Ryanair caught up in tax row

[Andromachus]

The Sunday Times has confirmed my posts on this board relating to widespread tax evasion by Ryanair pilots - and verified my previous warnings that the Revenue were carrying out an investigation into the practice.

Ryanair are now attempting to deny their direct and complicit involvement in the scam in a typically craven manner - as I will demonstrate (all italic comments are mine).

Ryanair caught up in tax row
[SIZE="2"]Sunday Times Oct 11th[/SIZE]
UP TO 100 Ryanair pilots have been put on protective notice by Brookfield Aviation, the British contract company that pays them, and told they must sign up to new employment terms to satisfy the Revenue, writes Tom Lyons.
The Revenue is understood to have raised issues about whether the pilots are effectively Ryanair employees. As such, Ryanair would have to pay millions of euros in extra taxes annually. [They certainly are Ryanair employees, because Brookfield is a wholly owned Ryanair subsidiary, and they are hired by Brookfield to fly for Ryanair!]

"Brookfield is a third-party company supplier of aircraft crew to a number of airlines including Ryanair," the airline said. "This is a matter for Brookfield and their people, not Ryanair." [A bare faced lie, given Brookfields status]

Brookfield has told pilots that on legal advice, and after consulting the Revenue, it wants to implement a new contract structure drawn up by the Dublin tax consultants McNamara and Associates. Under this structure, groups of pilots would become directors of companies set up by McNamara and Associates and contracted to Brookfield.
[This is the tax evasion method I related to in previous posts on another thread on this Forum - already in use by many Ryanair pilots. Only now Ryanair/Brookfield are forcing the scam on all the pilots.]

Pilots have asked Brook-field to provide a written copy of the agreement the agency says it has reached with the Revenue. Brook-field declined to say why it has not done so.
[It hasn't done so because it is designed to cover Ryanairs ar5e, to the cost of the individual pilots.]

Some of the pilots have provided tax-clearance certificates to Brookfield. They have also told Brookfield they are unclear why they must now become directors of companies set up by McNamara and Associates.
[Because their individual arrangements do not provide the blanket ar5e cover Ryanair requires to continue avoiding paying tax in this country.]

Pilots have been told they must sign up to new contracts if they wish to continue working for Brookfield after January 9, 2010. Pilots will be sent their new contracts this week.
[In short - become complicit in our new improved tax evasion scam, or take a hike.]

This is just one of the ways Ryanair has driven down 'costs' and wages. Low wages in Ryanair are subsidised by the Irish Taxpayer, and Tax compliant airlines and pilots who must compete with this are being forced out of work and out of business.

There are other Ryanair tax avoidance scams in operation, like their shelf company in tax haven Cyprus, which is used to buy and 'leaseback' their own aircraft. It is sickening they are allowed continue.
At least this one has now been exposed to public view. Well done Mr.Lyons and the Sunday Times!

[Andromachus]

No reaction from the Ryanair trolls!
This ain't going away boys!

[Cassandra Syndrome]

At last the Revenue chase the real culprits and leave the small people alone for a change.

[Fish]

No reaction from the Ryanair trolls!
This ain't going away boys!

Indeed!

What's more why are all the generation yes people that defended O'Leary in the not too distance past pre Lisbon, not running to his defence here?

Go on, do remind us again as to his business credentials and integrity and while your at it do try and square that off against his motivation for advocating a yes!

[cinik]

Indeed!

What's more why are all the generation yes people that defended O'Leary in the not too distance past pre Lisbon, not running to his defence here?

Go on, do remind us again as to his business credentials and integrity and while your at it do try and square that off against his motivation for advocating a yes!

Well that will be a short defence. None.
o'leery has about as much moral or ethical credibility as a certain person hawking his rewritten
history around Dublin on Saturday last.
He must be piss1ng himself laughing at the ordinary Irish taxpayers subsidising his rotten enterprise.

[Mr.B]

Brookfield is not a wholly owned subsidary of Ryanair. If it was then it would need to be disclosed in its annual return, which it isnt. Also if it was wholly owned then there would be no tax advantage to the agency agrrement as Ryanair would have to consolidate them into their holdings financials and would have to pay all the employment related taxes at a Brookfield level

[orbit]

Brookfield is not a wholly owned subsidary of Ryanair. If it was then it would need to be disclosed in its annual return, which it isnt. Also if it was wholly owned then there would be no tax advantage to the agency agrrement as Ryanair would have to consolidate them into their holdings financials and would have to pay all the employment related taxes at a Brookfield level

The bottom line as far as I'm concerned is. Do the pilots work exclusively for Ryanair, or to such an extent, as they practically do? If the revenue can sort this question out for plumbers, brick-layers and carpenters, then I don't see the problem doing it for pilots.

[Mr.B]

The bottom line as far as I'm concerned is. Do the pilots work exclusively for Ryanair, or to such an extent, as they practically do? If the revenue can sort this question out for plumbers, brick-layers and carpenters, then I don't see the problem doing it for pilots.

I don't disagree. Like many business they are obviously using 3rd party agencies to limit employment taxes/pension and other employment related costs. Lots of businesses at it and its an area that the revenue are cracking down on across the board...rightly so In my opinion. I was just correcting the incorrect statement that the agency was a wholly owned subsidary. As for the other incorrect statements about sale lease back transactions these were already discussed and disproven on an older thread

[hammer]

Were the Revenue asleep ?

Why did it take so long to investigate this ?

Is Brookfield an Irish Registered Company ?

[ballot stuffer]

The Sunday Times has confirmed my posts on this board relating to widespread tax evasion by Ryanair pilots - and verified my previous warnings that the Revenue were carrying out an investigation into the practice.

Ryanair are now attempting to deny their direct and complicit involvement in the scam in a typically craven manner - as I will demonstrate (all italic comments are mine).



This is just one of the ways Ryanair has driven down 'costs' and wages. Low wages in Ryanair are subsidised by the Irish Taxpayer, and Tax compliant airlines and pilots who must compete with this are being forced out of work and out of business.

There are other Ryanair tax avoidance scams in operation, like their shelf company in tax haven Cyprus, which is used to buy and 'leaseback' their own aircraft. It is sickening they are allowed continue.
At least this one has now been exposed to public view. Well done Mr.Lyons and the Sunday Times!

There is nothing wrong with avoiding tax apart from the debatable moral responsibility.

If they were found to be evading tax thats when the problems arise.

All companies try to avoid tax, revenue tries to maximize its tax take. That is the realties of business. Its a game of leapfrog between them.
Often tax avoidance schemes sail quite close to the wind legal wise and revenue might decide that they are trying to evade tax.

Of course in this case it is evil Ryanair screwing the government..