French court orders Ryanair to pay multi-million pound fine

Friday, 03 Oct, 2013 0

Ryanair has been fined €8 million by a French court for non-payment of social insurance and state pension contributions in France.

The court in Aix En Provence dismissed Ryanair’s claim that crews flying to and from Marseille between 2007 and 2010 should pay tax in Ireland instead of France as they employed on Irish contracts and operating on Irish registered aircraft.

Ryanair argued they had already paid their taxes, social taxes and state pension contributions in Ireland in compliance with Irish and EU regulations.

The airline said it will appeal the ruling. If it fails to get the ruling overturned it said the "vast majorty" of the contributions will be reclaimable from the Irish Government.

"Ryanair will study today’s ruling in detail, and will be lodging an early appeal," said a spokesman.

"Since all of our people operating to/from Marseille between 2007 and 2010 have already paid their social taxes and pension contributions in Ireland, in full compliance with Irish and EU employment regulations, we do not believe that either Ryanair or our people can be forced to double pay these contributions a second time in France.

"In the meantime, Ryanair and its people will continue to comply fully with Irish and EU employment law, income taxes and social tax obligations."



 

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Linsey McNeill

Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk



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