Aviation tax firm Wolcott & Associates, debuting as an exhibitor at the NBAA Convention, is showcasing its proprietary web-based Flight Tax Systems (FTS) software here in Orlando. FTS helps users identify, protect and preserve tax deductions for their aircraft, and this year a new data import function has been added to the software.
NBAA president and CEO Ed Bolen praised the leaders of the House General Aviation Caucus on Tuesday for their continued support of “one of America’s greatest industries,” and repeated opposition to proposals that would be harmful to general aviation. “General aviation provides more than 1.2 million jobs–good manufacturing and service jobs–and also supports tens of thousands of American businesses,” he explained to a capacity crowd in a Capitol Hill hearing room.
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.
Unless you hang your hat in Delaware or New Hampshire or live in one of the few countries that don’t assess sales tax, you probably hand money to the government almost every time you buy something. In many U.S. states, the levy on purchases runs 5 to 7 percent or more and, with local surtaxes, you can wind up paying as much as 15.5 percent on most purchases.
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?
Ryanair said it will appeal Wednesday’s ruling by a provincial court in France that imposed fines and damages totaling €8 million ($10.8 million), the majority of which relate to alleged non-payment of French social insurance and state pension contributions for Ryanair crews flying to and from Marseille from 2007 to 2010.
Overseas visitors may be puzzled by the number of so-called “trading” firms prominently placed in the LABACE exhibition areas. Why at an event that lets potential purchasers meet directly with manufacturers do Brazilian middlemen occupy so much space?
Wisconsin MROs have once again been foiled in their attempt to get the state legislature to exempt private aircraft maintenance and modification from the 5.5-percent state sales tax. While the tax does not apply to aircraft operated under Part 121 or 135 certificates, it does apply to those operating under Part 91.
Online jet charter broker PrivateFly estimates that approximately half of the estimated £9.3 million in potential revenue from the recent extension of the UK’s air passenger duty (APD) tax to business jets will be lost to nonpayment in the first year. The extended tax, which became effective on April 1, applies to all flights departing from the UK.
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