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Italy Opens Tax Audits Targeting F1 Drivers, Teams

The move could yield large recoveries by applying Italy’s rule that foreign athletes owe tax on income earned in the country.

Overview

  • Italy’s financial police in Bologna have begun administrative checks on Formula 1 drivers and teams, with letters instructing drivers to file 2025 returns and contact investigators.
  • Authorities plan retroactive reviews covering 2020 through 2024, a span that includes three Italian Grands Prix in 2020 at Monza, Imola and Mugello.
  • Investigators are seeking driver and sponsorship contracts to calculate the portion of salaries, bonuses and appearance fees earned on Italian soil.
  • Italian law requires teams to withhold tax on income tied to Italian events, and unpaid amounts over €50,000 can trigger criminal charges in addition to back taxes and fines.
  • The probe follows a Court of Auditors mandate prompted by a complaint from lawyer Alessandro Mei, and reports describe early-stage audits with no criminal cases filed so far.