LUXEMBOURG (Reuters) – Europe’s top court on Tuesday scrapped an EU order to Italian carmaker Fiat Chrysler to pay 30 million euros ($30 million) in back taxes to Luxembourg.
“The Court of Justice that the General Court was wrong to confirm the reference framework used by the (European) Commission to apply the arm’s length principle to integrated companies in Luxembourg, in failing to take into account the specific rules implementing that principle in that member state,” the Court of Justice of the European Union (CJEU) said.
In its 2015 decision, the European Commission said Luxembourg had granted Fiat Chrysler an unfair tax advantage by endorsing artificial and complex methods which artificially lowered the company’s taxes.
The cases are C-885/19 P and C-898/19 P.
($1 = 1.0005 euros)
(Reporting by Foo Yun Chee, additional reporting by Bart Meijer in Amsterdam)