Foreign Affairs
European Commission to investigate Ikea company on taxation breach

The European Commission will investigate the tax structure of Ikea company to establish whether European legislation of state aid was breached. Reports said that Ikea company, which has its headquarters in The Netherlands, was given preferential taxation by other companies.

European Commission for Competition, Margrethe Vestager, stated that big, small and medium sized companies should pay tax according to what is requested of them, without preferential treatment.

An Ikea spokesperson, however, said that the company’s tax structure is according to European laws.

The European Commission’s decision is part of a series of other decisions taken by the European Competition Authority to safeguard the agreement on taxation between European countries and multi-national companies.