Connect with us
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


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

Italy's Fiat need not pay $30 million in back taxes, EU court adviser says 1

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 top court said on Thursday.

The Fiat case was part of European Competition Commissioner Margrethe Vestager’s crackdown on sweetheart deals between European Union countries and multinationals, the most high profile of which were Apple’s Irish deal and Amazon’s Luxembourg deal.

Fiat Chrysler, which merged with Peugeot maker PSA earlier this year and rebranded itself Stellantis, had challenged the EU tax order at the General Court but lost. It then appealed to the Court of Justice of the European Union (CJEU).

Ireland, which last year won its fight against an EU tax order requiring it to recoup a record 13 billion euros in back taxes from Apple, also appealed against the Fiat order.

Pronouncing on both appeals on Thursday, Priit Pikamae, advocate general at the EU Court of Justice, said Ireland’s appeal against the EU tax order should be upheld and the Commission decision annulled.

The result would be Fiat need not pay the extra tax bill, even though the adviser said Fiat’s appeal should be dismissed because of what he found unconvincing arguments.

In its 2015 decision, the Commission said Fiat Chrysler set prices for goods and services sold between subsidiaries, known as transfer prices, that were below market rates and which artificially lowered their taxes.

The CJEU, which usually follows four out of five such non-binding opinions, will rule in the coming months.

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

(1 = 0.8837 euros)

(Reporting by Foo Yun Chee; editing by Barbara Lewis)

Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate


Newsletters with Secrets & Analysis. Subscribe Now