Italy’s antitrust watchdog has complained that with more companies following FCA’s trail, the Italian state will see severe loss of state revenues.
Italy’s national competition watchdog has stated, the decision by Fiat Chrysler Automobiles (FCA) to move its financial and legal offices out of Italy will have a significant impact on the state’s tax revenues.
In an annual report to parliament, Italy’s Antitrust head Roberto Rustichelli has complained of “significant economic loss of state revenues” when FCA moves its fiscal headquarters to London.
FCA and its parent Exor are relocating their legal and tax office to the Netherlands.
“Italy is one of the most penalized countries,” from fiscal competition, said Rustichelli.
The move is likely to cost Italy between $5-$8 billion.
Rustichelli complained that Britain, Ireland, the Netherlands, and Luxembourg are practicing unfair tax competition.
His comments comes at a delicate juncture as more companies have recently announced plans to follow in FCA’s footsteps.
Italian broadcaster Mediaset – controlled by the family of former Prime Minister Silvio Berlusconi – wants to relocate its legal headquarters to Amsterdam to support its pan-European growth strategy.
Incidentally, Italian cement maker Cementir has also announced the transfer of its registered offices to the Netherlands.