Wayne Rizzi, the owner of 20-year-old air charter broker Air Royale International, pleaded guilty yesterday to “willfully failing to pay over collected Federal Excise Taxes [FET] to the IRS.” The IRS said that from Oct. 1, 2008, through Dec. 31, 2010 Air Royale collected FET from its customers totaling $489,784, but passed on only $29,286 of this amount to the agency.
NBAA has released an updated version of its Federal Excise Taxes Guide: Details on Air Transportation and Fuel Taxes. Last published in 2005 as the NBAA Federal Excise Tax Handbook, the new guide includes areas that have seen changes–such as the application of FET on fractional aircraft ownership operations; IRS legal interpretations regarding aircraft service and pilot service agreements; and reimbursement under the “Schwab re-interpretation,” based upon the latest information from the IRS, and other sources.
The debate rages on.
Should general aviation pay more toward the cost of the nation’s air traffic control system, especially if it would hasten the implementation of the NextGen air traffic control (ATC) system and depoliticize FAA funding? If so, is the current system of fuel and excise taxes the best way to do it?
NBAA released its new Federal Excise Taxes Guide late last week, marking the first time the guidelines have been updated since 2005. It is intended to provide business aircraft owners, flight departments and charter operators with a basic understanding of the federal excise taxes (FET) that apply to business aircraft activity.
Aircraft operations in Indiana are about to become more affordable after state legislators approved a slate of aviation tax exemptions and restructurings. The measures, adopted at the urging of the Aircraft Owners & Pilots Association (AOPA) and other aviation groups, remove state sales tax on jet fuel and 100LL avgas and restructure the previously existing excise tax on aviation fuel to a fixed total state tax rate.
Flexjet is offering new and existing customers free fuel when they purchase fractional shares from now until April 30. Customers purchasing a one-sixteenth share in a Learjet will receive a credit of 12 hours of free fuel; a similar share in a Challenger earns a 25-hour fuel credit. According to Flexjet, the credit, which includes fuel component adjustments and federal excise taxes, is based on published rates on the day of contract closing and will be applied to the fuel surcharges per hour flown.
At press time, NBAA and other aviation alphabet groups continued to fight a proposed bill in the Washington state legislature that would impose a 0.5-percent excise tax on aircraft in the state. House Bill 3176 and accompanying Senate Bill 6873 would base this annual tax on the most recent sales price, depreciated via a state-mandated schedule.
NBAA issued a call to action to oppose a proposed bill in the Washington state legislature that would impose a 0.5-percent excise tax on aircraft in the state. House Bill 3176 (HB 3176) and accompanying Senate Bill 6873 (SB 6873) would impose this annual tax, according to the most recent sales price, depreciated via a state-mandated schedule.
Valued-added taxes (VAT) may now amount to 25 percent of a jet fuel purchase in some parts of Europe. But that’s the bad news. The good news is that in most cases this tax may be refunded, as may VAT levied on many other business-
related goods and service expenses incurred by company employees traveling abroad.
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