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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 the general public became known tidbits thanks to RIA Novosti, which referred to the press service of the court. Tax Inspectorate makes a claim in respect of IKEA on a considerable amount, in general - 455 million rubles.

Boris Y. has radically opposite view. He confidently said that the lower courts that have considered the dispute IKEA and tax authorities, carried contrary to generally accepted legal practice solutions. Justice supported the Inspectorate of the Federal Tax Service. According to Titov, the tax model used by IKEA typical for doing business in Russia, and, moreover, consistent with the general international practice. That is why the events disturbed 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.

Manual IKEA said that the work carried out by tenants may be used exclusively for business activities, respectively, they can not be attributed to the income of the Swedish company. Moreover, most of the works to be dismantled if the tenant space will decide 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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