The EU has set it’s sites upon Starbucks and Fiat Chrysler claiming that the companies have acted outside of the EU state aid rules. In other words they have acted illegally. Apparently Fiat had struck a tax deal with Luxembourg which allowed them to pay taxes on underestimated profits.
The Luxembourg Ministry of Finance said the Commission had “used unprecedented criteria in establishing the alleged state aid”.
“Luxembourg disagrees with the conclusions reached by the European Commission in the Fiat Finance and Trade case and reserves all its rights,” it said. Fiat have also denied and illegal state aid from Luxembourg.
The EU is saying that Fiat Chrysler have to pay between €20m (£15m) and €30m in taxes to give a more economically realistic reflection.
I’ve been suspicious of Fiat ever since I bought a second hand Fiat Sedici, what a load of rubbish that was.