The Guardia di Finanza, the Italian financial police, has launched administrative inspections into tax evasion by Formula 1 teams based outside Italy, GPblog can confirm.<\/p>\n
The Italian newspaper Il Resto del Carlino reported that the Italian tax authorities had launched an offensive that could have major consequences for Formula 1. Authorities are trying to retroactively collect taxes on income earned during races on Italian soil.<\/p>\n
GPblog has made inquiries and understands that only administrative inspections have been initiated at this time and that no criminal investigation is underway yet.<\/p>\n
It is somewhat unclear whether the drivers are being investigated or only the teams. In principle, the drivers are under contract with an employer, but foreign athletes are considered \u201cfreelancers\u201d in Italy.<\/p>\n
The team is then obliged to withhold part of the driver\u2019s salary and pay it directly to the Italian tax authorities on the driver\u2019s behalf. Assuming the latter, it appears that the responsibility therefore lies with the teams, except for Ferrari<\/a> and Racing Bulls<\/a>, which are based in Italy.Listen to or watch the GPblog.com video podcast. In the F1<\/a> Paddock Update, Jim Kimberley and Ben Hunt discuss the latest Formula 1 news. New episodes are available every Monday and Thursday on YouTube<\/a>, Spotify<\/a>, or your favourite podcast app.Italian lawyer called for a thorough investigation<\/p>\n Italian lawyer Alessandro Mei has called for a thorough investigation into the tax status of foreign athletes, telling Il Resto del Carlino: \u201cIt is not up for debate that athletes who earn income in Italy, even if they do not live in Italy, must declare it in Italy and pay taxes here.\u201d<\/p>\n \u201cI\u2019m not doing this for personal gain, but out of a sense of responsibility, given the millions of dollars in tax evasion that could potentially be uncovered,\u201d said Mei. Last Monday, Mei also filed a similar report regarding the Formula E races in Rome.<\/p>\n If teams are found guilty of tax evasion, there could be consequences with a hefty price tag. Article 10 of Legislative Decree No. 74\/2000 states that failure to pay taxes above \u20ac50,000 may constitute a criminal offence, in addition to administrative sanctions and the recovery of amounts due.<\/p>\n Make GPblog your preferred source on Google and see our content first in Google Discover<\/a> and Google News.<\/a>Grands Prix on three Italian circuitsOver the past six years, Italy has hosted multiple Grands Prix at Mugello, Imola<\/a>, and Monza.<\/p>\n Currently, only Monza remains on the Formula 1 calendar, but calculations for all Grands Prix in recent years could still lead to a substantial financial dossier.<\/p>\n Follow GPblog on social media to stay updated on all Formula 1<\/a> news: Facebook<\/a>, Instagram<\/a> and TikTok<\/a>.