Aer Lingus reaches €29.5m Revenue deal over 'leave and return' scheme
Aer Lingus has reached a final settlement with the Revenue Commissioners over its controversial 2008 'leave and return' scheme that will see the airline pay out €29.5m, or €3m less than it previously anticipated the figure might be.
Last week, Aer Lingus said it had made a €32.5m provision to make a settlement with the taxman over the redundancy scheme that saw 715 staff leave the airline and then rehired under new terms and conditions. However, yesterday the carrier said that the final settlement is now slightly less than had been envisaged.
Aer Lingus said it had received advice in 2008 that the scheme would be acceptable to the Revenue Commissioners and the Department of Enterprise, Trade and Employment, which would have had to provide millions of euros worth of rebates to the airline.
Ultimately, the department refused to sign off on the scheme, while the Revenue then said staff who signed up for the scheme might have additional tax liabilities. The €29.5m settlement will cover PAYE, PRSI, interest, penalties and related costs associated with the restructuring programme, implemented in 2009.