India’s Directorate of Revenue Intelligence is scrutinizing eight Indian companies that it believes are basing their foreign-registered corporate aircraft overseas to evade customs duty and taxes. The agency is said to be looking at the status of a Boeing 727 owned by the UB Group, Punj Lloyd’s Gulfstream, Essar’s Boeing 737 and Bharat Hotel’s Embraer Legacy 600. Several other Indian companies’ business jets are also understood to be on the agency’s radar. India does not levy a customs duty on foreign-registered aircraft if they fly out within 15 days of arrival into the country.
Financing, Insurance and Taxes » Taxes
Tax issues for aircraft operators.
Italy’s parliament this week approved plans for a new tax on business aircraft, but details of how the legislation will work in practice are not anticipated until later next month. However, it is expected that tariffs could reach about $385,000 for larger business jets that spend more than 48 consecutive hours in the country. The tax will apply only to privately owned aircraft and will exclude those operated under commercial air operator certificates, as well as aircraft operated by governments and for purposes such as emergency medical services.
Taxes. I would like to pay fewer taxes, or none at all, but I accept why societies need them. I know some folks think we should do away with taxes altogether, but I can’t see how that could work. Like death, taxes are inevitable. On that cheery note, there is one tax I believe the aviation community needs to keep and support, if for no reason other than to avoid its alternative. The tax is the one on aviation fuel; its alternative is user fees.
Accelerated depreciation for private aircraft became a hot topic again this past June when President Obama repeatedly cited it as a prime example of special tax breaks for the rich he wanted to eliminate.
Congress once again ran FAA operations almost to the wire last month before finally agreeing on a 22nd “temporary” extension of the agency’s operating authority, thus preventing another partial shutdown of the FAA and a work stoppage affecting more than 200 airport construction projects and safety improvements.
The European Commission is refusing to back down over the implementation of its controversial emissions trading scheme (ETS), even in the face of possible new legislation that would make it illegal for U.S. aircraft operators to comply with its requirements.
In a resumption of his campaign against business aviation, President Obama yesterday called for an end to “tax breaks” for corporate jet owners.
Missouri Sen. Claire McCaskill (D), who is likely to face a tough re-election race next year, is selling the share of a Pilatus PC-12 she and her husband own following disclosure that they owed more than $287,000 in property taxes on the single-engine turboprop. She has since paid the taxes.
As the 112th Congress kicked off its first legislative year, the incoming chairman of the House Transportation and Infrastructure Committee was gearing up for another run at FAA reauthorization.
Rep. John Mica (R-Fla.) was hoping to hold hearings before the end of last month on a new funding bill for the agency. And once again, general aviation was closing its ranks to head off any potential user fees.
General aviation groups today hailed the passage of a bonus depreciation bill that will allow for accelerated depreciation of business aircraft. The Senate passed its version shortly after legislators returned from their summer recess last week. The House of Representatives already passed similar legislation in June, but had to vote on the Senate version since it contained minor differences.