Formula 1 may face a new headache off the track. Italian tax authorities have launched an offensive to collect taxes from drivers who have competed in the country in recent years.
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This measure could generate significant legal complications for teams and drivers, as the collection includes the possibility of retroactive review of earnings obtained during races held on Italian territory. The move also raises concerns about contracts and earnings related to sponsorships.
According to information released by the Italian newspaper Il Resto del Carlino, the Bologna unit of the Guardia di Finanza, the Italian financial police, has initiated investigations involving Formula 1 teams and drivers. The objective is to verify whether taxes on revenues obtained during races in Italy have been duly paid.
Italian tax legislation stipulates that foreign athletes must pay taxes on earnings obtained from sporting events held in the country. However, the application of this rule has been inconsistent over the years, which led lawyer Alessandro Mei to request a broader investigation into the tax compliance of foreign athletes.
Although the rule applies to different sports, Formula 1 has become the main focus due to the category’s popularity and drivers’ high salaries. Sources indicate that the Guardia di Finanza has opened investigations involving current and recent drivers in the category, even if there was no formal payment requirement previously.
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Still according to the information, the drivers received letters requesting the submission of tax declarations for the year 2025. The authorities also asked those involved to make contact, personally or through representatives, to discuss the next steps.
This investigation could go further. Italian authorities intend to analyze earnings in detail, including access to driver contracts and sponsorship agreements. If the amount of unpaid taxes exceeds approximately US$ 55,000, the case could be treated as a criminal offense, in addition to the application of significant fines.
In recent years, Formula 1 has held races at three Italian circuits: Monza, Imola, and Mugello, the latter used during the 2020 season. The Italian Court of Auditors reportedly requested investigations in these regions, initiating the process that could now have a direct impact on drivers and teams.
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