Ryanair to defend tax dodging claims
Ryanair issued a statement today insisting that it is not guilty of tax evasion in Italy despite claims by prosecutors in Bergamo that it owes the country €12m.
The airline said that under Irish and EU law it was permitted to pay staff recruited in Bergamo in Ireland rather than in Italy where taxes and social security payments are much higher.
"All Ryanair’s pilots and cabin crew operate on Irish aircraft and fully comply with EU tax payments and rules," it said. "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."
Italian prosecutors told the media yesterday (see earlier story here) they were proposing to bring charges against Ryanair boss Michael O’Leary and the airline’s legal advisor Juliusz Komorek for failing to pay social security payments for 220 staff recruited at Bergamo in Italy.
Ryanair said that under new rules introduced in June this year, new Ryanair recruits will pay their social taxes in the country where they start and end their working day and will no longer pay social taxes in Ireland.
However, it said that undger ‘grandfather rules’, existing employees are allowed to continue to be taxed in Ireland.
Spokesman 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 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."
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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