Italy’s Fiat need not pay $30 million in back taxes, EU court adviser says By Reuters


© Reuters. FILE PHOTO: A Fiat Chrysler Automobiles (FCA) signal is on the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook/File Photo


By Foo Yun Chee

LUXEMBOURG (Reuters) -Italian carmaker Fiat Chrysler need not pay 30 million euros ($33.95 million) in back taxes to Luxembourg, an adviser to Europe’s high court mentioned on Thursday.


The Fiat case was a part of European Competition Commissioner Margrethe Vestager’s crackdown on sweetheart offers between European Union nations and multinationals, probably the most excessive profile of which had been Apple (NASDAQ:)’s Irish deal and Amazon (NASDAQ:)’s Luxembourg deal.

Fiat Chrysler, which merged with Peugeot (OTC:) maker PSA earlier this yr and rebranded itself Stellantis, had challenged the EU tax order on the General Court however misplaced. It then appealed to the Court of Justice of the European Union (CJEU).

Ireland, which final yr gained its battle towards an EU tax order requiring it to recoup a document 13 billion euros in back taxes from Apple, additionally appealed towards the Fiat order.

Pronouncing on each appeals on Thursday, Priit Pikamae, advocate common on the EU Court of Justice, mentioned Ireland’s enchantment towards the EU tax order needs to be upheld and the Commission determination annulled.


The end result can be Fiat need not pay the additional tax invoice, despite the fact that the adviser mentioned Fiat’s enchantment needs to be dismissed due to what he discovered unconvincing arguments.

In its 2015 determination, the Commission mentioned Fiat Chrysler set costs for items and companies offered between subsidiaries, often called switch costs, that had been beneath market charges and which artificially lowered their taxes.

The CJEU, which normally follows 4 out of 5 such non-binding opinions, will rule in the approaching months.

The instances are C-885/19 P Fiat Chrysler Finance Europe v Commission and C-898/19 P Ireland v Commission.


(1 = 0.8837 euros)

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