Ikea has responded to an Australian Tax Office (ATO) audit, which claims the company owes an estimated $171 million in unpaid taxes.

The ATO audit covers the financial years 2016 to 2020. Ikea claims it has worked “collaboratively with the ATO”.

“We strongly disagree with the ATO’s current audit position and intend to dispute any tax-related liability that may arise. We do not consider it probable that tax is payable to any of the matters subject to audit, and as such, no provision has been set aside to do so,” Ikea said in a statement.

The Ingka Group, Ikea’s holding company, reported that Ikea paid $12.4 million in corporate income tax in the 2025 financial year, from revenues of $1.04 billion. It maintains an income tax expense of $27.3 million.

An Ikea spokesperson added: “Globally, we are committed to managing our operations in a responsible way and to make a positive contribution to society in each country where we operate, paying taxes in accordance with laws and regulations, wherever we are present.”

Ikea currently operates 12 stores in Australia and a further eight collection points.