ROME -- The decision by Fiat Chrysler Automobiles to move its financial and legal offices out of Italy has caused major damage to Italian tax revenues, the country's national competition watchdog said on Tuesday.
In an annual report to parliament, antitrust head Roberto Rustichelli complained about "the significant economic loss of state revenues" caused by FCA moving its fiscal headquarters to London and its parent Exor relocating its legal and tax office to the Netherlands.
"Italy is one of the most penalized countries," from fiscal competition, Rustichelli said.
The overall annual cost of such moves is between $5 billion-$8 billion for Italy, Rustichelli said, mentioning Britain, the Netherlands, Ireland and Luxembourg as among the countries practicing unfair tax competition.
The comments come 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.
Italian cement maker Cementir has also announced the transfer of its registered offices to the Netherlands.
Former FCA CEO Sergio Marchionne, who died in 2018, decided to transfer the automaker, cementing a politically sensitive shift away from the country.