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Avoiding Social Security payments.

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Old 14th Apr 2016, 15:38
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Avoiding Social Security payments.

Germany trafficking: Mass police raid on Berlin mega-brothel - BBC News

"Prosecutors allege that staff at Artemis were forced to pretend to be self-employed to avoid the payments".

Can anyone think of similar circumstances in our industry?
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Old 14th Apr 2016, 18:11
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Funny, I was thinking exactly the same when I posted the article on Facebook. Seems the German Govt has realised that it needs more loot to pay for all those "migrants" it has welcomed with such open arms.

Even the oldest profession is not out of their reach, so , what chance for simple airframe drivers ?
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Old 14th Apr 2016, 18:50
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I listened to Mr. J Corbyn expanding the benefits that EU membership has brought to UK workers. One aspect mentioned was the employment protection & rights now granted to agency workers. Could that be why certain airlines have insisted that pilots set up Ltd. self-employed organisations so that the 'agency' is not liable for those workers' protection & rights? Cynical? Damn right.
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Old 14th Apr 2016, 23:51
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Well - nearly everyone in the industry is using some contracts like that if you are nowadays still stupid enough to go for it. Especially the UK and Ireland are still encouraging this kind of system hence you are working for only one company, so you are actually an employee(no arguing about that - if you work for ONE employer then you are an employee).

My old outfit, one of the so called(by themself) market leader in biz aviation is offering this kind of fraud contracts as well. It will need a big effort by union and local authorities to stop this mass fraud. It is as simple as that.

@Rat: Not the union is encouraging that, it is the countries by themself. In mainland Europe it is not possible to do this kind of setup because the authorities would not accept your explaination. So I think the UK is responsible for that by having the wrong laws. Not the EU. But soon that will be over, you will be free again and everything will be perfect. Cynical? Damn right as well. Bye bye.
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Old 15th Apr 2016, 06:40
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I don't think that you are selfemployed with NAS . Dunno how it's done at Wizz. I think there is a significant difference between the RYR model where you set up a limited company in Eire and NAS model where you are employed by a OSM. Still, best would be to have a direct contract to the airline itself.
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Old 15th Apr 2016, 10:23
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Syntax - but this are all deals that are very close to the border between "black and white", wouldn't you agree. Just because they are doing it right now does not mean it would hold in front of a high court once it comes to that.

There are deals out there, but if you go for something like that you must be aware that it is not anymore the 80's or 90's where it was so easy to earn money tax free.
Nowadays you are with one foot in the jail if doing that. That's what I ment and that's how it is.
Just think of Germany and Austria, even Italy searching and buying stolen data to track down tax refugees.
And having a limited company and being an employee is just an other type of fraud which will expire soon. Really someone disagrees on this facts? Europe needs money, guess what's the easiest way to get some.
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Old 15th Apr 2016, 12:32
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Sorry tomuchwork. Can you tell me one UK airline that is employing pilots on a self employed basis please. RYR are Eire.
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Old 15th Apr 2016, 14:23
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Big 5 EU finance ministers are meeting to make laws for companies to open up their true tax status to ensure all correct taxes are paid and no 'under the radar' constructions are in use. Surely that spotlight would apply to non-payment of employer premiums e.g. social security, pension, social insurance payments as much as tax. It would appear that their attention should also be paid to any Ltd company so-called self-employed construction whereby employer payments are avoided.
This was done inside the UK civil service whereby it was found that some senior mandarins and made such a construction, but with only HMG as their customer. It was deemed illegal, a tax avoidance scheme, and stopped. What's the difference?
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Old 15th Apr 2016, 19:45
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In the UK you need a National Insurance Number to work, either employed or self employed just different levels of contribution. This tax just allows access to the basic services, healthcare etc.. it is NOT THE SAME AS INCOME TAX ON SALARY...doesn't matter whom you work for, what sort of scheme, you need the NI number. I know of no airlines where staff don't have NI Numbers...The "oldest profession" is a different matter, these " workers" probably don't even " exist" in the records, cam in strapped to a pallet or cargo
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Old 16th Apr 2016, 12:06
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Ryanair has been and still is using UK based agencies to setup their very questionable pay-per-hour ltd's that place pilots predominantly in continental Europe where they live and work under a totally borderline tax&social status.

These setups are poisoning and distorting the market causing great damage mainly to the airlines that have to compete with such medieval employment methods.

The main victims are of course the more local and less cash-rich airlines of sounthern Europe where in less than a decade competition has been virtually eliminated and their airports are full of blue/yellow 737's with their contracted crews.
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Old 17th Apr 2016, 11:35
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Pilots employed by agencies are the same, they are usually employed with a contract in a country were they don't have to pay social security but are based in other countries, like Germany. My company does it for a few, contract pilots based in Germany not paying social security.
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Old 18th Apr 2016, 14:06
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It seems that prostitutes and low cost airline pilots have a lot in common.
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Old 19th Apr 2016, 17:43
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Anyone else seen this? They were talking about it on BBC breakfast today but seems to have been going on for a little while.

Bike couriers launch test cases in battle to boost ?meagre? pay | Transport | News | London Evening Standard
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Old 20th Apr 2016, 20:55
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You are forgetting that Switzerland is not EU and they make their own tax deals as they like...
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Old 30th Apr 2016, 20:48
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It would seem that Avion Express, Small Planet and Smart Lynx could well be on dodgy ground too then.
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Old 14th May 2016, 07:44
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Aceypilot, this is exactly the attitude we must have and this is what we must teach to all the newcomers to our profession.

If we start respecting ourselves we might start getting respect from the companies too.
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Old 18th May 2016, 17:32
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http://www.pprune.org/attachment.php...1&d=1463592693



For the avoidance of doubt, the correspondence shown here was received recently by pilots based in Germany using a well known "intermediary".

It is not to be construed as comment, criticism, neither accusation nor judgement on my part, and is reproduced here merely to keep interested parties updated on a developing situation.
Attached Images
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Old 18th May 2016, 19:08
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Brookfield Aviation International Limited`s accounts for year ended 31 January 2015, filed at Companies House show:

Principle Activities : Provision of air crew services to the aviation industry.
£
Sales 119,106,108
Purchases 117,562,666

Gross Profit 1,643,442

So their business is to buy and sell air crew services. They have bought it for £117562666 and sold it for £119106108. Bit like buying bunches of bananas, wrapping them up in blue uniforms, sticking shiny little wings on the breast pockets and flogging them off to the various airlines.

As the wages excluding the directors are only £176,497, the payments described as purchases are not salaries/wages to air crew.

Now I don`t suppose any taxman is going to be happy sitting in the back of one of these planes with some kind of a bloke resembling a banana wrapped up in blue tissue, as the pilot of the aircraft taking him to a G20 meeting to squash tax dodging.
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Old 25th May 2016, 20:58
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captplaystation: The documents you posted make a definite statement. The letter head is missing for authentication. Are you suggesting that there is an ongoing investigation by the German tax authorities into the MD of Brookfield I.A? Who is named in that investigation? What is the status of it? If the investigation is true what action is being made by RYR regarding it's pilots on BRK contracts? Are any new pilots being recruited via BRK? This disclosure raises many questions for which there must be interesting answers.
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Old 25th May 2016, 21:49
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RAT The public prosecution in Koblenz is leading those investigations. They investigate against pilots and the contractor.
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