In a controversial report, Green MEPs has accused Zara and its parent company Inditex of employing fiscal optimisation measures to avoid paying over €500 million in tax. The report was disputed by the Spanish apparel group. In its 36-page report, Green MEPs gave details of what they claim are the group's ‘aggressive tax avoidance strategies’. Zara is allegedly benefiting from low levels of corporate taxation in countries like the Netherlands, Ireland and Switzerland. On the contrary Inditex said that the report is based on mistaken premises which lead to false conclusions. The response of Zara came in a press release.
Inditex is the third group Green MEPs that has set its sights on malpractises. Last February, it pointed its finger at Swedish furniture giant Ikea and in early November at German chemicals group BASF for their fiscal trickery. Both groups have disputed the accusations.