ROME, July 3 (Xinhua) -- The European Union's low-tax countries are costing Italy billions in lost revenue each year, according to the head of Italy's competition regulator.

Roberto Rustichelli, president of the Italian Antitrust Authority, told members of the European Commission that uneven tax policy across Europe threatens to "undermine the foundation" of the European Union by siphoning tax revenue between jurisdictions.

"It cannot be denied that Ireland, the Netherlands, and Luxembourg collect around 270 billion (U.S.) dollars in sidetracked profits" that should be recorded in other countries, Rustichelli said, according to a transcript released Friday by the Italian Antitrust Authority.

Rustichelli estimated that some 23 billion U.S. dollars incorporate revenue that should be taxed in Italy were instead taxed in other countries with lower tax rates.

"The damage to Italy can be estimated at between 5 and 8 billion" U.S. dollars, Rustichelli said.

Rustichelli called for reforms to European tax policy to help reduce what he said were "unfair" distortions. He said that low-tax jurisdictions make it more difficult for Italy and other countries to use the tax system to help reduce their levels of public debt. Enditem

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