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Fiat Chrysler loses court appeal to EU tax ruling

The General Court of European Union on Sept. 24 upheld a 2015 decision by the European Commission forcing Fiat Chrysler Automobiles NV to pay up to €30 million in taxes to Luxembourg over an unfair tax advantage the automaker received.

The competition watchdog, in 2015, concluded that Luxembourg granted selective tax advantages to Fiat Chrysler. The Commission then ordered the country to recover between €20 million and €30 million from FCA.

The automaker was accused of setting prices for goods and services sold between subsidiaries, known as transfer prices, below the market rates and which artificially lowered their taxes.

Fiat Chrysler appealed the Commission's ruling through a subsidiary. That appeal was dismissed along with upholding the fine, the General Court said in a statement.

Commissioner Margrethe Vestager said in a Sept. 24 statement that "all companies, big and small, should pay their fair share of tax. If Member States give certain multinational companies tax advantages not available to their rivals, this harms fair competition in the EU."

Fiat Chrysler did not immediately respond to S&P Global Market Intelligence's request for comment.