Ikea could be looking at an historic tax bill worth millions of euros following an investigation by the European Commission.

The European Commission is set to finish its investigation into the home furnishings retailer which could see Inter Ikea – the brand owner of the store – forced to pay millions of euros in back tax.

The two-year investigation that focused on the company’s franchise business in the Netherlands came about after a report by the European Parliament had discovered Ikea avoided paying €1bn over a six-year period, according to City AM.

The European Commission said the Dutch authorities granted Ikea two tax rulings which gave the company an unfair advantage and reduced its taxable profit in the Netherlands.

The first ruling from 2006 meant a huge part of Ikea’s profits form its franchise business were moved to a Luxembourg unit and not taxed.

The second ruling in 2011 saw a large amount of franchise profits transferred to a Liechtenstein parent company.

Ikea told Reuters: “Just like all other companies working under the Ikea trademark, Inter Ikea Systems BV is committed to paying taxes in accordance with laws and regulations wherever we operate.

“We believe that we also in these cases have paid the correct amount of tax.”