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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…
Italian authorities are investigating possible tax evasion involving foreign Formula 1 teams and drivers, focusing on earnings from races at Monza, Imola, and Mugello. Formula 1 drivers are considered self-employed under Italian tax law, with teams acting as withholding agents, deducting tax on income linked to Italian events. The investigation has been intensified following a formal complaint by attorney Alessandro Mei and preliminary findings by tax expert Emilio De Santis, prompting demands for retroactive compliance. Evading over €50,000 in taxes could lead to criminal charges, with fines or prison sentences possible, although prison time is not expected in this case. The Italian tax agency aims to recover potentially hundreds of millions of euros from Formula 1 participants for back taxes owed.