Author Topic: BA Illegally Collecting USA International Facilities Tax On Award Tickets?  (Read 14081 times)

Offline PlatinumGuy

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Any FT'r looking here wanna explain why exactly is it OK for a company to give my money to the Gov.?
& why is it illegitmate to inform a company of legal danger, in a country where disputes are resolved in court?
״וזה כלל גדול: שישנא אדם כל דבר שקר. וכל מה שיוסיף שנאה לדרכי השקר יוסיף אהבה לתורה.״ - אורחות צדיקים

Offline AsherO

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Did you read the reason it was deleted?

I didn't read through the FT thread.

Offline AJK

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I didn't read through the FT thread.

I did.

I'm glad I could be of service.
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Offline Saver2000

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What ever happened with this? Why did this die down?  Did they stop charging the "tax"?

Offline Ergel

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What ever happened with this? Why did this die down?  Did they stop charging the "tax"?
Because no one really cared besides dan
Life isn't about checking the boxes. Nobody cares.

Offline Chaikel

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Create professional looking itineraries.
Check out eliteitinerary.com

Offline Dan

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Posted this on FT after a commenter on DD mentioned possible fuel surcharges to latin america...reposting here as it probably affects many here as well...


I was comparing AA taxes to BA taxes to see if BA tries collecting fuel surcharges for any flights that are wholly within the western hemisphere (appears that they don't) and noticed that BA charges exactly $32.60 more than AA on award tickets between the US and Latin America.

This is true for every flight I checked, including:
-SJU ($5 on AA, $37.60 on BA)
-CUN ($63.30 on AA, $95.90 on BA)
-EZE ($61.50 on AA, $94.10 on BA)
-MEX ($64.61 on AA, $97.21 on BA)

Breaking it down it seems that BA is charging a USA International Facilities Tax on these awards as follows:

Transportation Tax(Departure) - USA USD16.30
Transportation Tax(Arrival) - USA USD16.30

No other US airline collects those fees on award tickets. In fact] the IRS says,
"As a general rule, all amounts paid for the air transportation of persons are subject to tax. Where no amount is paid for air transportation, such as when the transportation is obtained by the redemption of frequent flyer miles, the transaction is not subject to the percentage tax, the domestic segment tax, or international facilities tax. Cite: Rev. Rul. 84-12, 1984-1 C.B. 211."

This issue has been fixed.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline AJK

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I believe they got sued...
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Offline myb821

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Offline ilherman

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This issue has been fixed.
Update FT?   :P
You can say what you think when you think what you say.

Offline chff

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Code: [Select]
5 - ALL NON-REVENUE TICKETS (IE TICKETS WHERE NO FARE, NO                       
TAXES/FEES/CHARGES, NO SURCHARGES, NOR ADDITIONAL CHARGES                       
ARE COLLECTED). THIS EXEMPTION WOULD ALSO APPLY IN THE CASE                     
OF A NON-REVENUE TICKET WHEREBY A GOVERNMENT IMPOSED TAX OR                     
FEE ON THE PASSENGER (AS OPPOSED TO ONE IMPOSED BY THE                         
AIRLINE THAT IT ELECTS TO PASS ON TO ITS PASSENGER) IS                         
COLLECTED.                                                                     
NON FARE PAYING PASSENGER WITH 100 PERCENT REDUCED FARE/                       
NON-REVENUE/FREE TKTS OTHER THAN TOUR CONDUCTORS/FREE                           
INF(TRANSPORTATION FOR WHICH NEITHER FARE NOR SERVICE CHARGE                   
HAS BEEN PAID).                                                                 
ID00 MAY BE EXEMPT. PLEASE CONTACT CARRIER.                                     
6 - FREQUENT FLYER FREE TICKETS                                                 
EXAMPLE: FREQUENT FLYER TICKET WHERE ONLY THE US SECURITY                       
FEE (CODE AY) IS COLLECTED. SUCH A TICKET WOULD STILL BE                       
EXEMPT FROM THE US TAX.                                                         
                                                                               
    NOTE: US TAX MUST BE CHARGED FOR FREQUENT FLYER TICKETS                     
               ISSUED ON 080 (LOT) STOCK.                                           
                                                                               
    NOTE: US TAX MUST BE CHARGED FOR TKTS ISSUED UNDER                         
          THE AF/BR/JQ/QF/KE/OZ FREQUENT FLYER PROGRAMME(S).                   
                                                                               
    NOTE: US TAX MUST BE CHARGED FOR FREQUENT FLYER TICKETS                     
          ISSUED ON 105 AY TICKET STOCK.