F1 drivers could cop massive fines and be forced to back-pay thousands of dollars in taxes after Italian authorities launched a probe into the sport.
Italian media this week reported the Bologna division of the Guardia de Finanza (Italian Financial Police) has launched a deep-diving investigation into the incomes of teams and drivers earned in the country dating back as far as 2020.
According to Italian tax laws, foreign athletes competing in Italy are required to pay tax on all income earned in the country, although enforcement of the laws has been historically inconsistent.
READ MORE: Skipper floats shock axing as Origin teams take shape
READ MORE: ‘Difficult conversations’: Coach breaks silence after photo scandal
READ MORE: Crazy Titanic stat highlights depth of $1.4b Chelsea crisis
If drivers are found to have unpaid tax exceeding €50,000, they face criminal prosecution and significant fines on top of the requirement to back-pay the taxes. They would also be blocked from entering the country.
Lando Norris, Max Verstappen and Oscar Piastri after the 2025 Italian Grand Prix. LAT Images
The investigation was launched following a request by lawyer Alessandro Mei. While F1 is expected to be the main focus of the investigation, other athletes including footballers will be included.
Since 2020, F1 has raced in Italy 10 times at three different tracks – Monza, Imola and Mugello.
The investigation is expected to provide a headache for both police and the teams, given the complexities around sponsorship, prize money and other income.
There was also supposed to be an 11th race, held at Imola in 2023, that was cancelled at the 11th hour due to local flooding in the region. Many drivers were already in the country taking part in PR promotions and other sponsorship engagements.
The start of the 2024 Italian Grand Prix. NurPhoto via Getty Images
Italian authorities have reportedly asked for access to driver and sponsorship contracts to gain an accurate picture of finances.
Tax-collection, or lack thereof, from foreign athletes became a scandal in Italian politics in 2020 shortly before the COVID-19 pandemic, although little changed.
It’s unclear how different the investigation will be for drivers and personnel from the Ferrari and Racing Bulls teams, given both are based in Italy.
F1 will next compete in the country at the Italian Grand Prix at Monza in September.