A very sophisticated lesson was given currently to all tax planners who insist of planning legitimate and legal structures, by 84 year old IKEA's founder, Mr. Ingvar Kamprad. Although he was often described as one of the richest men in the world – nobody could prove that Mr.Kamprad really still holds control of the furniture company he established 68 years ago.

A team of Swedish reporters found out that Mr. Kamprad has used several tax havens for his secret structure. He used a foundation in Liechtenstein (Interogo foundation) which holds an offshore company in Luxembourg.

The offshore Luxembourg Company is the owner of the trademark and the intellectual property of the structure and receives royalties from each and every store around the world. This income is not subject to tax in Luxembourg when received by offshore Luxembourg Company. For the retailing part of business Mr. Kamprad used a Netherland foundation which also has several tax benefits and assist in minimizing the tax liabilities of the structure. As for himself – in order to avoid the high tax rates in Sweden- Mr. Kamprad left Sweden many years ago to Switzerland, which also offers very attractive tax shelters to individuals as well as for companies.

After his tax efficient structure was exposed, Mr Kamprad said that while IKEA paid taxes in all the countries where due and met all laws and regulations, there was nothing wrong with trying to be as tax efficient as possible.

He also said that taxes were a cost like any other, and all costs needed to be kept to minimum.