Ikea vows to fight Australian Taxation Office probe over claims it owes $171m
Ikea has vowed to fight a probe by the Australian Taxation Office over claims the Swedish home furnishings giant owes $171 million in alleged unpaid taxes.
In a statement following the lodgement of its accounts last week, which detailed the tax dispute, Ikea Australia said it strongly disagreed with the ATO’s audit over its financial performance.
The ATO has served the company with position papers relating to an audit of the 2016 to 2020 income years, claiming Ikea owed about $171m from withholding royalty taxes.
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By continuing you agree to our Terms and Privacy Policy.“We strongly disagree with the ATO’s current audit position and intend to dispute any tax-related liability that may arise,” Ikea Australia said in a statement on its website.
“We do not consider it probable that tax is payable to any of the matters subject to audit and as such, no provision has been set aside to do so.”
It has engaged external legal advisers in relation to the matter.
Ikea Australia — which has 10 stores, including Innaloo in suburban Perth — said it was committed to managing its global operations in a responsible way and “paying taxes in accordance with laws and regulations, wherever we are present”.
Its income tax payments have come under scrutiny in recent years but Ikea Australia boss Mirja Viinanen told The West in 2024: “We are always paying the taxes as required.”
The Australian business delivered a net profit $91.16m for the year to August, up from $51.3m in 2024.
Revenue hit $1.765 billion, up from last year’s $1.725b.
“The ATO is unable to comment due to our obligations under taxpayer confidentiality laws,” a spokeswoman for the tax office said on Monday.
