Ikea Accused of Funneling Money, Evading $1B in Taxes

How do you say "large-scale tax avoidance" in Swedish? That's what a new report from the European Parliament's Greens/European Free Alliance group is accusing Ikea of, to the tune of $1.1 billion, per CNNMoney. The report alleges that the retail giant funneled money from its stores in highly taxed countries around Europe through a Dutch subsidiary, and possibly also through Luxembourg and Lichtenstein, so it could reap significant tax savings, notes Reuters.

This type of "profit shifting"—in which headquarters for multinational companies are set up in low-taxed nations—is common in Europe, CNN notes. Ikea's response, via a statement: "We pay our taxes in full compliance with national and international tax rules and regulations." The European Commission says it's going to delve more into the supposed tax avoidance, which Reuters notes is alleged to have taken place over a six-year period. (Ikea has been taken to task on its minimum wage, too.)