Ryanair staff in tax dodge probe
German authorities investigate four staff but airline is not under any suspicion
FOUR Ryanair employees in Ireland are being investigated on suspicion of inciting tax evasion in Germany.
The investigation is part of a lengthy probe by German authorities into the tax and employment position of pilots working in the country for Ryanair under third-party contracts.
The German prosecutor’s office in Koblenz confirmed that four directly employed Ryanair staff members remain under investigation, and that the probe will continue for some time. It has now also emerged these staff are based in Ireland.
Last year, six Ryanair bases in Germany were raided on suspicion of evasion of income taxes and social security payments by pilots flying the airline’s aircraft.
Ryanair itself is not suspected of any wrongdoing by German authorities. It has agreed to help German tax authorities as they investigate contract pilots.
Meanwhile, Ryanair releases results for the first half of its financial year this morning. Chief executive Michael O’Leary is certain to update analysts and investors following the flights cancellations debacle.
FOUR Ryanair employees in Ireland are being investigated on suspicion of inciting tax evasion in Germany.
The investigation is part of a lengthy probe by German authorities into the tax and employment position of pilots working in the country for Ryanair under third-party contracts.
Many of Ryanair’s 12,000 pilots and cabin crew work at the airline on a contract basis, rather than being directly employed by the company.
The German prosecutor’s office in Koblenz confirmed that four directly employed Ryanair staff members remain under investigation, and that the probe will continue for some time. It also emerged these staff are based in Ireland. The probe is connected to an investigation by the prosecutor’s office in Koblenz that intensified last year, when six Ryanair bases in Germany were raided on suspicion of systematic evasion of income taxes and social security payments by pilots flying the airline’s aircraft. Some pilot homes were also searched, and electronic equipment and documentation were seized.
The prosecutors in Koblenz said at the time that the raids were part of a probe into two UK firms that provide contract staff to Ryanair. Pilots sourced by the agencies work with the airline on a self-employed basis.
The firms were accused by the authorities of withholding pilot salaries and taxes. Some pilots were accused of failing to make sufficient social welfare contributions.
“We have finished our investigations against the persons responsible for the recruitment agencies and against the pilots,” said a spokesman for the Staatsanwaltschaft, or public prosecutor’s office, in Koblenz.
He added that under German law, the people investigated must be informed first of the outcome of a probe, and that that could take some time.
Once an investigation is com- plete, the prosecutor’s office decides whether a case should be dismissed or go to court.
He confirmed that four Ryanair employees remain under investigation on “suspicion of incitement” to commit tax evasion.
“Under German law, I am not entitled to inform you of which position these persons hold as that might enable you to identify them,” he added.
“According to our current knowledge, the four Ryanair employees being investigated are based in Ireland.”
He added: “The four employees at Ryanair who are being investigated are direct employees of Ryanair. They are not employees of contract firms and they are not pilots.”
Ryanair said that it does not comment on “rumours and speculation”.
The spokesman for the Koblenz prosecutor’s office said that under German law, criminal investigations cannot be undertaken against companies, only against individuals.
Ryanair had confirmed last year that it had agreed to assist German tax authorities as they investigated contract Ryanair pilots. “Ryanair requires all of its pilots, both directly employed and contractor, to be fully tax compliant at all times,” it said at the time.
“The German tax authorities have confirmed that Ryanair is not the subject of any tax investigations.”
Ryanair releases results for the first half of its financial year this morning.
Chief executive Michael O’Leary is certain to update analysts and investors on on-going efforts to secure fresh pay agreements with pilots following a rostering meltdown that saw the airline ground thousands of flights. Ryanair has been trying to seal fresh pay deals with pilots, but pilots at some of its biggest bases – including London Stansted – have rejected the proposals.
The airline has been under heavy fire since it announced last month that 2,100 flights would be cancelled in September and October – up to 50 a day.
It recently said 98pc of customers impacted by flight cancellations have been refunded or transferred on to other flights.