Max Verstappen’s manager Raymond Vermeulen has slammed a report claiming the driver is “avoiding tax” in the Netherlands by living in Monaco.
Domiciled in Monaco instead of the Netherlands, Verstappen is living in a tax haven as the Principality does not tax individuals on their income.
That saves him a pretty penny as, with an annual income of some 64 million euros, Verstappen would be paying a large portion of that over to the taxman if he was living in the country under whose flag he races, as the Netherlands’ top income tax rate is 49.5%.
According to De Volkskrant, if Verstappen ‘remains based in Monaco until 2028, his tax benefit will increase to at least 200 million euros over 13 years.’ The article went onto question if that was ‘morally acceptable behaviour’.
Vermeulen has hit out at the suggestion of tax avoidance.
“It is factually incorrect what is written by De Volkskrant,” RTL quotes the Dutchman’s manager as having told Dutch programme Jinek.
“We pay taxes on the sports performances we deliver in the Netherlands, such as the income he earned during the Dutch Grand Prix in Zandvoort.
“We also pay taxes in other countries where he as a sportsman generates income.
“Furthermore, we have no activities in the Netherlands.
“Why should we have to pay tax on foreign income there? It would be strange if you paid twice, these are the international rules.”
He added: “One can find something moral about everything, in the end it’s just the legal and fiscal legislation and we adhere to that in all shapes and sizes.”
Having moved to Monaco after his 18th birthday, Verstappen revealed last season: “To be honest, I think, for me, it’s nicer to live in Monaco than Amsterdam because I can be more myself.
“I don’t like to be recognised all the time. I would prefer to drive Formula 1 and then not get at all, secretly. But that is not possible.”