Ferrari may leave Italy to cut its corporate tax bill

Ferrari’s potential exit from Italy is causing some hand-wringing in its home country.

The possibility of shifting its tax residence from the iconic Maranello headquarters, where its first sports cars were built in 1947, is generating a debate in Italy about the risk of losing the country’s most famous brands as the economy struggles to emerge from its longest recession.

“Ferrari Fleeing to London,” was the front page headline in Milan daily Il Giornale, the newspaper owned by former prime minister Silvio Berlusconi’s family.

Ferrari is considering moving its fiscal residence outside Italy to save on corporate taxes.

The risk of losing Ferrari after its parent company Fiat and the truck and tractor maker CNH Industrial moved headquarters to the UK has prompted politicians and union leaders to ask prime minister Matteo Renzi to intervene.

“Corporate taxes remain too high, investment plans to modernise the country are nowhere to be seen, while resources are getting destroyed by corruption,” said Carla Ruocco, of the opposition Five Star Movement and deputy chairman of the Lower House Finance Committee. “Given this business environment, it’s not surprising that more and more companies and investors are fleeing the country.”

Several well-known Italian brands have been sold to foreign companies in the last five years.

Luxury goods maker Bulgari and Loro Piana were bought by billionaire Bernard Arnault, motorbike maker Ducati was purchased by Volkswagen, while airline Alitalia was rescued by Etihad Airways.