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FCA facing up to $227 million in tax repayments?

by Bill Cawthon on

Fiat Chrysler Automobiles (FCA) could be hit with $227 million in tax repayments, according to the Financial Times, as the EU takes actions against EU countries which used low tax rates to attract multinational companies. The ultra-low taxes may be declared illegal state aid by Competition Commissioner Margarete Vestager.


FCA would be repaying the Netherlands Bestatingdienst tax agency.

Starbucks, one of the other companies mentioned, is likely to be hit for around €30 million (about $34 million), while FCA’s hit will be “no more than” €200 million ($227 million) — but the Times says this is just the opening shot. The big game includes Apple and Amazon, which got deals from Ireland and Luxembourg, respectively.

The EU says the sweetheart tax deals have eroded tax bases in other European countries.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

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