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.
A global business such as the air transport industry needs to adopt a so-called global mindset to thrive in an environment where too often parochial concerns lead to counterproductive action and policy, International Air Transport Association director general and CEO Tony Tyler asserted during his group’s annual general meeting (AGM) in Doha on Monday.
On May 2, NBAA is holding its one-day Business Aviation Tax Seminar at the Hilton San Francisco Financial District. The seminar begins at 8 a.m. Among the subjects to be covered are two key tax issues for business aircraft operators: the application of the federal excise tax (FET) to managed aircraft flying under Part 91; and “Federal Audit Traps and Solutions for Aircraft Leasing Structures.”
The White House released a report on the impact and cost of the October 2013 federal government shutdown, estimating costs anywhere from $2- to $6 billion in lost output for the overall economy.
Among the hardest hit by the 16-day furlough of non-exempt government employees was general aviation. The move closed the FAA Registry office and delayed other certification activities, imposing widespread hardship on general aviation manufacturers. The Registry must approve each certificate of registration that is required for the sale, export and import of an aircraft.
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?
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.
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.
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