Italy has launched a new fiscal offensive against Formula 1, placing drivers and teams under scrutiny. The Guardia di Finanza has opened investigations to verify whether drivers paid taxes on income earned during Grands Prix held on Italian soil. The newspaper Il Resto del Carlino first reported the development, linking the initiative to a broader effort to enforce tax rules on non-resident athletes.
Italian law requires foreign athletes to pay taxes on income generated within the country. Authorities have applied this rule inconsistently in the past, which has created uncertainty and potential gaps in compliance. Lawyer Alessandro Mei recently pushed for stricter oversight and called for systematic checks on foreign athletes’ tax positions.
Within the global sports landscape, the Formula 1 stands out due to its popularity and the high earnings of its drivers. In recent years, the championship has raced at the Autodromo Nazionale Monza, the Autodromo Enzo e Dino Ferrari, and the Mugello Circuit. The Court of Auditors reportedly urged authorities to carry out checks across the provinces that host these events, which triggered the current wave of investigations.
Authorities have contacted both current and recent drivers by letter and have asked them to submit tax returns for the 2025 tax year. Officials have also requested direct engagement, either in person or through representatives, to clarify next steps. At the same time, authorities plan to pursue unpaid taxes retroactively wherever the law allows.
Investigators intend to conduct in-depth financial reviews. They want access to driver contracts, team agreements, and sponsorship deals in order to determine the exact share of income linked to activities in Italy.
Drivers could face serious consequences. Italian law treats unpaid taxes above €50,000 as a criminal offence, and authorities can impose substantial fines in addition to recovering the owed amounts.
Italian policymakers have already debated the taxation of non-resident athletes in 2020, but they did not follow through with strong enforcement at that time. Now, this stricter approach signals a clear shift. Other countries, including the United Kingdom, the United States, and Australia, already apply similar tax systems more consistently.
This crackdown could reshape how Formula 1 drivers and teams structure their contracts and manage race-related income. Legal disputes may follow as authorities attempt to recover taxes from previous years.