Here's what we know about the €200million tax avoidance accusations on Max Verstappen

Max Verstappen’s manager Raymond Vermeulen has refuted a recent media report that accused the Dutchman of avoiding taxes of up to €200million. A report by Dutch news outlet, De Volkskrant claimed if the reigning world champion remains based in Monaco until 2028, his tax benefit will increase to at least 200 million over 13 years. While the report questioned if this was a ‘morally acceptable behavior’, Vermeulen has now hit out at the tax avoidance claims.

As reported by Planet F1, speaking on Dutch programme Jinek, Vermeulen said, “It is factually incorrect what is written by De Volkskrant”. He further explained that Max Verstappen pays taxes for the income he generates in the Netherlands, alongside other countries where he earns money. “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,” he said.

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"Why should we have to pay tax on foreign income there?"

“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. 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,” the manager added.

Domiciled in Monaco instead of the Netherlands since his 18th birthday, Max Verstappen is living in a tax haven as individuals living in Monaco don’t have to pay income taxes in the Principality. The reigning F1 world champion is said to have an annual income of 64 million euros. It is worth noting that Dutch citizens have a top income tax rate of 49.5%.

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As per Planet F1, the Red Bull driver opened up on not living in the Netherlands last season and said, “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.”