Final Word from Thursday, April 10, 2014

A team of Swedish investigative journalists caused a stir in 2010 when they discovered a previously unknown Liechtenstein foundation, Interogo, that Ingvar Kamprad was using to stash away billions of dollars from IKEA. Each store was paying a 3% royalty on its sales. It's not clear from IKEA ČR's financial statements where it was hiding this amount, but if it paid 3% off the top of its 2012-2013 revenue, the royalty of Kč 221m would be 4.4 times larger than its Czech corporate tax bill. Labor leader Josef Středula told a Czech TOP 100 conference yesterday that royalty payments are one of the biggest scourges of Czech business. Daniel Szórád, a manager at IKEA Poland, will now be nominated to run Lesy ČR forestry company, which has its own history of non-transparent financial flows. Sometimes it's unclear whether hiring an experienced manager from a multinational company should be seen as a blessing or a curse. [Czech Republic Sweden licensing fees]

Glossary of difficult words

a stir - a commotion or disturbance;

to stash (away) - to store something safe and secretly in a specified place;

tax bill - the amount a person or entity owes in tax;

scourge - a person or thing that causes great trouble or suffering;

blessing - a beneficial thing for which one is grateful; something that brings well-being;

curse - a cause of harm or injury.

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