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FCA challenges Italy tax agency over value of U.S. business

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Fiat Chrysler Automobiles (FCA) has challenged Italy's tax authority which ...

) has challenged Italy’s tax authority which has said the car company had underestimated the value of its U.S. business after it bought Chrysler.

On Wednesday, a source close to the matter said the Italian tax agency believed FCA had underestimated its business in the United States after its phased acquisition of Chrysler by 5.1 billion euros.The tax audit comes at a delicate time for the carmaker which is finalizing talks with PSA , the maker of Peugeot and Citroen, over a planned $50 billion merger to create the world’s fourth-largest automaker.

“We are confident we will successfully make the case for a material reduction in the assessment,” the FCA spokesperson said.

 

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