S&C Represents Fiat Chrysler Automobiles NV in EU Commission State Aid Challenge

June 21, 2018
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On June 21, S&C client Fiat Chrysler Automobiles NV and Luxembourg challenged the EU Commission's order for €30 million in back taxes from Fiat Chrysler Automobiles in a hearing at the EU General Court in Luxembourg. “Fiat feels like it's been penalized by the Commission. Let there be no doubt, the Commission is trying to make new law in this case,” Juan Rodriguez, who is representing Fiat, was quoted as saying to the court in Reuters. “The Commission acted as a supranational tax authority even as a supernatural tax authority.” Bloomberg quoted Juan as telling the court that Fiat felt that “their reputation has been unjustly tarnished by the contested decision,” and that Fiat's 1997 decision to set up a Luxembourg unit “had no correlation whatsoever with corporate income tax treatment, either then, or subsequently.” The outcome of the case, which is the first in a series of appeals against EU Commission State Aid decisions relating to tax rulings, could help forecast the outcome of other challenges to much larger tax bills handed out by the EU Commission since 2015. The S&C team advising Fiat comprises Juan Rodriguez, Nicolas de Boynes, Andrew Thomson, Michael Engel and Oscar Hayward.