- Bloomberg reported Thursday that Italian tax authorities have claimed Fiat Chrysler Automobiles underestimated the value of its American business by 5.1 billion euros ($5.6 billion) following its phased acquisition of Chrysler several years ago, presenting the carmaker with a potentially hefty bill as it prepares to merge with French rival PSA Group.
- Fiat Chrysler is now registered in the Netherlands with a tax residence in the U.K. – not Turin, Fiat’s home for more than a century.
- The move triggered the so-called exit tax that Italy collects on capital gains realized when companies move assets outside the country.