Tax authorities investigate pilot hiring practices - International Law Office

According to media reports, the Norwegian tax authorities are looking into the practice of some low-cost airlines of hiring pilots through contracts with companies owned by those pilots. The pilots own their own companies based in tax havens (eg, the Isle of Man or Gibraltar), and then contract themselves out to airlines. A high-ranking tax official responsible for investigating tax crimes stated that by working under contracts with companies based in tax havens, the pilots may end up paying no tax, even if they live and work outside such tax havens.

The question for the tax authorities to consider is whether a pilot flying for an airline is to be regarded as an employee of the airline, rather than as self-employed or employed by the pilot's own company.

For further information on this topic please contact Paul Sveinsson at Arntzen de Besche Advokatfirma AS by telephone (+47 23 89 40 00), fax (+47 23 89 40 01) or email (paul.sveinsson@arntzendebesche.no).