Tax chief: “It is serious if the airlines are doing it on purpose”
Norwegian tax officials have begun an investigation into alleged tax evasion by pilots and cabin crew employed by the airlines Norwegian and Ryanair. The tax authorities in Skatt Øst, eastern Norway, will look into an arrangement where Norwegian citizens working out of Norwegian airports rent out their services to the airlines via foreign companies based in tax havens. Even though the pilots and crew are resident in Norway, they are in effect claiming residency abroad. They risk severe taxes as fines or may even be imprisoned.
“This is serious,” Skatt Øst tax chief Jan-Egil Kristiansen told the newspaper Dagens Næringsliv. “It undermines the tax base and is especially serious if the airlines are doing it on purpose.”
Ryanair has so far nor responded to the launch of the investigation, but Norwegian commented that it assumed its contracted workers were paying their taxes to the right countries.
[photo courtesy Norwegian]