British Defence Minister Philip Hammond published the details of his plan to appoint a commercial company to manage the UK’s defense procurement. The controversial proposal has been mooted for more than a year and is Hammond’s response to what is widely perceived to be a long history of under-performance by the 15,000-strong Defence Equipment and Support (DE&S) organization.
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.
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.
With the growing complexity of myriad federal, state and local taxes and fees, and the increasing intensity with which they are enforced, there was plenty to discuss at the Commercial Operators Tax (COT) seminar, held September 7 and 8 in Scottsdale, Ariz. Co-sponsored by Conklin & de Decker and the National Air Transportation Association (NATA), the event attracted business aircraft owners, operators and management companies.
Owners and operators of business aircraft were disappointed last month when the IRS issued final regulations disallowing certain deductions for “entertainment” use of company aircraft.
The provisions were originally contained in the “American Jobs Creation Act of 2004.”
Under the new rules, the difference between the actual cost of personal entertainment flights provided for “specified individuals” and the amount included as income for the individual is disallowed as a deduction to the corporation.
Here we go again. Three years after the bottom dropped out of the economy, and just months after a long, slow and painful climb toward recovery seemed to be producing results, the flooring is starting to feel awfully flimsy again.
An economic impact analysis commissioned by the Aerospace Industries Association (AIA) predicts that more than one million jobs will be lost in the aerospace and defense industry, if the U.S. Congress fails to reach an agreement that would prevent automatic government spending cuts.
Defense spending cuts of some $350 billion over the next decade contained in the new debt-limit legislation passed by the U.S. Congress correspond with the numbers expected from an earlier goal advanced by President Obama. But the Pentagon leadership described the potential of $600 billion more in automatic spending cuts as disastrous.
After four highly successful years Brian Johnson, the man behind the Isle of Man Aircraft Registry and the island’s first Director of Civil Aviation, leaves on August 26 to pursue a new challenge (the Swaziland registry, according to some reports).
Imports of business aircraft into the UK have ground to a halt since tax authorities there scrapped its zero-VAT rating in January, according to Gama Aviation CEO Marwan Khalek. The change was forced on the UK by the European Commission with the intent of harmonizing VAT rules for aircraft sales, but the outcome has been a confusing muddle in which no one seems sure how VAT should now be applied.