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Ryanair rejects 'false' Italian tax claims

It is claimed that the company hadn’t paid €12 million it owed in tax in Italy.

RYANAIR HAS REJECTED what it calls ‘false’ Italian tax claims.

It released a statement saying that it has complied, and continues to comply, with Irish and EU tax legislation in respect of its pilots and cabin crew. It says these staff members:

are covered by EU regulations applicable to mobile transport workers in respect of their employment, which takes place on Irish registered aircraft (which is defined under EU rules as Irish territory).

Ryanair added:

All Ryanair’s pilots and cabin crew operate on Irish aircraft and fully comply with EU tax payments and rules.  They are paid in Ireland and pay their taxes and social taxes in Ireland under these EU regulations.  These people work in Ireland and not in Italy.

The Irish Examiner reports that the company is being investigated in Italy over allegations that it did not pay around €12 million of social security payments on employees based in Bergamo. It says that a civil court hearing is due to take place in February 2013.

New rules

The company said that under new rules introduced in June 2012, new Ryanair recruits will in future pay their social taxes in the country where they start and end their working day, and will no longer pay social taxes in Ireland.

Existing employees will continue, under grandfather rules, to correctly pay their taxes and social taxes in Ireland which fully complies with EU legislation, said Ryanair.

Ryanair’s Stephen McNamara said:

Since Ryanair, and our people who fly Irish aircraft to/from Italy, are fully compliant with EU legislation governing income taxes and social taxes, the claims of ‘social tax avoidance’ made by the Bergamo prosecutor’s office on 16 October are untrue and will be vigorously defended.

He added that similar actions against Ryanair in Belgium, Germany and Spain have been all unsuccessful.

Read: Stansted owner says it won’t allow Ryanair to buy the airport>

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    Mute Sheila Walsh
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    Nov 13th 2012, 5:05 PM

    the tanaiste would rather have another referendum than worry about the students many of whom have had to give up their education because of this useless government

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    Mute Mark Ryan
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    Nov 13th 2012, 5:43 PM

    Marriage referendum is hugely important and long overdue. far too important for you to just gloss over as you just have.

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    Mute Jack Daniels
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    Nov 13th 2012, 5:00 PM

    Education is not a priority for this Government might help to keep people slightly uneducated so that we can get good cheap labour out of them in future years.Labour how fitting eh.

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    Mute Frances Kawala
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    Nov 13th 2012, 6:01 PM

    Who are these people – the 34% who save regularly? . . . while most of us can’t afford to live.

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    Mute Christine Downey
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    Nov 13th 2012, 5:55 PM

    6.01 news

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    Mute Patrice Bedford
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    Nov 13th 2012, 7:20 PM

    7.01 on +1

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    Mute Christine Downey
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    Nov 13th 2012, 5:54 PM

    Erm… pardon me, but RTE had a bit on the 5.01 news yesterday about the Scott medals being awarded. Are there two lots?

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