Italian Tax Authority Targets F1 Drivers Over Unpaid Race Earnings

The Italian Guardia di Finanza has opened a retroactive tax probe into all foreign Formula 1 drivers who earned money at Monza, Imola and Mugello. Letters have been sent demanding 2025 tax returns, and authorities say they will pursue unpaid taxes dating back several seasons.

Why it matters:

The move threatens the financial stability of high‑earning drivers and could force teams to restructure contracts. Unpaid tax above €50,000 is a criminal offence, exposing athletes to fines, possible prison time and reputational damage.

The details:

• Investigation covers races at Monza, Imola and Mugello from 2020‑2024.
• Drivers must file 2025 returns and provide contracts, sponsorship deals and race‑day earnings.
• Unpaid tax over €50,000 triggers a criminal offence, adding prison terms and fines to the back tax.
• The Guardia di Finanza, authorized by the Court of Auditors, will audit the three provinces hosting the races.

What's next:

If the audit uncovers substantial arrears, drivers could face legal battles that distract from on‑track performance and pressure teams to renegotiate contracts. Teams may withhold payments until compliance is proven, and Italy could tighten reporting rules for foreign athletes, setting a precedent for future enforcement.