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EU's Highest Court Sides With Chrysler In Mega Tax Case

EU's Highest Court Sides With Chrysler In Mega Tax Case

In a mega tax case involving 30 million Euros, the European Union's highest court has sided with Chrysler Fiat, overturning a prior decision.

As confirmed by ABC News, the Court of Justice today ruled that the automaker does not have to pay the nation of Luxembourg up to 30 million Euros in back taxes. The court's decision was based on the fact that the European Commission -- the EU's executive branch -- "failed to take into account the typical tax laws in Luxembourg when it was determining whether the automaker got a tax advantage."

The Commission originally reached its decision three years ago, and was today informed that their ruling was "an error of law."

EU Competition Commissioner Margethe Vestager was not pleased with the outcome, issuing a statement that reads, in part:

“The Commission is committed to continue using all the tools at its disposal to ensure that fair competition is not distorted in the Single Market through the grant by Member States of illegal tax breaks to multinational companies."

ABC noted that this landmark decision comes as 130 nations around the world are working to sign a global minimum tax deal into law -- all of these countries signed an agreement last year in a bid to create more equal global footing for multinational companies.

This is not the first time that Fiat Chrysler has gone toe-to-toe with European Union law. In 2020, ahead of its $38 million USD merger with French brand PSA, the auto giant had to contend with an antitrust investigation

What do you think about the EU's high court overturning the prior ruling in the Chrysler case?

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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