FCA Denies Plans to Move Ferrari’s Tax Base Outside Italy
Fiat Chrysler Automobiles publicly denied a media report saying it was thinking about moving the tax residence of its Ferrari luxury sports car division outside Italy.
“These rumors have no grounds,” FCA said in a company statement.
“There is no intention to move the tax residence of Ferrari SpA outside Italy, nor is there any project to delocalize its Italian operations, which will continue to be subject to Italian tax jurisdiction.”
Back in October, FCA chief Sergio Marchionne said that he would spin off Ferrari from the company in 2015 and a sell 10 percent stake through a public offering and distribute the rest of FCA’s stake to its shareholders, according to Reuters.
There is a good chance the automaker will be listed in the U.S. and the European exchange, the FCA said in a company statement.
The newly created FCA and sister company CHN Industrial have moved their headquarters and tax domicile to Britain recently. Their legal base is now located in the Netherlands as well.
The moves means a shift away from Italy, which has been Fiat’s home base for the past 115 years. Both companies have a listing in New York and in Milan, according to Reuters.
A move away from Italy would probably be an unpopular one with the government of Prime Minister Matteo Renzi, which is currently trying to push for reforms to create jobs and revive an economy in the middle of a recession.
Rome has been careful not to antagonize Italy’s biggest manufacturing employer so far, stressing to pledges to continue investing billions of euros for production of Fiat vehicles.
FCA shares closed down 3.2 percent at $11.1 in New York and down 6.3 percent in Milan, according to Reuters. Shares dropped mainly due to the response of pricing of the company’s bond and share offerings released on Christmas Day.
