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Old 13th Oct 2009, 08:55
  #15 (permalink)  
Hasdrubal
 
Join Date: May 2009
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I can say with 110% confidence that the correspondence referred to in the Article does not exist.

I can say this with such confidence because the Irish tax office have told me that it does not and also that it never will. To issue such a letter or enter such an agreement the Irish tax office would have to confirm that the contractor was self employed and not an employee. By agreeing to this it would mean that the Irish tax office would never be able to pursue Ryanair and for that matter many other companies if they felt that the contractors were in fact only employees by anothe name.

The EU is not that well disposed to self employed contractors as they see them as exploited employees so the tax office will always be wary of this.

IALPA put pressure on the Irish tax office to force them to stop allowing Ryanair to employ pilots on a contract basis. The Irish tax office looked into the Ryaniar situation got referred on to BRK and told BRK to get their house in order and ensure that each and every contractor pilot was registered and paying tax.

The Irish Tax office, at the highest level, decided that for the moment they would let the contractor situation slide at Ryaniar, but they reserved the right to revisit the situation if they wanted.

The agreement that BRK have is that they have agreed to get their house in order. BRK and McNamara went to the tax office and explained their proposed solution. The tax office did not agree that this was the only allowable structure, what they probably told them was that they didn't particularlay care what sort of company they used, but just get the pilots registered.

Then BRK wrote to each of the contractor pilots requesting confirmation that they were registered for tax. You have to ask the question, why at this stage they did not roll out their "approved" arrangement.

What happened next is that BRK realsised that firms like CXC and McNamara might pay them a commisson for every pilot they sent their way. A self employed pilot is a valuble asset if you are charging them 3% of their income and also getting another few percent on any pensions that you sell them. So all of a sudden the McNamaras of this world are taking out 5% or 6% from each pilots income. Why wouldn't they throw a bit of that back BRK's way by way of thanks. It easy money for BRK.

However to ensure that the pilots don't "fly the nest egg" (forgive the pun) and start using an accountant of their own who will not be paying BRK commission BRK decide to start making it a condition of the contract that a self employed pilots have to use a tax advisor of BRK's choice.

Its a nasty little scheme that has been hatched and up to now any pilot not towing the line has been left in no doubt that failing to sign up with BRK's accountants will result in being taken off the roster.

I think with this in the newspapers it will force their hand a little. They will have to back up what they are claiming. Of course if they do have an agreement with the tax office then they should make it available on their website together with the legal opinion that have.

Its the least they can do. Its at times like these that you begrudgingly appreciate MOL and they way he operates more. BRK are tyring to be like him but I think have failed. At least when MOL decides to bully someone or he comes out with a statement it is very rare that someone can come out and correct him on his facts. BRK have tried to do the same thing here and it would apprear that their facts are not facts at all.

Time to call them out on this one.
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