I would like to clarify exactly what the forgivable loan is.
I had been under the impression that it merely represented the cost of training at FTA Adelaide. So, my first understanding was that a cadet with zero flying experience will be lumbered with a $1.1m HKD training cost, which should they leave before 6 years of service the cadet would be liable to pay, however the training cost/forgivable loan will be 'forgiven' after 6 years of service. So therefore by partaking in the cadet training you are effectively bonded to give Cathay at least 6 years service.
The more I read on this and other threads, the more it sounds like this is not the case at all and the forgivable loan is simply a 'joining gift' from Cathay upon being hired as an SO which is effectively yours and a 'gift' rather than a loan as long as you work for Cathay for at least 6 years.
Can someone tell me which is correct?
Also, what is the tax situation. From what I gather, you are taxed on the whole amount once the loan is 'forgiven' at the end of your 6th year of service. Am I right? If so, that sounds fair enough to me as it is money you are being given after all, much like your monthly salary. I can see how it may be hard to pay the tax bill without having purposefully planned and saved for it though. If, however the forgivable loan is merely the cost of your FTA training, then this would mean you are paying tax on the money Cathay pay to train you, which is definitely a bit sneaky of them.
Thanks!
