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FIAT

Fiat denies Ferrari’s tax base will leave Italy

Fiat Chrysler Automobiles (FCA) has denied reports that the fiscal base of luxury carmaker Ferrari could be moved outside Italy.

Published: 12 December 2014 13:13 CET
Fiat denies Ferrari's tax base will leave Italy
Fiat Chrysler Automobiles has denied reports that Ferrari's fiscal residence could be moved outside Italy. Photo: Naotake Murayama

The company said in a statement that the “rumours”, reported by Bloomberg on Wednesday, “have no grounds”.

"There is no intention to move the tax residence of Ferrari S.p.A. outside Italy, nor is there any project to delocalise its Italian operations, which will continue to be subject to Italian tax jurisdiction,” the company added.

Citing people close to the situation, Bloomberg reported that Ferrari was considering shifting its fiscal base in an effort to escape high Italian corporate taxes.

The company is in the process of being spun-off from the newly-merged FCA, which transferred its headquarters to London earlier this year and is registered in The Netherlands for tax purposes.

The spin-off is expected to be completed early next year.

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ECONOMY

Fiat promises no job cuts in return for state aid: report

Fiat Chrysler has agreed to the conditions laid down for a state-backed €6.3 billion euro loan, including a promise not to relocate or cut jobs, Italy's Sole 24 Ore daily said Sunday.

Published: 21 June 2020 13:51 CEST
Fiat promises no job cuts in return for state aid: report
Robots manufactured by Comau are pictured on the assembly line of the Fiat 500 BEV Battery Electric Vehicle. Photo: AFP

The state auditor has approved the guarantee, but it still needs to be signed off on by the economy ministry, the paper said.

The request for state support on such a large loan has proved controversial, particularly with the company's corporate headquarters in Amsterdam.

FCA — which directly employs close to 55,000 people in Italy — has said the loan is essential to help the group's Italy operations and the whole industry to weather the crisis triggered by the coronavirus pandemic.

The company will commit to investing 5.2 billion euro in Italy on new and existing projects, and up to 1.2 billion euro on its 1,400 or so foreign suppliers, said Sole 24 Ore, Italy's financial newspaper.

 

FCA will also pledge not to cut any jobs before 2023.

The loan will be funded by Italy's largest commercial bank Intesa San Paolo and 80 percent guaranteed by export credit agency SACE, the daily said.

The government has said FCA would face sanctions if it failed to stick to the conditions laid down for loan. Sole 24 Ore said the fine for breaking the agreement could be in the region of 500 million euros.

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