SEVEN-TIME World Champion Valentino Rossi is in negotiations with the national revenue service to work out his tax problems, the father of the seven-time world champion said, says Italian news agency ANSA.
''There's still no deal with the taxman but negotiations are under way. I don't really know how long they'll take,'' Graziano Rossi said.
Sources at the Marche region's tax office confirmed the talks but added ''there are no new developments. When there are we will announce them''.
The Yamaha rider's father said his son was currently in London, where he officially lives, and added ''I don't know if he'll be back for Christmas, but I hope he will''.
Rossi was placed under investigation last August over possible undeclared earnings of 60 million euros for the period 2000-2004.
The state is reportedly going after Rossi for a total of 120 million euros. This figure comprises 43.7 million euros of unpaid tax as well as fines and interest that almost triple the amount he owes Italy.
The tax office investigation is linked to Rossi's decision to take up British residency in 2000.
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, according to the Italian taxman.
Rossi has denied any wrongdoing and claims that he is caught in the middle of a legal dispute between Britain and Italy.
According to Italy's Junior Economy Minister Vincenzo Visco, who is spearheading a government crackdown on tax evasion, British tax rules create a legal loophole and he has promised to challenge them through the European Union.
Rossi has indicated that he will pay up without a fight if the probes go against him.
''I think I've done everything according to the rules and that my collaborators have done their best for me while respecting the rules,'' Rossi said in September.
''After this check it will become clear whether they have made mistakes, but in any case I will shoulder my responsibilities,'' he said.
Rossi was probed for suspected tax evasion in 2002 but no evidence of wrongdoing was found and the case was shelved.
He is one of the world's highest paid sportsmen. Last year, he was reported to have earned 12 million euros from his Yamaha contract and 25 million from sponsorship and merchandising deals.
Rossi's tax problems were seen by many observers one of the reasons why the Yamaha rider has his worst season ever this past year.
