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If I understand US law correctly, a non-profit corporation is allowed to own a for-profit corporation (just like it can own any other asset), but that doesn’t e
by sethg 17y ago
If I understand US law correctly, a non-profit corporation is allowed to own a for-profit corporation (just like it can own any other asset), but that doesn’t exempt the for-profit corporation from taxes; it just means that all the after-tax profits go into the non-profit’s coffers. And when a non-profit corporation pays its employees or directors, that money becomes taxable income. Does Dutch law work the same way? How much are the Ikea companies actually saving from the taxman this way?
- pmjordan 17y agoI think the implication is that the main for-profit companies make virtually no profit at all. The "profit" is emitted via the franchise commission which is handled as an expense. What exactly happens in the INGKA foundation isn't clear to me. Presumably the non-profit actually pays the designers who create the products, handing the designs back over to IKEA.