News IKEA in Russia

Russian Ombudsman protect the interests of IKEA

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boris-titovBoris Titov - Fairly well-known figure in the business. Most recently, media reported on his appeal to the Supreme Arbitration Court of Russia in the case of IKEA. He drew the attention of the head of the Court Anton Ivanov to dispute the Russian subsidiary companies IKEA and the tax office. For the first time, juicy details became known to the general public thanks to RIA Novosti, which referred to the court's press service. The tax office makes a claim against IKEA for a considerable amount, in general - 455 million rubles.

Boris Y. has a radically opposite point of view. He says with confidence that the lower courts, which considered the dispute between IKEA and the tax authorities, made decisions contrary to generally accepted legal practice. Justice supported the Federal Tax Service Inspectorate. According to Titov, the tax model applied by IKEA is typical for doing business in Russia and, moreover, is in line with general global practice. That is why the current events worried domestic businessmen.

The essence of the trial between IKEA and the tax is that the furniture company was underprovided income tax and property tax. Tax Inspectorate announced that the work of the tenants regarding the improvement areas in the mall "Mega", owned by IKEA is one of the articles of the company's revenues. Tax Inspectorate decided to collect taxes on the full amount of work that had been held shopkeepers and catering facilities located in the mall.

The management of IKEA stated that the work performed by the tenants can be used exclusively in business activities, respectively, they cannot be attributed to the income of the Swedish company. Moreover, most of the work performed is subject to dismantling if the tenant of the space decides to terminate the contract with IKEA.

The history of litigation between IKEA and the Federal Tax Service stretches from 2010 years. The initial amount of the fee was more than a billion Russian rubles. However, after many trials it has been lawfully reduced to 455 million.

Boris Y. Titov from mid 2012 been a commissioner for human Entrepreneurs under the President of Russia. One of his most "daring" of proposals made by the government, was the holding of an amnesty convicted for economic crimes.

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