Valentino rossi tax evasion case

Tax avoidance case

In 2007, the Italian tax authorities declared Rossi was being investigated for suspected tax evasion. Having previously unsuccessfully investigated Rossi for tax evasion in 2002, the authorities announced they were investigating Rossi for undeclared revenues of 112 million euros ($160 million) between 2000 to 2004. The officials said, against the European Taxes Agreements among European countries, Rossi's London residency has enabled him to take advantage of favourable tax conditions, such as only declaring earnings made in Britain and avoiding taxes on his lucrative merchandising and sponsorship contracts, commenting that Rossi had: "residency in London but is not domiciled there." It noted that in 2002, Rossi's Italian tax form declared earnings of 500 euros, while sponsorship contracts were all reported to be made out to foreign companies, but with his affairs controlled mainly from Italy. In February 2008, Rossi announced that he had reached a settlement with the Italian tax authorities: he paid 35 million euros to close the tax case.