F1 stars under tax evasion investigation worth ‘hundreds of millions’
A major financial investigation has hit Formula 1, with several drivers and teams now under scrutiny in Italy over alleged tax irregularities linked to income earned during Grand Prix weekends.
Italian financial police, the Guardia di Finanza in Bologna, are examining whether foreign F1 drivers and their teams properly declared and paid taxes on earnings generated at Italian circuits such as Monza, Imola, and Mugello. �
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Authorities believe that teams may have failed to correctly withhold tax on driver salaries and related income tied to racing in Italy, potentially leaving unpaid liabilities running into hundreds of millions of euros. �
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Under Italian tax law, drivers are treated as self-employed, while teams act as withholding agents responsible for deducting tax at source on income earned within the country. Investigators say this system was not consistently enforced in past seasons, but they are now demanding retroactive compliance covering several years, reportedly from 2020 to 2024. �
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The probe escalated after a formal complaint was filed by an Italian lawyer, triggering renewed scrutiny of how Formula 1 income—especially race-day earnings and sponsorship-related payments—is structured and reported.
Officials are also reviewing private contracts and image-rights deals to determine whether additional taxable income was declared correctly.
While no criminal charges have been confirmed yet, Italian tax laws state that significant unpaid amounts could lead to heavy fines and even criminal proceedings if thresholds are exceeded.
The investigation is still ongoing, but it has already sent a wave of concern through the paddock, given the scale of the potential financial exposure for some of the sport’s biggest names.