The Mediterranean island of Malta, which was awarded Britain’s George Cross gallantry medal for its resistance against Axis air raids and a naval blockade during World War II, is now engaged in a campaign to become as involved in the aviation services industry as it previously has been in maritime affairs.
Financing, Insurance and Taxes » Taxes
Tax issues for aircraft operators.
Jetex Flight Support has introduced a new program that allows qualifying aircraft operators to buy fuel more easily without paying value added tax (VAT). The service is provided through the flight planning and support group’s new subsidiary, Jetex Fueling Services. Initially the program will be available in Austria, the Czech Republic, Finland, France, Germany, Ireland, Poland and Switzerland. Jetex intends to extend it to other countries in the future, according to program manager Ahmed Ghazal.
Brazilian tax, police and aviation authorities joined forces to seize nine business jets last week, and they have targeted 13 more aircraft. According to officials, Brazilians allegedly own and use the jets but registered them overseas to avoid Brazilian state and federal import taxes of nearly 35 percent. Foreign-registered airplanes can remain in Brazil for up to 60 days without paying import duties.
Rep. Thomas Petri (R-Wis.) sent a letter early last week to Dave Camp, chairman of the House Ways and Means Committee, asking for clarification of Congress’s intent on applying the Federal Excise Tax (FET) to managed aircraft.
With aircraft owners facing continuing headaches over importing aircraft into the European Union, offshore registrations are increasingly being considered as a more flexible option. At the same time, lawyers have been scrambling to develop elegant solutions to avoid at least immediate liability for punitive rates of value added tax through deferral schemes.
Many business aviation operators could lose their livelihoods because of political tussles between the European Union (EU) and the rest of the world, especially over the EU emissions trading scheme (ETS). This was the clear message underpinning the opening general session of EBACE 2012 yesterday, when a panel of EU regulators joined Fabio Gamba, CEO of the European Business Aviation Association (EBAA), and Ed Bolen, president of the U.S.
India’s Business Aircraft Operators Association (BAOA) is urging the nation’s government to abandon plans for new restrictions on flights by foreign-owned aircraft. The campaign comes as the country’s tax authorities are probing 15 Indian companies that they believe have registered corporate aircraft offshore with the intention of avoiding customs duty and taxes.
India’s Directorate of Revenue Intelligence (DRI) is scrutinizing approximately 15 Indian companies that it believes are basing their foreign-registered corporate aircraft overseas to evade customs duty and taxes. In particular, the agency has confirmed it is looking at the status of a Boeing 727 owned by the UB Group, Punj Lloyd’s Gulfstream, Essar’s Boeing 737 and Bharat Hotels’ Embraer Legacy 600. Several other corporate jets are also understood to be under investigation.
Italy’s parliament has approved plans for a new tax on all business aircraft, regardless of country of registration, as part of the effort to reduce the country’s massive national debt. Business aviation interests expect to learn the details of how the legislation will work by the end of February, but it could impose a tariff of several hundred thousand dollars on the owner of a large jet that spends more than 48 consecutive hours in the country.
With the Obama Administration doggedly promoting its proposal for a $100-per-flight user fee for millions of flights by turbine-powered general aviation aircraft, GA interests are organizing continued opposition.