Fiat Chrysler Says Ferrari Will Continue To Be Italian Tax Resident
(RTTNews.com) – Fiat Chrysler Automobiles N.V. (FCAU) on Thursday confirmed that the proposed separation of Ferrari from itself, does not and will not entail a change in the tax residence of Ferrari.
The announcement by Fiat is in response to comments and opinions that are now circulating regarding the shift of the fiscal residence of Ferrari S.p.A. away from Italy.
Fiat said Ferrari will continue to be organized under Italian law and tax resident in Italy, Fiat said. Ferrari will pay Italian taxes on its income as all Italian tax resident corporations.
According to Fiat, the IPO and the subsequent distribution of shares to Fiat shareholders will involve the parent company of Ferrari, which will be a Dutch incorporated entity. The proposed structure is no different than the structure that is in place now, with Fiat, a Dutch incorporated entity, being the parent company of Ferrari.
The use of a Dutch parent company for these purposes is required in order to provide an efficient and viable mechanism to distribute ownership of Ferrari to FCA’s shareholders.
The transaction will not affect Ferrari as a separately organized Italian company; it will not shift personnel from Ferrari, nor will it reduce employment levels or activities current being carried out by Ferrari in Italy. And it will not entail any reduction in the taxable base of Ferrari in Italy.
