PRESS RELEASE No 178/22

Luxembourg, 8 November 2022

Judgment of the Court in Joined Cases C-885/19 P | Fiat Chrysler Finance Europe v Commission and C-898/19 P | Ireland v Commission

Tax rulings: The Court of Justice holds that the General Court was wrong to confirm the reference framework used by the Commission to apply the arm’s length principle to integrated companies in Luxembourg, in failing to take into account the specific rules implementing that principle in that Member State

The Court thus annuls the decision of the Commission, finding that its analysis of the reference system and, by extension, the existence of a selective advantage granted to FFT is erroneous

On 3 September 2012, the Luxembourg tax authorities adopted a tax ruling in favour of Fiat Chrysler Finance Europe (‘FFT’), an undertaking of the Fiat group that provided treasury services and financing to the companies of the group established in Europe. The decision at issue approved a methodology for determining FFT’s remuneration for those services, which enabled FFT to determine its corporate income tax liability to the Grand Duchy of Luxembourg on a yearly basis.

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