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IKEA Was Accused Of Tax Evasion 1 Billion Euros, Apple Starbucks Also Had Similar Experience.

2016/2/22 11:18:00 33

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IKEA

It is the latest case of pnational corporations being accused of tax evasion through profit pfer, and apple and Starbucks have been in similar trouble.

According to a report from the Green Party of the European Parliament, IKEA was accused of large-scale tax evasion in the past 2009-2014 years, up to 1 billion euros (about 7 billion 285 million yuan).

According to a report released in February 12th, IKEA has deliberately pferred its European stores through a subsidiary of Holland.

Through a series of operations, IKEA can finally escape Liechtenstein or Luxemburg's huge tax to EU governments.

In 2014 alone, IKEA was accused of evasion of 35 million euros (about 256 million yuan) in Germany, evasion of 24 million euros (about 175 million yuan) in France and 11 million 600 thousand euros (about 84 million 501 thousand and 400 yuan) in Britain.

Sweden, Spain and Belgium lost about 7 million 500 thousand -1000 million euros (about 54 million 634 thousand and 500 -7284.60 million yuan) tax.

"This (IKEA) furniture, as long as you know the knack, you can easily assemble it, so you also have the opportunity to hide money, and do not occupy the place.

Almost no one will notice, including tax administrators.

The report says.

The European Commission said it would investigate further.

IKEA said: "IKEA group is fully committed to operating in a responsible and sustainable way. We fully comply with the tax system and regulations of the state and the international community."

Profit pfer is not uncommon among multinational enterprises in Europe.

Reached in 1920s

International Taxation

The rule includes an important starting point to prevent duplication of taxes from enterprises operating across countries and regions.

However, with the continuous development of the world economy and globalization, more and more multinational companies begin to take advantage of loopholes in rules to avoid tax.

They set up headquarters in low tax countries, such as Ireland and Luxemburg, and then sent most of their profits in Europe to that country.

Not long ago, the European Union's relevant regulators accused apple of using its subsidiary companies to circumvent the tax revenue generated outside the United States. Apple said it would appeal against the ruling against apple.

Last year, Starbucks was also in trouble.

European Union

Huge fines.

Starbucks signed a tax agreement privately with the Holland government. Starbucks runs all its business in Europe through Holland, and this agreement enables Starbucks to pay only a small part of its revenue as a corporate tax.

For example, in 2014, the pre tax profit of Starbucks's business in Amsterdam was 407 million euros (about 2 billion 964 million yuan), but the corporate tax paid was less than 1% of the pre tax profit, and only 2 million 600 thousand euros (about 18 million 935 thousand and 300 yuan).

The EU is cracking down on the tax avoidance behavior of such enterprises, blocking the loopholes in the law.

Last October, the finance ministers of the group of twenty signed the largest comprehensive international tax reform agreement in the past hundred years. They will work closely to establish new rules for the taxation of multinational companies' profits through close cooperation.

According to the new regulation, even if the enterprise pfers profits, the government can still levy taxes on it.


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