Ryanair tax scam exposed.
ROI Sunday Times Business Section, 11-10-09. Front page item.
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.
"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."
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.
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.
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.
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.
Can anyone point me at documentation showing the link between Ryanair and Brookfield?
I understand it to be a wholly owned subsidiary - just looking for a link to prove it now.