Ryanair targeted by Italian tax police (GdF): evasion for 35

Rome, Italy - The military has complained the company missed charges for 2005-2009 years

(WAPA) - 350 million euros of revenues not declared to Italian tax service from 2005 to 2009. This is the accusatory hypothesis moved to low-cost carrier Ryanair by Guardia di Finanza ("Guard of Finance", Italian tax police). Under the lens of the military - who is investigating for months the Irish carrier - revenues that relate to domestic flights operated by the company.

The "Financiers", after being extricated from the jungle of international conventions, now believe they have found several confirmations that identify a "Permanent establishment" of Ryanair in Italy. Starting from ten operating bases in airports of Ciampino, Orio al Serio, Alghero, Brindisi, Bari, Bologna, Cagliari, Pescara, Pisa and Trapani. On these bases work - according to the findings of the military - about 400 employees including pilots, flight and ground attendants. A number that have financial support to the organizational structure - though not formally constituted - has these and many men and means on Italian territory to configure, in fact, as a business group.

The hypothesis of GdF of the company - although the head office is in Dublin - having a stable set in Italy, would justify the taxation of income on the Italian territory. Otherwise, the Irish carrier defends itself by claiming to manage all of its turnover from Ireland, without a legal connection in Italy. The case will be matter for lawyers, now, whereas the Italy-Ireland Convention of 1971 provides that, under the Italian tax system were only income derived from domestic flight, while international ones are taxed according to the regulations of countries of origin of the carrier. (Avionews)
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This doesn't make much sense because it's a literal translation, but the answer is - All Ryanair aircraft are Irish registered, and therefore are Irish territory. Anyone who works on a Ryanair aircraft (cabin crew or pilot) is technically working in Ireland, and so, pays Irish taxes and is paid via an Irish bank account.

yes but FR inherits the italian VAT on online check in costs, priority or whatever...So where went that money? You pay that BEFORE boarding and so entering irish territory

j2op wrote:yes but FR inherits the italian VAT on online check in costs, priority or whatever...So where went that money? You pay that BEFORE boarding and so entering irish territory

Nope... all charges are with irish VAT...

Nope, just try to simulate

I confirm that, for internal italian flights, Ryanair applies 20% Italian VAT to fares and fees.
But I think that the point is somewhat more complicated here and I think that anyone here can tell who is right..

In my opinion it is quite simple: Why am I supposed to pay 20% more vat on italian domestic flights if vat is paid in Ireland? They told us it was a pure italian tax, but now it seems being else.

Hmm... It seems very strange to me, so they applied italian VAT and didn't pay it in Italy? If it was so, they were pretty stupid, and I don't think that italian tax police would have taken four years to realize this... I thought that the point was on something else (don't know what), but if it is as you say, then probably they will have some problems...

bluewaves wrote:I don't think that italian tax police would have taken four years to realize this...

you think? I am sorry but this IS possible here in Italy...Ask Silvio how he could be premier while he was prosecuted for corrupting the GdF (yes the same tax police)


I don't think it is only the vat. Sure is that I pay since the check-in online fee 20% more on taxes, 20% they claimed it was just taxes.
Actually for domestic flights in Spain this doesn't happen.