Russia’s Investigation Committee has again launched a criminal probe alleging that IKEA’s German division committed tax fraud when it failed to pay taxes upon its sale of stock in a Russian subsidiary, IKEA MOS, Russia’s Legal Information Agency (RAPSI) reported today. IKEA MOS owns 14 shopping centers in Russia.
The sale by the German entity, IKEA Einrichtungs GmBH, to Dutch company, Fuprin Holding VI.B.V., took place in 2011.
IKEA claims that appropriate tax was paid to Germany on the sale in accordance with the 1996 Germany-Russia double tax treaty. Russia claims the sale was undervalued and that tax is due Russia of over 32 billion rubles (USD 509 million).
According to a report by Kommersant, a case brought by Russia’s Investigation Committee on October 7 concerning the same transaction was declared illegal by Russia’s prosecution service a few hours after the case was opened.
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