PPRuNe Forums - View Single Post - Ryanair to pay €10 million in French labour law case
Old 4th Oct 2013, 18:46
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Facelookbovvered
 
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I'm inclined to agree with Racedo I'm really not sure that FR have done anything illegal here, whilst the whole employment set up for pilots (service providers) is bizarre and there is little doubt it has saved FR millions in social taxes and i suspect this ruling will be over turned on appeal. It may look like aggressive tax avoidance to some, but just like Starbucks & Amazon, very large multi national companies can pick and choose where to base their assets and where to pay their taxes.

Ultimately the authorities will have to go after the little fella's ie the groups of pilots set up as ltd companies, drawing a small salary and paying the resultant profit out in dividends, which attract a lower rate of tax and I believe are not liable for national or social insurances payments on such dividends.

They will investigate to see if these companies are genuine trading companies with proper accounts, board meeting and so on, or are just "shell" companies set up with the primary aim of reducing or avoiding tax and i think FR are far more vulnerable on that front, but of course they have Brookfield for a fire wall first.

Not a chance of them impounding Ryanair aircraft either
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