Italy’s corporate tax rate is 31,4 percent. UK’s is currently 21 percent and, next year, will decline to 20. Sergio Marchionne did the math and simply moved Fiat’s fiscal residence to London. Make that “Fiat Chrysler Automobiles” (FCA), as this is the name of the new entity.
For Fiat to leave is one thing – the mere suggestion that Ferrari is considering following suit will spark an outrage in Italy. Next thing we know, the Pope won’t be a Catholic. Surely Marchionne wouldn’t do such a thing now, would he?
A Bloomberg report, suggested that he is at least thinking about moving Ferrari’s fiscal base outside Italy and follow the steps of its parent company, which is based in London, registered in the Netherlands and listed on the New York Stock Exchange.
Of course the cars would still be manufactured in Maranello. Even so, as symbolism goes, it would be a huge blow for Italians who consider Ferrari a national treasure.
“A move away from Italy by an icon like Ferrari shows that this country is unfit for companies and its fiscal system is clearly not competitive”, said professor of public finance at Milan Bicocca University Ugo Arrigo.
However, right after we finished writing this piece, FCA released a statement flatly denying the rumor:
“The press has reported certain rumors suggesting that Ferrari S.p.A. would be considering moving its fiscal residence outside Italy. These rumors have no grounds. There is no intention to move the tax residence of Ferrari S.p.A. outside Italy, nor there is any project to delocalize its Italian operations, which will continue to be subject to Italian tax jurisdiction.”
Photo Gallery
