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German tax officials search Ryanair

ryanair12Ryanair offices at six German airports were raided by police on Wednesday as part of an investigation into tax evasion and unfair working practices.

Staff rooms at airports in Berlin, Cologne-Bonn, Frankfurt-Hahn, Bremen, Baden-Baden and Weeze were targeted, according to German media. Computers and iPads were seized along with personal documents of pilots.

The office of the Koblenz state prosecutor and local customs agents were involved.

The investigation appears to centre around two personnel firms which are responsible for contracting pilots for Ryanair. Such companies are used by a number of discount carriers to manage pilots under contract without the carriers having to pay national insurance contributions.

As part of the business model, the pilots are effectively self-emplopyed freelance workers. German law, however, holds that working for just one company means that the person is an employee of that company rather than self-employed.

Investigators at the airports were reported to have been questioning pilots about the frequency of flying hours with Ryanair and other airlines as well as any employment contracts.

Ryanair said it was assisting German tax authorities with an inquiry into the number of contractor pilots it uses. It also said that Ryanair itself was not the subject of any tax investigation.

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