News: Ryanair faces French tax investigation
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Flights > News > # 2476 (05/05/2010)
Ryanair is under investigation for allegedly evading up to €4.5m (£3.9m) in payroll taxes in France.
The airline is suspected of employing 120 people in France on Irish contracts.
Under EU law, this is permitted only for short periods or if the employee genuinely works in more than one country.
French officials, who recently raided Ryanair's offices at Marseilles airport, suspect that the Dublin-based airline employs 120 people full-time in France, including 30 pilots, but pays their social charges in Ireland.
French social security and other payroll taxes are up to three times higher than in Ireland and fall especially hard on the employer. By employing French-based staff on Irish contracts, Ryanair is accused of gaining an unfair competitive advantage and, in effect, cheating the French government.
A formal investigation has now been launched against Ryanair by the public prosecutor in the Aix-en-Provence region, which covers Marseilles airport.
The airline said it had not been told about the investigation and could not comment. French judicial authorities are expected to seek an international warrant to question senior Ryanair executives in Dublin.
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