him standing in front of a packed arena. He continued: "CNN'S slogan is CNN, THE MOST TRUSTED NAME IN NEWS".

Related Articles

  • Angels Sign Zack Cozart to Three-Year, $38 Million Deal

    Angels Sign Zack Cozart to Three-Year, $38 Million Deal

    That makes sense considering incumbent shortstop Andrelton Simmons is one of the most valuable defenders in the game today. The 32-year-old set career highs with a.297 average, .385 on-base percentage.548 slugging percentage and 24 home runs.
    Mohali Test: Rohit Sharma's double ton helps India level series

    Mohali Test: Rohit Sharma's double ton helps India level series

    But everyone will agree that it was Rohit Sharma who was the star of the show. India's Shreyas Iyer acknowledges the cheers on completing his half century.
    Sen. Kirsten Gillibrand Says Trump Should Resign

    Sen. Kirsten Gillibrand Says Trump Should Resign

    Kirsten Gillibrand says President Donald Trump's latest tweet about her was a "sexist smear" aimed at silencing her voice. I've heard these women's testimony and many of them are heartbreaking".
  • Marvin Lewis, Bengals planning to mutually part ways

    Marvin Lewis, Bengals planning to mutually part ways

    Hired in 2003, Lewis has been the NFL's second-longest tenured head coach behind Patriots' Bill Belichick. The question now is if they can muster some positive emotion to compete with a likely playoff-bound foe.
    Google says 2017 was the year we asked: How?

    Google says 2017 was the year we asked: How?

    Globally, Matt Lauer was the most searched person, followed by Meghan Markle , Nadia Toffa , Harvey Weinstein , and Kevin Spacey . September's solar eclipse was the seventh most popular US search term, and the third among news searches.

    Real Madrid's Gareth Bale hails 'great' victor , slams VAR

    But Cristiano Ronaldo equalized early in the second half and Bale netted the victor less than a minute after replacing Karim Benzema.
  • Bigg Boss 11: Hiten Tejwani gets evicted from Salman Khan's show

    Bigg Boss 11: Hiten Tejwani gets evicted from Salman Khan's show

    Shilpa joins the discussion and says that they can eat anything out of the menu inclusing bheja fry (Vikas) or snake (Arshi). The contestants who are playing the audience declare Arshi-Vikas as the victor , eventually making them win the round 1.

    Nazareth cancels Christmas celebration over Trump Jerusalem move

    Trump's decision spurred thousands of Palestinians to take to the streets in protests and clashes with Israeli security forces. Since Trump's controversial announcement last week, at least 12 rockets or mortars have been fired from Gaza towards Israel.
    Facebook to cease diversion of worldwide  ad revenue via Dublin

    Facebook to cease diversion of worldwide ad revenue via Dublin

    Facebook paid just £5.1m in corporation tax in 2016, according to a Companies House filing. Facebook has since come under pressure from the U.S. and Europe for its tax practices.
  • Could remains found in Montana be missing Skelton boys?

    Could remains found in Montana be missing Skelton boys?

    Andrew, Alexander, and Tanner Skelton were last seen in their father's backyard on November 26., 2010. The boys' father John Skelton is serving a 15 year prison sentence for unlawful imprisonment .
    Jets DL Muhammad Wilkerson out Sunday due to 'coach's decision,' report says

    Jets DL Muhammad Wilkerson out Sunday due to 'coach's decision,' report says

    He didn't specify why, but stated that it was not injury related and was instead a "coach's decision ", per several accounts. Wilkerson is in the second year of the five-year contract he signed in 2016 and he's set to make $16.75 million next season.
    Program to honor veterans' grave sites on Saturday

    Program to honor veterans' grave sites on Saturday

    Members of the Armed Forces will place remembrance wreaths for each branch of the military, as well as one for POW/MIAs and KIAs. Wreaths Across America is a non-profit organization that teaches about the service and sacrifice of our nation's veterans.