Formula 1 is facing one of the most surreal legal predicaments. The Italian tax authorities have just realized that they have been years failing to collect taxes from Formula 1 teams and drivers, so they intend to fix it in a heavy-handed way: they sent a letter to each driver asking for their 2025 incomes, and the issue could end up in multimillion-dollar fines.
According to the Italian newspaper ‘Il Resto del Carlino’, the Guardia di Finanza, which is the Italian financial police, has opened an investigation into the Formula 1 teams, the drivers on the current grid, and those who have recently passed through it. The aim is to recover unpaid taxes from years past, plus an extra amount.
Italy demands retroactive accountability from Formula 1 personnel
The Italian police have sent a letter to every driver on the current Formula 1 grid, and also to those who have recently been part of it. The reason is that they have realized tax payments have gone unpaid for years, and now they want to apply retroactively. But that is not all, as they also intend to penalize those who paid on time.
In Italy, a portion of the money earned there must be taxed, and recall that until last year there were two Formula 1 races in Italy, Imola and Monza. In fact, in 2020 there was a third at Mugello. Now the Guardia di Finanza demands to know how much the drivers earned in salary and sponsorships over the last year.
All of this stems from a request for a tax investigation by lawyer Alessandro Mei, who asked for a detailed study of foreigners’ tax payments in Italy. The conclusion was that teams and Formula 1 drivers have slipped through the cracks for years, and now they may be asked not only to repay what is owed, but perhaps even more.
Because if the unpaid amount exceeds 50,000 euros, the offense will be considered a criminal offense. And in that case the driver would not only have to pay the outstanding amount, but could face a multimillion-dollar fine. Theoretically, Italy can pursue this even though it itself did not claim the taxes.
Theoretically the only ones who would be spared are driver Kimi Antonelli, the current World Championship leader, and the Ferrari and Racing Bulls teams, since this law applies only to non-resident athletes, so Italians themselves would be exempt. The rest of Formula 1 seems doomed to dig deep into their pockets against the Italian Tax Office.
In fact, the issue has already reached the Italian Parliament and has become a topic of public discussion. Now everything is in the hands of the Guardia di Finanza.
Images | Formula 1
