Ferrari mulls shifting fiscal headquarters out of Italy

Article by Christian Andrei, on December 12, 2014

Ferrari is mulling transferring its fiscal headquarters outside Italy to reduce its corporate taxes as it gets ready for eventual spinoff from Fiat Chrysler Automobiles, people privy with the matter told Bloomberg. Ferrari may follow the example set by Fiat Chrysler – registering in the Netherlands, listing on the New York Stock Exchange and having its fiscal base in London for tax reasons.

The sources remarked that Ferrari is still considering being based in Italy. They remarked that even if the super car maker transfers its fiscal residency to other countries, it wouldn't affect its manufacturing and engineering operations in Maranello, Italy.

A final decision on the matter will be made in the next few months. Should Ferrari follow the footsteps of its parent, it would be a big blow for Italy, which economy has been on the low side for years. Spinning off Ferrari is part of a plan by Fiat Chrysler chief executive Sergio Marchionne to generate $5 billion to be used for reducing its debt and financing the carmaker’s industrial plan.

Fiat Chrysler is also selling at least 87 million shares and a $2.5 billion mandatory convertible bond to raise more funds. According to Fiat, the financing move will bolster its cash coffers by $3.7 billion. The corporate tax rate in the United Kingdom is bound to drop from 21 percent to 20 percent next year from 21 percent, benefitting companies based in the country.

On the other hand, the corporate tax rate in Italy is 31.4 percent. No thanks to usually restricting policies, Italy’s economy has stagnated over the past 14 years and contracted 10 of the last 11 quarters. Unemployment rates in the country are close to breaking new records.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries