Italy's antitrust complains of "economic damage" from FCA move to London

Cementir Holding NV

02/07/2019 13:38

ROME, July 2 (Reuters) - The decision by Fiat Chrysler
Automobiles (FCA) to move its financial and legal offices out of
Italy has caused major damage to Italian tax revenues, the
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  EXOR.MI  relocating its legal and
tax office to the Netherlands.
    "Italy is one of the most penalised countries," from fiscal
competition, Rustichelli said.
    The overall annual cost of such moves is between $5-$8
billion for Italy, Rustichelli said, mentioning Britain, the
Netherlands, Ireland and Luxembourg as among the countries
practising 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  MS.MI  - 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  CEMI.MI  has also announced
the transfer of its registered offices to the Netherlands.
    It was former FCA Chief Executive Sergio Marchionne, who
died in 2018, who decided to transfer the historic Italian car
brand, cementing a politically sensitive shift away from the
country, Fiat's home for more than a century.

 (Reporting by Francesca Piscioneri
editing by Keith Weir 
)
 ((francesca.piscioneri@thomsonreuters.com; +39 0685224352;
Reuters Messaging:
francesca.piscioneri.thomsonreuters.com@reuters.net))