Originally Posted by
er340790
McDoo is correct. Also tax authorities can take action where the 'substance' of a transaction overrides its 'legal form'. In other words, if the clear intention of the airline is for these pilots to be de-facto employees of Ryanair, then just relying on an agency-employment technicality is no defence.
The sad thing is: any pilot who does not derive flying employment income elsewhere will be on very thin ice in this tax investigation. Usually though, it is the 'deepest-pockets' the tax authorities go after first... i.e. Ryanair in this case. Why chase dozens of individuals who may be unable to repay any tax owed and are highly mobile in their employment anyway, when you can just go after one big fat legal entity?
It will all end in tears. These things usually do.
The tax laws are significantly different in each country. In UK the individual is the one the tax authorities will charge with evasion. In other countries, for example the US, the large company with 'pretend' contractors will be charged with evasion. Presumably, there are countries where both parties are charged.