Rossi agrees to pay 35 mln euros in taxes

By Nicola Scevola

PESARO, Italy (Reuters) - Former MotoGP world champion Valentino Rossi will pay 35 million euros ($51 million) to Italy's tax agency after coming to an agreement following a lengthy probe.

The 28-year-old will pay 19 million euros for the period 2001-2004 with payments for 2005 and 2006 making the total figure around 35 million.

"I am happy with how this issue has been resolved. It is a high figure but it is more important to be calm, serene and happy," he told a news conference on Tuesday in his home province of Pesaro on Italy's east coast.

The winner of seven world titles had been investigated for tax evasion linked to his decision in 2000 to take up residence in Britain and still spend time in Italy.

The Yamaha rider could have faced a bill for as much as 112 million euros but said that was "a threat to start talks". He will now declare taxes for 2007 in Italy, where he is planning to move to permanently.

"I had already decided to return to Italy. I couldn't return and have problems with Italian tax," he said, joking that he would not move back in with his mum. "Now I'm grown up."

Rossi is one of a number of high-profile Italian sports personalities to have their tax payments probed.

New England soccer coach Fabio Capello is being investigated for Italian tax fraud with a legal source saying last month that officials were seeing if "millions" had gone undeclared.