Chrysler Canada Hit by $500 Million in Taxes

Even as Chrysler has their hand held out for the over $1 Billion they’ve requested from the federal government in bailout loans, that same government has reassessed their tax situation and hit the massive employer with $500 million in tax penalties.

The result of penalties incurred for shipping parts and vehicles across the border to take advantage of transfer pricing, the tax bill comes shortly after Chrysler had vowed to use any funds proffered to keep their operations in the black, not pay tax penalties. Possibly the worst news the auto giant could get at a time like this, the only hope the pentastar brand has is to hope that the US government will grant the brand’s US branch a reprieve. With treaties in place to allow just such assistance from the US, the next few weeks will be stressful for Chrysler Canada’s executives.