Formula 1 drivers and teams could face criminal charges as Italian tax authorities are scrutinizing old records to ensure they have paid their taxes on the income earned during races hosted in Italy. Drivers with unpaid taxes of €50,000 or above could be charged with a criminal offense.
Italian tax laws mandate that athletes pay taxes for income earned from sporting events in Italy. F1 has held three Grands Prix in Italy in recent years- in Imola, Monza, and Mugello in 2020. Not only F1 but also athletes from other sports could face scrutiny.
According to a report by Resto del Carlino, the Italian Financial Police of the Bologna branch initiated an investigation into F1 teams and drivers, assessing whether taxes were paid on the income generated during Grands Prix held in Italy.
An Italian lawyer by the name of Alessandro Mei recently requested an investigation into the tax compliance of foreign athletes. The Court of Auditors reportedly requested that investigations be opened in the three provinces where F1 was or is active in Italy. Non-compliance could pose a legal hurdle for F1 teams and drivers who failed to pay taxes in the past for income generated through races in Italy.
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According to a report by RacingNews365, tax payments had not been requested from F1 drivers and teams in the past. However, due to the high salaries of the drivers, they have been contacted by the Italian Financial Police through a letter, requesting them to submit tax returns for 2025 and get in touch with the authorities, “either personally or through a representative, to discuss further steps.”
The report added that the Italian authorities also “intend to hold F1 personnel accountable retroactively. Where legally possible, they aim to settle unpaid taxes going back to multiple years.”
Authorities are reportedly willing to go into the details of driver sponsorship contracts to get a clear idea of their earnings. If any driver is found to have unpaid taxes exceeding €50,000, significant fines will be charged over the due amount.