Dannyalliga
Lets just stay with the social tax or as it is called in the UK national insurance (NI).
You quote EC regulation 1008/2008 para 9 on page one, briefly it states that airlines should abide by the regulations with regard to social tax (NI). That far we agree on employment regulation !
What you don't seem to understand is that there are a number of ways for this to be done and as an employer who has staff in a number of EU states it can get complicated when someone starts work in one state and is resident in another, after all what call is a French national who lives in Perpignan going to have on the Spannish state if he starts and finished work in Gerona while having his home and family resident in France ?
For this reason the EU published article 16 of EC regulation 883/2004 that allows the social taxes ( both employee and employers contribution) to be paid in the EU state of residence NOT the state in which the employee is based. To enable this to be done the employee has to file a form A1 with the tax authority's in the state he is resident in. This is common practice in other industry's and my accountant has been using this EC regulation with regard to clients in the entertainment industry for some years, I can only think that because this practice is new to aviation your advisers are unaware of the wider application of these regulations.
From what you have said I can only conclude that it is you who need to seek advice from sorces that are well versed in international employment law as is clear that your advisers have taken a very parochial view to the EU regulations on the subject rather than taking an EU wide view of the subject.
You really should be of one mind with me on this after all this application of the rules results in the employee paying the social taxes in the EU state were he is going to get the benifits, do you really want to also have your social taxes paying for government administrators to shuffle the tax you have payed from the EU state you start work in to the EU state you live in just so that you can get the social benifits in your state if residence........ It seems to be that you are proposing a very expensive way to do business, and whats more it is you and I who will pay for it !
Last edited by A and C; 14th Dec 2012 at 09:31.