IKEA Netherlands may still have to pay millions of euros & #8217; s to the Dutch Tax Authorities at the end of this year.
The European Commission is currently investigating two agreements made with the Tax Authorities in 2006 and 2011. That investigation started last year and must be completed before the end of this year. Competition Commissioner Verstager has already suffered two defeats in this case. She will also have this material in her portfolio for the next five years.
It concerns two Dutch tax rulings that were in favor of IKEA. The first ruling from 2006 to 2011 allowed IKEA to transfer profits to Luxembourg. The company did not have to pay tax on it. The European judges already found this agreement illegal.
The 2011 ruling was drafted because the previous one was no longer valid. This second ruling made it possible for IKEA to transfer profits to Liechtenstein and thus not to pay taxes again. If that ruling does not reach the finish line either, Ikea will still have to pay tax in the Netherlands.