The Italian tax authorities have questions for the racers.
According to Italian law, foreign athletes participating in sporting events in Italy are required to pay taxes on income earned there. This applies to all sports, but Formula 1 has come under scrutiny due to its popularity and high salaries.
A few days ago, Il Resto del Carlino reported that the Bologna branch of the Italian financial police has launched an investigation into Formula 1 teams and drivers. They are determining whether taxes on income earned during competitions in Italy were properly paid. The situation could lead to legal complications for both teams and drivers, although teams have experienced lawyers and are familiar with this issue.
The tax authorities have sent letters to drivers requesting them to submit tax returns for the year 2025 and to contact the authorities either personally or through a representative to discuss further steps. Tax officials want to retroactively hold Formula 1 personnel accountable, resolving tax issues from several years ago.
In recent years, Formula 1 races have been held at three Italian tracks – in Monza, Imola, and Mugello. The Court of Auditors has ordered investigations in all three provinces.
A similar tax system for non-resident athletes is used in Australia, the UK, and the USA.
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The Italian tax authorities have questions for the racers.
According to Italian law, foreign athletes participating in sporting events in Italy are required to pay tax on the income earned there.