Valentino Rossi was handed a £14million broadband bill yesterday after he reached an agreement with the Italian tax authorities only weeks before the start of the new MotoGP season.

The seven-times world champion had been living in London and claiming “British resident non-domiciled” status, but the Italian tax agency smelt a rat when Rossi asked for an internet connection to be installed in his hometown of Tavullia, in the Italian region of Marche. The paper trail led to the local marina where Rossi's 46ft yacht was moored. Eight cars were also found with insurance registered to Rossi or his companies.

Vincenzo Visco, Italy's junior finance minister, accused Rossi, who moved to London in 2000, of creating a “more or less fictitious” home in Mayfair. Rossi, one of the wealthiest sportsmen in Italy, paid only £629 in tax in Britain in 2001, the year he first won the MotoGP title. The Italian tax agency was outraged and initially demanded £80million.

Rossi's tax bill could rise to £26million when his earnings from 2005 and 2006 are taken into consideration. “I reached a fork in the road,” Rossi said. “I could have fought this but it would have taken a very long time. I'm much more serene now. Everything is much clearer and I can concentrate on my work.” That involves trying to win back the world title after two barren years with his Fiat Yamaha team.

Rossi, who will be 29 this week, added that he had decided to live in Italy again. “London is a very interesting city, but spending more time with my family and my friends has become of greater importance considering all my affairs around the world,” he said.

The maverick motorcyclist, with estimated yearly earnings of about £20million, is one of a series of high-profile Italian figures, including Fabio Capello, the England manager, whose affairs have come under scrutiny since Romano Prodi's administration took office and vowed to clamp down on tax evasion.

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