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Comprehensive briefing on tax developments available

Homes of Ryanair pilots and bases of the airline were raided in July by German tax authorities and prosecutors, as part of an ongoing investigation into two UK-based contract personnel agencies - Brookfield Aviation and McGinley Aviation. Both agencies supply “self-employed” pilots for Ryanair. While this model may (or may not) be legal in Ireland, it is largely considered by authorities in Germany as being potentially bogus self-employment.

Based on an examination of the actual day-to-day operations of pilots and the degree of control and direction, which the airline exercises over them, the ‘self-employment’ status is under considerable doubt. The Prosecutor’s search warrant has accused the pilots of intentionally creating a fraudulent tax scheme together with various partners. And Ryanair’s business model seems to be a central focus of the investigation, including whether the airline was reducing its tax and social insurance bills by not directly employing pilots. (Source : NewsTalk)

ECA together with Ryanair Pilot Group (RPG) and Vereinigung Cockpit (VC) has warned over the years about the multiple hazards related to such ambiguous employment structures. But confronted with the choice of “self-employment” or no employment, many might have become unwilling partners in such schemes. While the present investigation is limited to Germany it cannot be excluded that other authorities will follow the German lead and start investigations of pilots based in their countries.

The RPG and VC have provided guidance and advice to pilots about registering for social insurance in Germany. The same advice has been provided to all RPG members, no matter what country they are based in. Recent developments in Germany clearly indicate that ignoring these issues will not make them go away. Direct action is therefore required by every individual pilot to be fully aware yourselves now and to protect yourselves for the future, wherever you are based.

This I why, Vereinigung Cockpit, representing German Pilots, has acted swiftly providing a comprehensive briefing for the affected pilots. Anyone confronted with that situation is invited to download & share it with his/her colleagues.

The RPG is also assisting Ryanair pilots with information, advice and documents. Please visit the dedicated website, launched in light of supporting pilots on this matter: http://www.rpgtaxcampaigns.info/