EU court sides with Fiat Chrysler in tax advantage case

LUXEMBOURG (AP) — The European Union’s top court has overturned a decision requiring automaker Fiat Chrysler to pay up to 30 million euros in back taxes to Luxembourg. The European Commission, the EU’s anti-trust regulator, had determined in 2015 that a Luxembourg tax ruling favored Fiat companies in Europe and was incompatible with state aid rules in the 27-nation bloc. The Court of Justice of the EU said Tuesday that the commission failed to take into account the typical tax laws in Luxembourg when it was determining whether the automaker got a tax advantage and that the EU’s General Court “committed an error of law” in upholding that approach in 2019. The EU’s competition commissioner called it a “big loss for tax fairness.”