Editing IKEA (section)

==Corporate structure==
{{Main|Stichting INGKA Foundation|Ikano|Ingvar Kamprad}}
{{IKEA ownership chart}}

IKEA is owned and operated by a series of [[not-for-profit]] and [[for-profit]] corporations. The corporate structure is divided into two main parts: operations and franchising.

[[INGKA Holding]] B.V., based in the Netherlands, owns the Ingka Group, which takes care of the centres, retails, customer fulfillment, and all the other services related to IKEA products. The IKEA brand is owned and managed by [[Inter IKEA Systems]] B.V., based in the Netherlands, owned by [[Inter IKEA Holding]] B.V. Inter IKEA Holding is also in charge of design, manufacturing and supply of IKEA products.

Inter IKEA Systems is owned by Inter IKEA Holding BV, a company registered in the Netherlands, formerly registered in Luxembourg (under the name Inter IKEA Holding SA). Inter IKEA Holding, in turn, is owned by the Interogo Foundation, based in Liechtenstein.<ref name="Economist, May 11, 2006">{{Cite news|url=http://www.economist.com/business/displaystory.cfm?story_id=6919139|title=Flat-pack accounting|date=11 May 2006|newspaper=[[The Economist]]|access-date=10 June 2009|archive-date=24 May 2012|archive-url=https://archive.today/20120524/http://www.economist.com/business/displaystory.cfm?story_id=6919139|url-status=live}}</ref><ref>{{cite web|url=http://www.inter.ikea.com/en/about-us/Our-owner/|title=Our owner|date=1 September 2016|website=Inter IKEA Group|access-date=6 January 2017|archive-date=11 March 2018|archive-url=https://web.archive.org/web/20180311192646/http://www.inter.ikea.com/en/about-us/Our-owner/|url-status=live}}</ref> In 2016, the INGKA Holding sold its design, manufacturing and logistics subsidiaries to Inter IKEA Holding.<ref name=":0">{{cite web|url=https://www.reuters.com/article/us-ikea-restructuring-idUSKCN0XC0IA|title=IKEA finalizing its biggest overhaul in decades|date=15 April 2016|work=Reuters|access-date=6 January 2016|archive-date=18 June 2019|archive-url=https://web.archive.org/web/20190618105037/https://www.reuters.com/article/us-ikea-restructuring-idUSKCN0XC0IA|url-status=live}}</ref>

In June 2013, Ingvar Kamprad resigned from the board of Inter IKEA Holding SA and his youngest son Mathias Kamprad replaced Per Ludvigsson as the chairman of the holding company. Following his decision to step down, the 87-year-old founder explained, "I see this as a good time for me to leave the board of Inter IKEA Group. By that we are also taking another step in the generation shift that has been ongoing for some years."<ref name=":1" /> After the 2016 company restructure, Inter IKEA Holding SA no longer exists, having reincorporated in the Netherlands. Mathias Kamprad became a board member of the Inter IKEA Group and the Interogo Foundation.<ref>{{cite web|url=http://www.di.se/nyheter/ingvar-kamprads-son-bort-fran-maktposition/|title=Ingvar Kamprads son bort från maktposition|date=17 October 2016|website=Dagens Industri|access-date=6 January 2017|archive-date=5 January 2017|archive-url=https://web.archive.org/web/20170105083600/http://www.di.se/nyheter/ingvar-kamprads-son-bort-fran-maktposition/|url-status=live}}</ref> Mathias and his two older brothers, who also have leadership roles at IKEA, work on the corporation's overall vision and long-term strategy.<ref name=":1">{{cite news|title=IKEA's new chairman likes PAX wardrobes, and that's about all we know|url=http://qz.com/91159/ikeas-new-chairman-likes-pax-wardrobes-and-thats-about-all-we-know/|access-date=6 June 2013|newspaper=Quartz|date=5 June 2013|author=Gina Chon|archive-date=2 July 2015|archive-url=https://web.archive.org/web/20150702144203/http://qz.com/91159/ikeas-new-chairman-likes-pax-wardrobes-and-thats-about-all-we-know/|url-status=live}}</ref>

===Control by Kamprad===
[[File:Ingvar Kamprad Haparanda June 2010.jpg|thumb|upright|The late [[Ingvar Kamprad]], founder of IKEA]]

Along with helping IKEA make a non-taxable profit, IKEA's complicated corporate structure allowed Kamprad to maintain tight control over the operations of INGKA Holding, and thus the operation of most IKEA stores. The INGKA Foundation's five-person executive committee was chaired by Kamprad. It appoints a board of INGKA Holding, approves any changes to INGKA Holding's bylaws, and has the right to preempt new share issues. If a member of the executive committee quits or dies, the other four members appoint their replacement.

