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Italian Court Clears Ryanair Of Social Security Non-Payment

by Ulrika Lomas, Tax-News.com, Brussels

05 April 2016


An Italian court has ruled that aircrew members resident in Italy with employment contracts from Ryanair in Ireland do not have to pay social security contributions in Italy.

In the opinion of INPS (the Italian social security institute), Ryanair's pilots and cabin personnel who live in Italy and use, for example, its public health services, should make Italian social security payments. In the court case, dating back to October 2012, INPS claimed an amount of EUR9.4m (USD10.7m) for such payments in the years from 2006 to 2010.

However, Ryanair pointed out that, in addition to having Irish contracts, its aircrew were employed in Irish aircraft. The company maintained that they were therefore subject to both individual income tax and social security contributions only in Ireland.

The court in Bergamo agreed that the place of work of an aircraft crew is the registered aircraft on which they perform their duties. It found that the social security contributions of those Ryanair employees had been regularly paid in Ireland and should not also be payable in Italy.

Ryanair's Head of Communications, Robin Kiely, said the court's decision has "confirmed once more that Ryanair fully respects Irish and European law. … Ryanair is an airline company registered in Ireland, and our pilots and cabin employees work in aircraft registered in Ireland that are considered as Irish territory under the regulations governing transport workers in the EU."

TAGS: individuals | court | compliance | tax | business | tax compliance | Ireland | law | aviation | employees | social security | Italy | regulation | European Union (EU) | Communications | Europe

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