Italy

Fiat underestimated the value of Chrysler 

Fiat

Italian tax authorities believe that Fiat Chrysler Automobiles underestimated the value of its U.S. business by €5.1 billion following Fiat’s phased acquisition of Chrysler, according to a company filing and a source close to the matter.

The audit, which concerns transactions dating back to 2014, could result in FCA having to pay back taxes for $1.5 billion, the source added, confirming a report by Bloomberg.

FCA said in its third-quarter report that the tax authorities had issued the company a final audit report in October this year “which, if confirmed in the final audit assessment, could result in a material proposed tax adjustment related to the October 12, 2014 merger of Fiat SpA into FCA NV.”

A spokesman for Italy’s tax agency declined to comment.