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by syedkarim 2227 days ago
That someone would need to understand tax law in the Netherlands and Lichtenstein. It's possible that in those jurisdictions, this type of corporate arrangement is very much within the spirit of the law. Hopefully a European expert chimes in.

A comment above states that IKEA is very much a for-profit operation. I don't quite understand that. Whether an organization is for-profit or non-profit, they are all businesses in the sense that the cash-in must match cash-out. Most American hospitals are non-profits, but look at the way they conduct operations. Some for-profits receive grants from foundations for doing work that would be considered charitable.

The only real difference between non-profits and for-profit corporations is that the former do not have shareholders. Both types of organizations can still issue monstrous bonuses to employees and offer performance-based compensation (commission for donations generated, etc). But it's only with a for-profit company that the owner(s) can sell the company, or pieces of it.

1 comments

Well, non-profits are also exempt from taxation.