In Kamprad's absence, the foundation's bylaws include specific provisions requiring it to continue operating the INGKA Holding group and specifying that shares can be sold only to another foundation with the same objectives as the INGKA Foundation.<ref name="Economist, May 11, 2006" />

===Financial information===
[[File:IKEA Delft 2.JPG|thumb|IKEA Concept Centre in [[Delft]] – the head office of Inter IKEA Systems B.V. which owns the IKEA trademark and concept]]

The net profit of IKEA Group (which does not include Inter IKEA systems) in fiscal year 2009 (after paying franchise fees to Inter IKEA systems) was €2.538{{nbsp}}billion on sales of €21.846{{nbsp}}billion. Because INGKA Holding is owned by the non-profit INGKA Foundation, none of this profit is taxed. The foundation's nonprofit status also means that the Kamprad family cannot reap these profits directly, but the Kamprads do collect a portion of IKEA sales profits through the franchising relationship between INGKA Holding and Inter IKEA Systems.

As a franchisee, the Ingka Group pays 3% of [[royalties]] to Inter IKEA Systems.<ref name="greens-efa.eu" /><ref name=":6" /> Inter IKEA Systems collected €631{{nbsp}}million of [[franchise fee]]s in 2004 but reported pre-tax profits of only €225{{nbsp}}million in 2004. One of the major pre-tax expenses that Inter IKEA systems reported was €590{{nbsp}}million of "other operating charges". IKEA has refused to explain these charges, but Inter IKEA Systems appears to make large payments to I.I. Holding, another Luxembourg-registered group that, according to ''[[The Economist]],'' "is almost certain to be controlled by the Kamprad family". I.I. Holding made a profit of €328{{nbsp}}million in 2004.

In 2004, the Inter IKEA group of companies and I.I. Holding reported combined profits of €553m and paid €19m in taxes, or approximately 3.5 percent.<ref name="Economist, May 11, 2006" />

IKEA has avoided millions of euros in taxes<ref>{{Cite web |url=https://europeangreens.eu/news/ikea-report-ikea-avoided-1-billion-taxes-using-european-taxation-system-its-own-benefit |title=IKEA report: IKEA avoided €1 billion in taxes by using the European taxation system to its own benefit {{pipe}} European Greens |access-date=30 October 2023 |archive-date=30 October 2023 |archive-url=https://web.archive.org/web/20231030124933/https://europeangreens.eu/news/ikea-report-ikea-avoided-1-billion-taxes-using-european-taxation-system-its-own-benefit |url-status=dead }}</ref> performing some intricate mechanisms<ref>{{Cite news |last=Boffey |first=Daniel |date=2017-12-18 |title=EU investigates Ikea after Dutch deals reduce tax bill by €1bn|work=The Guardian |url=https://www.theguardian.com/business/2017/dec/18/eu-probes-ikea-after-dutch-deals-reduce-tax-bill-by-1bn |access-date=2023-11-15 |issn=0261-3077}}</ref> and it was noted by the EU back in 2017. The main countries where they operated their business using tax loopholes were the [[Netherlands]], [[Luxembourg]] and [[Belgium]].

[[Public Eye (organization)|Public Eye]], a non-profit organisation in Switzerland that promotes corporate responsibility, has formally criticised IKEA for its tax avoidance strategies. In 2007, the organisation nominated IKEA for one of its Public Eye "awards", which highlight corporate irresponsibility.<ref>{{cite web|url=http://www.evb.ch/en/p11676.html |publisher=[[Erklärung von Bern]] |title=Berne Declaration Public Eye Awards, 2007 Nominations |url-status=dead |archive-url=https://web.archive.org/web/20140409212238/http://www.evb.ch/en/p11676.html |archive-date=9 April 2014 }}</ref>

In February 2016, the [[The Greens–European Free Alliance|Greens / EFA]] group in the [[European Parliament]] issued a report entitled ''[https://www.greens-efa.eu/legacy/fileadmin/dam/Documents/Studies/Taxation/Report_IKEA_tax_avoidance_Feb2016.pdf IKEA: Flat Pack Tax Avoidance]'' on the tax planning strategies of IKEA and their possible use to avoid tax in several European countries. The report was sent to [[Pierre Moscovici]], the European Commissioner for Economic and Financial Affairs, Taxation and Customs, and [[Margrethe Vestager]], the [[European Commissioner for Competition]], expressing the hope that it would be of use to them in their respective roles "to advance the fight for tax justice in Europe".<ref name="greens-efa.eu" /><ref>{{cite web | url=https://www.statista.com/statistics/241801/gross-profit-of-ikea-worldwide/ | title=Gross profit of IKEA worldwide 2009–2018 {{pipe}} Statista | access-date=14 December 2017 | archive-date=15 December 2017 | archive-url=https://web.archive.org/web/20171215110656/https://www.statista.com/statistics/241801/gross-profit-of-ikea-worldwide/ | url-status=live }}</ref>