Ireland seeks tax payment from three airlines

Dino D'Amore
By Dino D'Amore November 18, 2013 20:46

Ireland seeks tax payment from three airlines

The Irish Government is seeking €19 million in travel tax from Ryanair (€12m), Aer Lingus (€4m) and Aer Arann (€3m). Even though the Minister for Finance Michael Noonan announced in the budget that the Government plans to drop the controversial €3 per passenger charge from next April, it is still pursuing these airlines in the courts for the tax it is due as a result following a European Court of Justice (ECJ) ruling last year.

However the airlines are opposing the payment demand. Although Ryanair argued successfully at the ECJ that was an illegal state aid, as the lower charge favoured flights within the Republic and discriminated against virtually all other routes. Ryanair’s claim was upheld, and the ECJ ordered the Government had to collect the difference between the €2 charge and €10 from all the airlines that benefitted. But the airlines don’t believe they have to pay this, leading to legal action by the government. Aer Lingus has launched a counter-suit of its own, demanding a refund of the refund of the difference between the two that it paid on longer routes.

Dino D'Amore
By Dino D'Amore November 18, 2013 20:46
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