Top EU court backs Fiat appeal against 30 million euro EU tax payment order By Reuters


© Reuters. FILE PHOTO: New Fiat Panda and Fiat 500 mild-hybrid cars are seen in piazza Maggiore, in Bologna, Italy, February 4, 2020. REUTERS/Flavio Lo Scalzo

LUXEMBOURG (Reuters) – Europe’s top court on Tuesday scrapped an EU order to Italian carmaker Fiat Chrysler to pay 30 million euros ($30 million) in back taxes to Luxembourg.

“The Court of Justice that the General Court was wrong to confirm the reference framework used by the (European) Commission to apply the arm’s length principle to integrated companies in Luxembourg, in failing to take into account the specific rules implementing that principle in that member state,” the Court of Justice of the European Union (CJEU) said.

In its 2015 decision, the European Commission said Luxembourg had granted Fiat Chrysler an unfair tax advantage by endorsing artificial and complex methods which artificially lowered the company’s taxes.

The cases are C-885/19 P and C-898/19 P.

($1 = 1.0005 euros)

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