F1 stars under tax evasion investigation worth 'hundreds of millions'

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F1 stars under tax evasion investigation worth 'hundreds of millions'

Italian authorities are chasing F1 drivers and teams over tax evasion

By Vincent Bruins.

Tuesday 21 April 2026 18:57

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The Italian financial investigation unit, Guardia di Finanza from Bologna, has launched a major inquiry into possible tax evasion involving foreign Formula 1 teams and their drivers.

The investigation focuses on earnings from recent grands prix at the Monza, Imola, and Mugello circuits.

Authorities suspect that the teams may have routinely failed to remit the required withholding tax, potentially resulting in hundreds of millions of euros in back taxes.

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Under Italian tax law, Formula 1 drivers are classified as self-employed, while the teams they race for act as the withholding agents.

This arrangement requires teams to deduct a 'ritenuta alla fonte', a tax on the portion of salaries and sponsorship income directly linked to Italian events.

Although enforcement of this rule has been inconsistent in the past, the tax authorities are now demanding strict retroactive compliance for the period from 2020 to 2024.

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Attorney files formal complaint

The investigation has intensified following a formal complaint lodged last June by Bologna-based attorney Alessandro Mei.

His claim was built on preliminary findings by tax expert Emilio De Santis, whose work in 2020 even prompted questions in parliament.

“There is no doubt that athletes earning income in Italy, regardless of where they live, must declare and pay taxes in Italy,” Mei explained.

He stresses that his actions are driven by a sense of responsibility, not personal gain, given the potentially massive scale of the evasion.

Mei has also enlisted regional authorities from Lombardy, Emilia-Romagna, and Tuscany to help ensure tax compliance around the circuits.

Potential criminal charges

According to eucrim, which conducts criminal law analysis in collaboration with the Max Planck Institute for the Study of Crime, Security and Law and the European Commission, evading more than €50,000 in taxes can trigger criminal charges under decree 74/2000.

Offenders could face steep fines or even prison sentences ranging from six months to five years if taxes owed by non-Italians earning in Italy are not collected.

While prison time is not anticipated, the Italian tax agency is determined to recover potentially hundreds of millions of euros from the Formula 1 participants.

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