Ryanair Rejects False Italian Tax Claims
Ryanair today (17 Oct) confirmed that it has complied, and continues to comply, with Irish and EU tax legislation in respect of its pilots and cabin crew, who 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).
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.
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 accordingly 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.
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 yesterday (16 Oct) are untrue and will be vigorously defended.
Similar actions against Ryanair in Belgium, Germany and Spain have been all unsuccessful with the courts ruling that Irish jurisdiction applied to Ryanair and its crews. The Italian authorities must respect these EU employment regulations which take precedence over inaccurate claims by local prosecutors in Italy.