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Ryanair Claims 'Peculiar' Irish Tax Provision Could Cost It €5m Per Year

Published on Dec 19 2018 11:59 AM in General Industry tagged: Ryanair

Ryanair Claims 'Peculiar' Irish Tax Provision Could Cost It €5m Per Year

Ryanair has claimed that it could lose €5 million a year due to a "peculiar" Irish taxation provision that means the airline's non-Ireland-based employees are effectively taxed on the double.

According to The Irish Times, the claims are made in Ryanair High Court action against the minister for finance and revenue seeking the striking down of the taxation provision, section 127B of the Taxes Consolidation Act 1997, which the airline says is contrary to EU law.

Section 127B

Section 127B makes the income of any individual “whether resident in the State or not” taxable from any employment aboard an aircraft and where the aircraft is operated by an enterprise whose management is in this State.

Ryanair asserts that section 127B is contrary to normal international principles and is a "peculiarity" of Ireland's system. The airline also said that section 127B is discriminatory and conflicts with equal treatment rights under the Treaty on the Functioning of the EU.

© 2018 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.

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