Corporate tax avoidance
IKEA cheating EU governments out of massive tax revenue according to new research
TAAKS AVOYD: this new item of furniture, easy to assemble if you know the right tricks, gives you the opportunity to hide your money, and does not take up much space. People, including tax administrations will barely notice it. new research commissioned by the Greens. European Commission's anti-tax avoidance package, published in January 2016, doesn’t go far enough to prevent this kind of tax avoidance. While some aspects will provide tax administrations with more information about the two IKEA Groups, the public won’t know more. Moreover, the proposal falls short of solutions for several tricks used by IKEA: no public disclosure of sweetheart tax deals (so-called tax rulings), no tackling of the harmful notional interest deduction scheme used by the IKEA Group in Belgium for example. As Greens, we are calling for more ambitious tax reforms at European level. The report calls for:
- An improved anti-avoidance package that will tackle more tax loopholes as shown by this practice case. We urge Member States to adopt a broader set of measures to truly work for tax justice in Europe
- Greater transparency of multinationals’ activities: this means we urgently need public country by country reporting and public disclosure of sweetheart tax deals negotiated between tax administrations and large companies.
- Moving towards more tax harmonisation in Europe. It is time for all Member States to adopt a common consolidated corporate tax base (CCCTB) and to stop the tax war some are engaged in, which only leads to a race to the bottom.
- Considering the possibility of national and European authorities opening formal investigations on the IKEA case, as has been done for other big companies in the past.