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Italy tax authorities say Fiat underestimated value of Chrysler by $5.6 billion


MILAN (Reuters) - Italian tax authorities believe that Fiat Chrysler Automobiles (FCHA.MI) underestimated the value of its U.S. business by 5.1 billion euros 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 to the company a final audit report in October this year “which, if confirmed ...


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