Italian Tax Authorities Launch Investigation into Formula 1 Drivers and Teams

Italian financial police have launched a comprehensive investigation into Formula 1 drivers and teams with the aim of collecting taxes on earnings generated during competitions held in Italy. According to Italian law, foreign athletes are required to pay taxes on income earned while competing in the country. Although this rule was rarely enforced in practice before, tax authorities are now determined to apply it rigorously.

Authorities have already sent letters to current and former drivers demanding submission of tax returns for the year 2025. The investigation targets not only the drivers but also team personnel. Officials seek access to contracts and sponsorship agreements to conduct thorough checks and recover unpaid taxes retroactively over several years.

If the amount of unpaid tax exceeds €50,000, it will be considered a criminal offense for individuals, potentially resulting in substantial fines. It is worth noting that similar tax systems for non-resident athletes are already actively enforced in the United States, the United Kingdom, and Australia.