Ferrari enhances cooperation with Italian tax authority for transparency to prevent tax disputes.

Ferrari's tax compliances: Ferrari, the Dutch parent company of the renowned Italian auto manufacturer has announced that it has strengthened its relationship with the Italian tax authority by joining a new compliance program. This initiative is designed to enhance transparency and prevent potential tax disputes through regular and aggressive checks.

Ferrari is an iconic Italian brand, which has relocated its registered office to the Netherlands in 2015. This move of shifting its registered office was part of a broader restructuring process that included the separation from its former parent company, Fiat Chrysler, and its subsequent listing as an independent entity in early 2016. Despite this relocation, Ferrari has maintained its fiscal base in Italy and continues to pay a significant portion of its taxes there, with its primary stock market listing in Milan.

The new compliance program by the tax authorities, effective from the fiscal year 2023, involves Ferrari adopting and validating an internal tax risk control system known as the 'Tax Control Framework'. This framework is designed to ensure strong tax compliance and promote a cooperative relationship with the Italian tax authorities.

Ferrari's participation in the program marks a continuation of its commitment to transparency and regulatory compliance. The Italian subsidiary, Ferrari SpA, had already joined a similar fiscal cooperative compliance program last year which further demonstrated the group's dedication to attaching to tax regulations.

The company's move to strengthen its compliance practices reflects its ongoing efforts to uphold high standards of financial integrity and transparency. By engaging with the Italian tax authorities in this bold manner, Ferrari aims to reduce its risks and maintain a positive and cooperative relationship with regulators.

Recently, Ferrari announced that it will extend its cryptocurrency payment initiative for luxury sports cars to its European dealer network by the end of this month. It was followed by a successful launch in the United States last year. Ferrari has highlighted that a majority of its dealers in Europe have already adopted or are in the process of adopting the new payment method.

(with Reuters input)