Italy’s tax chief criticizes Fiat’s move abroad

Rome (dpa) – The head of Italy‘s tax office, Rossella Orlandi, on Monday criticized automaker Fiat‘s decision to move its tax residence to Britain after completing a merger with US peer Chrysler.

“I would … like to stress that we need some sense of national pride. In Germany tax rates are similar to those in Italy, yet I don‘t think anyone has ever imagined that Mercedes could leave Germany,” Orlandi said at an event in L‘Aquila, central Italy, as quoted by the ANSA news agency.

Orlandi praised fashion group Prada for moving its tax headquarters from the Netherlands and Luxembourg back to Italy as part of a deal with tax authorities, and said other Italian businesses were considering doing the same.

The Fiat-Chrysler merger was completed in October. The group also relocated its legal headquarters in the Netherlands.

Last week Fiat-Chrylser denied having similar tax and legal relocation plans for its subsidiary Ferrari, which is expected to be made into a stand-alone company over the course of next year.