Report, the Rai3 investigation broadcast, recently focused on Ferrari and the Maranello team’s driver contracts paid up to 2020 through a Swiss company, directly connected to the Prancing Horse. Emilio De Santis, Antonio Giovinazzi’s accountant until recently, explained how the payment of the drivers’ emoluments takes place: “Sportsmen’s compensation is taxed exclusively in the place where the event in which they participate takes place. If there is a general remuneration that provides for participation in the event – for example the Italian GP -, for the portion of this presence I am taxed in Italy”.
Formula 1 drivers are considered self-employed in all respects and tax payments are made by the team to which they belong, which are their clients and act as withholding agent, paying the due part. De Santis then told how “some Italian teams” have a habit of using external companies to pay their drivers, thus deviating from the withholding part.
A tax consultant who remained anonymous then spoke and deepened the discussion, showing a journalist the contract of a Ferrari driver, whose working relationship appeared to be with GSA – Gestions Sportives Automobiles. Some confidential contracts of both Ferrari and Alfa Romeo pass through the GSA, a company based in Switzerland, which sent this consultant the certifications of the taxes paid in the racing venues. In Monza, however, there seems to have been an exception, with GSA that would have confirmed to the intermediary the non-payment of this withholding tax in Italy. However, this is legal according to the consultant, since those who have their headquarters abroad have no obligation to pay the withholding tax to the Italian tax authorities. Report thus deepened the investigation relating to GSA, discovering that it is 100% controlled by Ferrari, which has 10 employees and that Maranello drew 45 million euros from the rich Swiss company in 2020 and almost 60 in 2019 went to the Geneva office, finding an armored door inside a building that houses several companies, where none of the GSA has ever been revealed, as assured by the head of the structure. Having a company in Switzerland therefore brings an obvious tax advantage, as the Italian contribution wedge is higher than the Swiss one. In fact, companies can pay 5% on business income, instead of 24% in Italy.
Show your support for Scuderia Ferrari with official merchandise collection from Puma!
At the end of the service the official explanation of Ferrari was shown: “GSA is in liquidation. It managed the relationships with the drivers of different categories, ensuring the economic balance with the related commercial revenues. GSA was established in Switzerland, because it is the home of the largest sports federations such as Fifa, Uefa and FIA. It was also the most organized company due to the presence of professionals to protect the rights of sports professionals. GSA complied with all tax obligations in the countries hosting the GPs (including Italy)”. Today the Ferrari driver contracts are managed directly by Ferrari.
Leave a Reply