Italian tax authorities are understood to be leading a clampdown on tax enforcement – which could impact F1 drivers.
The Italian tax authorities are cracking down on foreign athletes, including Formula 1 drivers, who have not paid proper taxes on income earned during races in Italy, causing legal complications for both teams and athletes.
The Guardia di Finanza has launched an investigation into all current and recent F1 drivers, requesting tax returns for the 2025 tax year and aiming to settle unpaid taxes going back several years.
If drivers owe more than €50,000 in unpaid taxes, they could face criminal charges and substantial fines on top of back taxes, with the tax authority looking into driver and sponsorship contracts in detail.
This strict enforcement comes after the Court of Auditors mandated investigations in provinces where F1 races have taken place, following discussions in 2020 in the Italian parliament about tax collection from non-resident athletes.
Similar tax systems are used by countries like Australia, the UK, and the United States, but the recent enforcement in Italy is putting pressure specifically on F1 drivers due to the high profile of the sport and the income levels involved.