Formula 1 is no stranger to high-octane drama, but the latest twist comes not from the racetrack but from the tax offices of Italy. In a sweeping move that has sent shockwaves through the paddock, the Bologna branch of the Guardia di Finanza—Italy’s financial police—has launched an extensive probe into the tax affairs of every current and recent Formula 1 driver. The focus? Income earned from racing on Italian soil over the past several years, including at legendary circuits such as Monza, Imola, and Mugello.
This clampdown, first reported by the Bologna-based newspaper Il Resto del Carlino, is no fly-by-night operation. Authorities are attempting to retroactively collect taxes from drivers who competed in Italian Grands Prix, with the investigation stretching back to include races like the 2020 Tuscan Grand Prix at Mugello. According to multiple sources, including RacingNews365 and GPblog, the financial police have already begun contacting drivers directly by letter, requesting that they—or their representatives—submit tax returns for the 2025 tax year and provide detailed information about their income related to Italian events. The authorities are also seeking access to driver contracts and sponsorship agreements to determine the exact amounts attributable to Italian races.
At the heart of this probe is a long-standing but inconsistently enforced Italian tax law. Under this law, non-resident athletes—including Formula 1 drivers, who are treated as freelancers for these purposes—must declare and pay taxes on any income generated from sporting activities within Italy. For years, enforcement of this requirement has been sporadic at best, but that era appears to be over. The current crackdown was triggered by a formal request from Italian lawyer Alessandro Mei and a mandate from the Italian Court of Auditors. Mei, speaking to Il Resto del Carlino, left no room for ambiguity: “It 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.” He added, “I’m 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.”
The stakes for drivers and teams could hardly be higher. Article 10 of Legislative Decree No. 74/2000 stipulates that unpaid taxes exceeding €50,000 constitute a criminal offence in Italy. In such cases, not only can authorities recover the back taxes, but they can also impose substantial fines—and, in the most serious instances, pursue criminal charges. Even if the amount is less than €50,000, significant administrative penalties and interest can apply. Sources suggest that if the investigation covers multiple seasons and all relevant income streams, the sums involved could run into the hundreds of millions of euros across the grid.
For now, the investigation remains administrative. Both RacingNews365 and GPblog emphasize that no criminal charges have been filed, and the letters sent to drivers are requests for information and compliance—not accusations. However, the possibility of criminal proceedings looms if significant unpaid taxes are discovered. Formula 1 itself has yet to issue an official statement, and as of the time of writing, there have been no public comments from drivers or team principals. The story is still developing, and the paddock is abuzz with speculation about potential outcomes.
Teams are also firmly in the crosshairs. While drivers are technically freelancers under Italian law, teams—especially those based outside Italy—are generally expected to withhold and remit the appropriate taxes on behalf of their drivers. That said, the ultimate responsibility often falls on the individual drivers. Italian teams such as Ferrari and Racing Bulls (VCARB) are in a different position due to their domestic status, but foreign-based teams and their drivers are facing the full brunt of the investigation. GPblog reports that "the team is then obliged to withhold part of the driver’s salary and pay it directly to the Italian tax authorities on the driver’s behalf," but the legal onus does not disappear for the athlete.
This tax saga unfolds against a backdrop of broader regulatory changes within Formula 1. The FIA, the sport’s governing body, recently announced a package of rule changes to be implemented from the Miami Grand Prix in May 2026. These changes follow a series of meetings with teams, drivers, and engine manufacturers, and are aimed at addressing unforeseen issues that have cropped up in recent races. The FIA is even testing a new measure designed to prevent cars from getting away too slowly at the start after releasing the clutch—a tweak that will be trialed at the next round before being fully introduced.
Meanwhile, the 2026 F1 season finds itself on an unexpected hiatus, with a month-long break resulting from the cancellation of the Bahrain and Saudi Arabian Grands Prix due to ongoing conflict in the Middle East. Yet, as the action on the track pauses, the off-track drama is anything but quiet. The Italian tax probe has become the talk of the paddock, with drivers and teams scrambling to review their accounts and legal obligations.
Italian lawyer Alessandro Mei’s call for a thorough investigation has also extended beyond Formula 1. Mei recently filed a similar report regarding the tax status of foreign athletes competing in Formula E races in Rome, underlining the Italian authorities’ resolve to clamp down on tax evasion across multiple sports. As Mei put it, “given the millions of dollars in tax evasion that could potentially be uncovered,” the matter is one of both legal and ethical responsibility.
Italy’s aggressive stance is not unique in the world of sports taxation. Other countries, including Australia, the UK, and the United States, have similar systems in place requiring foreign athletes to pay taxes on income earned within their borders. However, Italy’s renewed enforcement—especially its retroactive reach—has many in Formula 1 concerned about the potential for hefty financial settlements, fines, or even criminal proceedings. The investigation’s scope, covering multiple seasons and all three Italian circuits used since 2020, means that few drivers or teams are likely to escape scrutiny.
As the Miami Grand Prix approaches and the F1 world prepares to return to racing, the Italian tax saga remains unresolved. Every driver on the current grid, as well as many recent alumni, is being asked to open their books and justify their Italian tax position. With administrative inspections ongoing and the specter of criminal charges hanging over the proceedings, the coming weeks promise to be as tense off the track as they are on it. For now, the motorsport world waits with bated breath to see just how far-reaching the consequences of this investigation will be.
One thing is certain: in Formula 1, the only thing more relentless than the pursuit of victory is the pursuit of unpaid taxes—at least in Italy.