The IRS and our pass privileges
 

Can anyone tell me how does the IRS get his cut off of travel passes we get at our own Airline?

what kind of an agreement is there between the Airlines and the Tax man?

Here in Israel the Tax man decided to look at a pass privilege as an earned benefit and tax it according to its real market price!!!!! Can you believe this s##t??

We need to fight it real fast and hard.

If you have any info as far as the IRS or the Tax authorities position on the matter in European countries or elsewhere please reply soon.


Thanx a lot

TC

Hey TC,

By travel pass... do you mean flying at a reduced fare??
In our company we, as staff, can fly with tickets at 4, 10 or 50 percent of the actual ticket prize without the tax. 4 and 10 percent are "stand by" and the 50 percent is with a "reserved" seat.
And afterwards they add the normal airport taxes that every pax has to pay ...

Example: If a flight from A to B costs 125 (100 for the ticket and 25 for tax) and I decide to take a 10 percent ticket I will pay 35! (10 + 25)

This is how it works at our company! I don't know if it counts as a general rule!

Greeting,
Many happy landings!

I know that here in Holland the "belastingdienst" (IRS) is doiing the same thing... KLM people were the first to be taxed on their ID travel. and yes.. the tax the full price...
If you want the details you might want to contact the VNV (pilots association) in holland

www.vnv.nl

good luck:uhoh:

Thin end of the wedge I suppose, sure it won't be long before Ole Blighty gets taken for a further ride!!:{

Tax on Passes
 

Thank you all for the reply.
I will contact the VNV try to learn more there.

Have a great week.

TC:ok:

Having been the Jumpseat Committee Chairman at a large (non- US) airline in the recent past, I can tell you that in the United States they are trying to fend off the IRS which is trying to attempt the same stunt non only with non-revenue pass privileges, but also jumpseat privledges. In Canada they are also trying to tax jumpseat purposes. It's a major rapeing over and it :mad: :mad: me :mad: :mad: :mad: ! You can't blame the tax man-- he will go wherever he can smell money. I figured that if you asked him if you gave a friend a stick of gum, whether he should pay tax on it then he would find some way to say "yes."

Good luck in your fight and don't ever stop kicking and screaming!!! :ok:

Thanx Panama,

I guarenty you , we are screamin our heads off.
I just wonder how come this thing jumped our asses without us seeing it comming.
No one ever complained?

Read them lips: No $*&^%$ new taxes.



TC:ok: :ouch:

Some years ago, a group of TWA pilots decided that, in the interests of 'bigger bucks', they all declared their residence in the Bahamas, for tax purposes.
A few actually moved there...:E
All were based in JFK, and oddly enough, four were UK citizens, with homes in the UK.
Anyway, the IRS disallowed same.
So, a couple of these guys decided to live permanently in the UK (and avoid distractions such as the Inland Revenue) and commute to JFK for their flights.
This all came unstuck one fine day at LHR, when two of these pilots (both rostered together...Captain & First Officer/B747), approached runway 28R (as it was then) with the landing gear still retracted/approach flaps selected, and the Flight Enginer out to lunch (so to speak)...down to 400agl, before the go-around was initiated.
At least the tower controler was actually awake.
When word of this reached the TWA head shed, the Captain graciously retired, and the co-pilot went on unpaid leave for a year... to Taiwan and Thailand, to study the local ah...dialects..:E :ok: