The world’s biggest clothing retailer has been accused of using “aggressive” techniques to sidestep at least 585 million euros ($624 million) in taxes from 2011 to 2014. According to the Greens/EFA group in the European Parliament, Inditex, which owns the Zara and Massimo Dutti brands, among others, stated in a report released the week that without an overhaul of European Union policy, “multinationals and their tax consultants, together with states which choose to engage in destructive tax competition, will continue to get around efforts to clamp down on profit-shifting and tax avoidance."
As reported by Bloomberg, "Inditex has been using aggressive corporate tax avoidance techniques between 2011-2014, mainly in the Netherlands, Ireland and Switzerland, the Greens said. The techniques used are 'currently legal,' but raise 'questions whether Inditex pays taxes where its real economic activity takes place,' the report said."
The Spanish clothing giant rejected the content of the report, saying it was “based on mistaken premises that lead to erroneous conclusions.” Inditex said it scrupulously complies with tax rules in all the markets where it operates.