PRESS: Russia’s 32 bln rbl case against IKEA started, ends soon

MOSCOW, Oct 20 (PRIME) -- Russia’s Investigative Committee launched a 32 billion ruble tax avoidance case against Swedish furniture maker IKEA, but prosecutors said it is illegal and scrapped it, Kommersant business daily reported on Thursday.

Investigators launched the case against an August 2011 deal when IKEA Einrichtungs GmbH sold 99.9% in local Russian company IKEA Mos, which owned 14 Mega malls and the Khimki business park, to Dutch company Fuprin Holding VI B.V. for 840 million euros, but did not pay about 32 billion rubles in taxes during the deal, Kommersant reported.

But Acting Deputy Prosecutor of the city of Khiki Darya Nastas voided the case several hours later as she found it illegal and groundless, as investigators did not provide evidence that IKEA had violated a 1996 Russian-German agreement on double taxation.

The business daily reported citing a source in the Federal Tax Service that law enforcement authorities did not request consultations from the service. An IKEA representative said that the company paid all the necessary taxes in Germany and is ready to provide the documents.

(62.5841 rubles – U.S. $1)

End