Work perks to be taxed in crackdown

Work privileges must be declared as income for taxation according to employment body Urssaf.

The institution has decided to crack down on work ‘freebies’ such as travel and free products made by an employee’s company.

Since 1975 the law has stipulated that such perks are payment and should be subject to assessment and taxation and discounts should not exceed 30% of the public price, however this has rarely been enforced.

Urssaf estimates the lost revenue to the government is around €172million and is leading a crackdown through an audit of the practices of Air France.

It is demanding that the airline reveal the details of all free and discounted tickets issued to employees and has threatened the company with sanctions if it does not comply.

Every year the company issues its 70,000 employees and their families with around 800,000 tickets.

CFDT-Air France union representative Monique Rabussier said: “That’s part of our work contract. It’s an essential part of recruitment.”

Workers at the airline are meeting today to discuss strike action.

Staff at the SNCF are also worried about the impact of such a crackdown, which would tax free and discount travel for employees.

One of the largest unions of railway workers has threatened strikes if their company perks are threatened.

SNCF director Guillaume Pepy said it was ‘pretty normal’ that workers benefit from advantages of this nature. “At every chance they try to present railway workers like they are well-off. I think that’s a bit over the top.”

Staff at energy company EDF and GDF also fear their 10% on bills could come under scrutiny.

Photo:Flying Blue