Ryanair is to pursue the French authorities for €15 million after it accused the state of threatening and blackmailing it into paying a "double tax".
The dispute centred on the social insurance of workers abroad, for which the Irish Republic issues A1 certificates to confirm workers’ status. Up to now France refused to accept the certificates, forcing the airline to pay additional funds.
The ruling in the European Court of Justice on Thursday determined that the certificates must be accepted by all EU states.
In a statement, Ryanair said it would pursue a “full refund” of the funds it has paid in “double taxes” to the French state from 2006 to 2010.
“The French social insurance authorities have acted unlawfully over the past 10 years by double charging Ryanair and its people, who were based temporarily in Marseille, but who had already fully paid their social insurance in Ireland in accordance with EU regulations.”
A similar double tax situation also exists in Italy where there are several outstanding claims from 2006 to 2011 being pursued by the Italian authorities. Ryanair said it would be writing to the authorities there seeking the withdrawal of those claims.
Full refund
Ryanair chief people officer Eddie Wilson said the ruling "exposes the unlawful attempt by the French authorities, to threaten and blackmail Ryanair".
“Ryanair will now be pursuing a full refund of €15 million from the French authorities who have repeatedly and unlawfully pursued Ryanair, its pilots and cabin crew in Marseille by ignoring EU regulations and the validly-issued Irish A1 certificates.
"We will also be pursuing the French authorities for interest on these payments which were demanded illegally by the French authorities who were aware of, but ignored, both EU rules and the Irish A1 certificates despite being warned by the European Commission that they cannot do so.
“We expect the French authorities will now process these refunds expeditiously given that their attempts to force Ryanair to double pay social insurance in breach of EU rules have now been struck down by this very welcome ECJ ruling.”
