It says the parliamentary research on which the claims are made contains "serious mistakes" and that it "complies rigorously" with tax rules.
Inditex, which is alleged to have saved nearly €600m tax by using "aggressive" avoidance techniques, told this website that it "complies with prevailing tax legislation" in all the 93 markets in which it operates.
The allegations against Inditex, which owns fashion giant Zara, were raised by the Greens group in Parliament which, on Thursday, published what it says is new evidence of alleged tax evasion by the company.
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According to the Greens, Inditex saved nearly €600m in taxes between 2011 and 2014 by using "aggressive corporate tax avoidance techniques."
This, it is claimed, took place in Ireland, the Netherlands and Switzerland, three of the countries where Inditex has a base.
In Ireland, the group uses Irish subsidiaries which are only taxed at 12.5 per cent. In the Netherlands, where it also has a subsidiary, the corporate tax rate is just 15 per cent.
The findings will be given to members of a special parliamentary committee set up to consider possible reform of tax systems in wake of the Panama Papers scandal.
However, in a statement issued to this website, the company strongly defended its track record, saying the Inditex group's effective tax rate was between 22 per cent and 24 per cent from 2011 to 2015, "depending on the results of the group's various companies and the corporate tax rates in each country."
It says that, by way of example, the statutory corporate tax rate in Spain stands at 25 per cent compared to 20 per cent in the UK, 28 per cent in Germany, 16 per cent in Romania, 20 per cent in Russia, 12.5 per cent in Ireland, 19 per cent in Poland, 25 per cent in China, 33.33 per cent in France, 29 per cent in Greece, 27 per cent in Italy, 25 per cent in Austria and 20 per cent in Turkey.
It says the Greens report refers to the period between 2011 and 2015 "over which time Inditex contributed more than €4.4bn of corporate income tax worldwide."
Their spokesperson said that during that same period, it contributed €2.2bn of revenue to the Spanish state, which represents over two per cent of the country's total corporate tax revenue collection.
The spokesperson added, "Inditex adopts a highly responsible tax policy in all the markets in which it operates. All group companies are fully transparent and details on each can be found in the annual report.
"Transactions between group companies are audited regularly by the tax authorities in each country."
Inditex is active in every step of the garment industry value chain and each step "is carried out in multiple countries and each of these countries has its own tax law.
"We work with over 400 companies and all transactions are carried out on an arm's length basis, in keeping with prevailing tax legislation in each country and the OECD's guidelines on transfer pricing.
"The Greens report claims that Inditex has saved €585m using 'an aggressive tax avoidance policy in Netherlands, Ireland and Switzerland', but we believe that the report is based on erroneous premises that lead it to mistaken conclusions."
The report makes a "grave error" by claiming, for example, that the Spanish state has foregone €218m of tax revenue in the form of industrial property rights, said Inditex.
"Indeed, Spanish companies do not pay for their industrial property rights, rather they generate operating profits therefrom," said the spokesperson.
On another of its subsidiaries, ITX Fashion, the spokesperson said, "At present, this company oversees the eCommerce business in three countries: Japan, the US and Canada.
"As previously stated, each country's online business ultimately gets folded into each market's business structure, in line with the group's strategy of integrating its offline and online businesses."
Another part of the Inditex group is ITX Trading and, on this, the spokesperson said, "The group purchases merchandise from suppliers, manufacturers and traders. To do so it has specialist buyers.
"These professionals carry out their remit in different jurisdictions and belong to different companies, giving rise to intragroup transactions that are conducted in line with local legislation and OECD guidelines."
Meanwhile, British Labour MEPs warn that plans by McDonalds to switch its non-US tax base to the UK in a move that could become an early warning sign of the UK becoming an offshore tax haven from the EU post-Brexit.
The European Commission is currently investigating the tax practices of McDonalds in Luxembourg after it was alleged they avoided more than €1 billion in tax between 2009 and 2013, while the UK government has recently pledged to have the lowest corporate tax rate in the G20, meaning the rate could drop as low as 15 per cent if President-elect Donald Trump fulfils his own pledge to lower the US tax rate to 15 per cent.
Anneliese Dodds MEP, Labour’s European Parliament spokesperson on taxation, said, “If McDonalds are relocating their tax base to the UK in order to comply fully with the UK’s 20 per cent corporation tax rate, then we fully welcome their positive move. However, if this is speculation on the UK becoming a tax haven after Brexit, then we must ensure the government publishes any sweetheart tax deal agreed now or in the future.