Sunday 19 November 2017

Fiat moving tax base to UK

Francesca Landini

Fiat wants to establish the tax domicile of the new Fiat Chrysler Automobiles group in the UK to help woo American investors, the Italian car maker's chairman said.

The Turin-based car maker – which this month bought out the minority investor in its US Chrysler unit in a $4.35bn (€3.2bn) deal – said the holding group would be registered in the Netherlands and have its tax domicile in Britain, cementing a politically sensitive shift away from Italy.

"The advantage to London is linked to the more favourable rules for American investors, which we hope to attract with the merger," John Elkann said.

Mr Elkann said that Fiat would not pay less tax as a consequences of these changes. But some experts say registering the group in the Netherlands with a UK tax domicile could ultimately deprive the US and Italy of tax revenue on some of the company's overseas earnings.

Irish Independent

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