Italian tax probe targets Formula 1 teams and drivers after Monza and Imola races. Italian authorities launch a tax investigation into Formula 1 teams and drivers.

Authorities examine compliance of F1 drivers over earnings from Italian Grands Prix

Italian financial authorities have launched a detailed investigation into Formula 1 teams and drivers regarding tax compliance linked to recent Grands Prix held in Italy. The probe, led by the Guardia di Finanza, focuses on whether foreign teams and high-profile drivers have correctly fulfilled their fiscal obligations for income generated during races on Italian soil.

Until the 2025 Formula 1 season, Italy was a key fixture on the calendar with two races — the historic Italian Grand Prix at Monza and the Emilia Romagna Grand Prix at Imola. Additionally, the Mugello circuit temporarily hosted a race in 2020 as part of a revised calendar during the global COVID-19 pandemic. However, starting from 2026, Imola will be replaced by a new event in Madrid, marking a shift in the European race schedule.

Despite these changes, attention has now turned to past events, with authorities reviewing financial practices related to races held at Monza, Imola, and Mugello. According to reports from Italian media, the investigation aims to verify whether all tax liabilities linked to driver earnings were properly declared and settled.

Focus on driver income and team responsibilities

Under Italian law, Formula 1 drivers are generally classified as self-employed professionals. This means that even if drivers like Charles Leclerc and Lewis Hamilton reside outside Italy, they are still required to pay taxes on income earned from events hosted within the country. The complexity arises from the international nature of Formula 1 contracts, which often involve multiple jurisdictions, sponsorship agreements, and performance-related bonuses.

The Guardia di Finanza is therefore examining whether teams have correctly managed withholding tax obligations on behalf of their drivers. This includes reviewing payment structures, contractual arrangements, and the distribution of income tied to race participation.

The investigation is being coordinated by authorities in Bologna, working alongside regional branches of the Corte dei Conti in Lombardy, Emilia-Romagna, and Tuscany. This multi-regional effort reflects the scale and potential financial significance of the inquiry.

Audits extend across multiple seasons

Reports indicate that both Formula 1 teams and drivers have already been contacted by officials as part of a comprehensive audit process. The scope of the investigation is not limited to the most recent races, but extends back several years, including the 2020 season when Mugello hosted a one-off Grand Prix.

Authorities are expected to carry out in-depth reviews of contractual documentation, including driver agreements and sponsorship deals, to determine how income was structured and whether it complies with Italian tax regulations. Particular attention is likely to be paid to how earnings were allocated between different jurisdictions.

While no formal conclusions have been announced, the process suggests a thorough examination of financial practices within the sport, especially given the high earnings associated with top-tier drivers.

Origins of the investigation and potential implications

The inquiry is understood to have been initiated following a formal complaint submitted last year by Bologna-based lawyer Alessandro Mei. This triggered a broader review by Italian authorities, who are now seeking to establish whether any discrepancies exist in the reporting and payment of taxes related to Formula 1 activities in the country.

The outcome of the investigation could have significant implications, not only for the teams and drivers involved but also for how Formula 1 handles tax compliance in jurisdictions hosting Grands Prix. It may prompt greater scrutiny of financial arrangements and encourage more standardized practices across the sport.

For now, the situation remains under review, with authorities continuing their analysis. As Formula 1 evolves both technically and commercially, cases like this highlight the increasing importance of financial transparency and regulatory compliance alongside on-track performance.