Spain seems divided recently because of the different opinions regarding the donations of oncological equipment valued at euros 320 million by the Amancio Ortega Foundation. Some people glorify the leading figure of the founder of Zara to the altars of holiness, or simply believe that being grateful is being a good guy. But there are also those who criticize the derisory nature of the donation (compared to his fortune), the tax avoidance of Ortega’s business industry or the scandals of child slavery and labor exploitation found in the INDITEX production chain.
The Greens/EFA in the European Parliament reveal that Inditex has saved at least €585 million in taxes during the period 2011-2014, by using aggressive corporate tax avoidance techniques, mainly in the Netherlands, Ireland and Switzerland. You may not know Inditex, but you surely know Zara, Massimo Dutti or Pull&Bear, some of the brands owned by Inditex. Our research looked in detail at their financial accounts and shows how some of their profits are moved to the Netherlands through royalties. Royalty payments are made by many companies for the right to use a brand name. Continue reading “Tax Shopping. Exploring Zara’s tax avoidance business.”