Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

IKEA to Face EU Order to Pay Millions in Dutch Back Taxes: Sources

The European Commission is now racing to wrap up the two-year investigation into the brand owner of IKEA, known for its giant out-of-town budget furniture stores, but the timing may still slip as it weighs the scope of the case.

Reuters

Updated:October 7, 2019, 2:29 PM IST
facebookTwitter Pocket whatsapp
IKEA to Face EU Order to Pay Millions in Dutch Back Taxes: Sources
Image for representation. (Reuters)

Brussels: IKEA brand owner Inter IKEA could be ordered to pay millions of euros in Dutch back taxes by the end of the year, two people familiar with the matter said, as EU competition enforcers push on with their crackdown against unfair tax deals granted to multinationals.

The European Commission is now racing to wrap up the two-year investigation into the brand owner of IKEA, known for its giant out-of-town budget furniture stores, but the timing may still slip as it weighs the scope of the case, they said.

The EU executive declined to comment.

Launched in 2017, the EU's investigation focuses on Inter IKEA Systems in the Netherlands, which operates IKEA's franchise business and records all revenue from its franchise fees worldwide collected from IKEA shops.

The spotlight is on two tax rulings granted by the Dutch tax authorities in 2006 and 2011, which the European Commission said have significantly reduced Inter IKEA Systems' taxable profits in the Netherlands and given it an unfair advantage.

The EU competition enforcer said the first tax ruling, which covered 2006 to 2011, resulted in a significant part of Inter IKEA Systems' franchise profits shifting to a Luxembourg unit where it was not taxed.

A 2011 ruling, brought in after the European Commission declared the first deal illegal, allowed a substantial part of the company's franchise profits after 2011 to be transferred to its Liechtenstein parent.

The EU order comes after Europe's second-highest court last month backed the EU executive's methodology in its cases against Fiat and Starbucks.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
AGL 133.90 -9.04
IWML 1,460.00 -3.04
Vedanta 114.00 -12.64
Bharti Infratel 214.55 -3.96
Power Finance 109.30 -5.41
Top Gainers
Company Price Change %Gain
ITC 197.60 0.05
Top Losers
Company Price Change %Gain
Tata Motors 129.00 -11.03
Tech Mahindra 743.90 -8.14
Tata Steel 381.55 -7.57
M&M 456.40 -7.50
HCL Tech 534.10 -6.98

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results