Posted on 01/26/2011 4:00:34 PM PST by WesternCulture
Ikea founder Ingvar Kamprad, considered one of the wealthiest people in the world, controls the company through a secret foundation worth 100 billion kronor ($15.34 billion), according to a Sveriges Television (SVT) report.
Despite the revelation, the company and Kamprad's image will probably not be affected, according to media advisors.
Kamprad controls the enterprise through a holding company called Inter Ikea by way of a secret foundation in Liechtenstein. The foundation is currently worth about 100 billion kronor, according to the latest episode of SVT's Uppdrag granskning investigative news programme, set to air on Wednesday evening.
Ikea is controlled through a complex network of different types of companies and foundations.
According to Uppdrag granskning, Kamprad, who has lived in Switzerland for over 30 years, created the foundation Interogo in Liechtenstein in the spring of 1989. The foundation is managed by the law firm Marxer & Partner.
In an email from Ikea sent to the TT news agency, Kamprad admits that the Interogo Foundation in Liechtenstein exists and that it owns Inter Ikea Holding SA, which in turn owns Inter Ikea.
"Interogo Foundation is a company foundation whose only goal is to invest in the expansion of the company business and secure its long-term survival. In other words, the assets of the Interogo Foundation are held as financial security and are only used if Inter Ikea has financial difficulties," wrote Kamprad.
"The assets can also be used to support individual Ikea dealers who have financial difficulties or for philanthropic purposes. Interogo Foundation is controlled by my family and is administered by a board of directors consisting only of outside representatives." he added.
Liechtenstein's rules and regulations are extremely closed. And the bylaws of the foundation clearly state that documents about the foundation cannot be shown to outsiders or foreign authorities.
Proceeds can be paid out through grants to individuals or organisations that work in architecture, as well as interior design and consumer products. Interogo currently has 100 billion kronor in equity, acting as a hidden fortune for Kamprad.
The regulations also clearly stipulate that the Kamprad family has total control over the executive board of Inter Ikea, which is registered in the Netherlands.
For many years, Kamprad has said that his influence over the company is limited and that a Dutch charitable foundation, Stichting INGKA Foundation, directed it.
However, it is Inter Ikea, which the Kamprad family controls through Interogo, that owns the rights to the Ikea brand, its concepts and all of the products sold in its stores around the world.
A large part of Inter Ikea's proceeds comes from the 3 percent in royalties on all sales that every Ikea store must pay to the parent company for the right to use the concept. These payments are tax-free and are amount to several billion kronor per year.
Ikea currently operates in 38 countries. In Sweden, the arrangement amounts to 100 million kronor a year in lost taxes, according to the report.
Through advanced tax planning, the company has implemented the system of royalty payments to dodge tax payments, according to Uppdrag granskning's report, which uncovered the jumble of companies within Inter Ikea registered in the Netherlands, Belgium, Luxembourg, Switzerland, Curaçao, the Virgin Islands and Cyprus.
Despite the revelations, media advisor Paul Ronge doesn't think the information will negatively affect the image of Ikea and Kamprad.
"There are extremely few brands that are considered icons in Sweden, but Ingvar Kamprad is one of them. If someone decides to go after Kamprad, it must be with something that will cause people's jaws to drop," he said.
During his media training sessions, Ronge often compares Kamprad with beloved Swedish children's author Astrid Lindgren and actor and director Hasse Alfredson.
"Ingvar Kamprad has been perhaps the most skillful brand builder in Sweden as he has built up his brand over a long, long time. That makes for a very strong immune system during crises," he said.
"The key issue is whether people think this is so remarkable, shocking and new that they are prepared to reconsider the image of Kamprad that the majority of the Swedish people have held over the last 40 to 50 years," Ronge pointed out.
When a reporter from the programme tried to confront Kamprad with the information, he became angry and asked, "How can you ask such idiotic questions? Are you crazy?"
"It is deplorable that Ingvar Kamprad had an outburst like that. It is so unnecessary. He did not have to end up in such a situation. One should not react emotionally and in the presence of journalists to show yourself getting so pissed off," said Ronge.
Ikea Sweden plans to comment the revelations presented by Uppdrag granskning on Wednesday and early on Thursday morning, Ikea Sweden will host a chat on its website, where CEO Peter Agnefjäll will answer questions.
These billions belong to the Swedish government bureaucrats and no one else. Just imagine what Socialist marvels could be achieved for the benefit of mankind.
Seriously, why did IKEA flee Sweden in the first place? Why did Volvo build their second largest plant in Belgium instead of doing so on home soil in the 1970s?
For some reason, tranquilizing dreams and schemes of big government solutions tend to end up in a rude awakening.
This has been the case in Sweden, in Britain and in Russia - and in many other nations.
Being Swedish, I have no say regarding what presidents you should elect.
But if you ask me, you Americans are too clever to reelect Obama.
TRUST ME....We are filled with STUPID people!! That’s how that liar got in the first place!!
Certainly hope so.
the highest form of socialism....
Swedish taxes on Ethiopian wages.
Who knew that was so much money to be made selling crappy dormitory furniture.
Most people give no thought at all to who might own a business.
Unfortunately, the stuff they sell might as well be made in China. It’s low end.
Ikea furniture is great, we have a ton of it in the house.
Would buy from again. A+++
clever isn’t the issue
The President depends on a coalition of groups to get re-elected, all of them with a lean of some sort on our money.
The big bucks are always in the high volume, low quality items.
“But if you ask me, you Americans are too clever to reelect Obama. “
I like your optimism but far too many people have an attention span of a gnat.
I concur. Its cheap and does its job. If I have to bail
out of a flat in a hurry I don’t feel too bad leaving it or
giving it away.
Unless you’re one of the Reno brothers, who cares about
furniture? Its a commodity!
make that the Keno brothers...
“Ikea furniture is great, we have a ton of it in the house.”
I agree, it is fantastic.
I first discovered it in Slovakia and bought it for my
apartment with the intention of just abandoning it, but
I still have some of it here in my Philippine beach house.
I am at my Ikea computer desk that has roll out keyboard
shelf, and numerous storage shelves, and I am sitting at my Ikea rolling desk armchair.
I also have a 6 foot, 6 shelf bookcase.
All of this is possible because of their packaging design.
Everything breaks down into very flat boxes, making it very easy to ship.
All of my dishes and some lamps, and my bebside table here
were all in my shipment from Slovakia.
The best part is the very low price.
What comes to mind is that this labyrinth of tax dodges serves to needlessly enrich a class of financiers and accounting goblins out of a Harry Potter novel.
This is exactly the problem with partial socialism of the European model. It sucks money away from the productive and industrious in Sweden, money that could be used to hire more Swedes, toward a shadowy mandala of tax havens thousands of miles away; it requires otherwise honest people to be sneaky and devious.
Kinda sounds like our own Gibbsy here!
People that have worked to build a business over decades, don’t like having the government any Government telling them what to do with their money.
The guy has been a major tax dodger for decades. He must know the right people in Sweden to have gotten away with the scam for so long
But if you ask me, you Americans are too clever to reelect Obama.
I am not so sure. Look at Arizona...a state that is fighting Illegal Alien Amnesty and Mexican Drug Cartels....yet sent back John McCain to the Senate....who is basically on the payroll of Illegal Alien groups and the Mexican Drug Cartels.
Sophisticated way Mr IKEA has in getting around Swedish taxes
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.