Brazilian tax authorities, police and aviation officials seized nine business jets late last month and have targeted 13 more. Allegedly, Brazilians own and use the jets but registered them overseas to avoid state and federal taxes of nearly 35 percent. The value of the jets, $275 million, is almost equal to the country’s total customs seizures last year. Foreign aircraft can legally remain in Brazil for up to 60 days annually without paying import duties.
The recently approved highway reauthorization bill was passed without repeal of the fuel fraud tax, according to the National Air Transportation Association (NATA). The tax was part of the 2005 highway bill, an effort to prevent truckers from avoiding highway taxes by filling up with jet fuel. NATA plans to continue its efforts to repeal the tax, according to Eric Byer, v-p of government and industry affairs.
Italy’s parliament passed proposed changes to the aircraft luxury tax today, according to NBAA.
NBAA staff members met with officials at the Italian embassy in Washington last week to explain the negative effect that a recently enacted business aircraft tax could have on commerce between Italy and the U.S. The new tax, which imposes a levy on all civil aircraft that spend more than 48 hours on the ground in Italy, could total more than $393,630 annually for aircraft weighing more than 22,046 pounds, NBAA said.
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.
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.
The only certainty is continued uncertainty when it comes to the outlook for the global economy in 2012. For business aviation at least, it used to be assumed that you had to look only at the state of the world’s major stock markets to assess the market’s prospects. But share price fluctuations tell only a small part of the story these days.
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.
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