IKEA Netherlands may still have to pay millions of euros to the Dutch Tax Authority by the end of this year.
The European Commission is currently investigating two agreements made with the Tax Authority in 2006 and 2011. This investigation started last year and is expected to be completed by the end of this year. Competition Commissioner Verstager has already suffered two defeats in this dossier. She will have this matter back in her portfolio for the next five years as well.
These concerns two Dutch tax rulings that were favorable to IKEA. The first ruling, from 2006 to 2011, allowed IKEA to shift profits to Luxembourg. The company did not have to pay taxes on these profits there. European courts have already deemed this arrangement illegal.
The 2011 ruling was created because the previous one was no longer valid. This second ruling allowed IKEA to shift profits to Liechtenstein and again avoid paying taxes. If this ruling also fails to pass the final assessment, Ikea will have to pay taxes in the Netherlands after all.