Hong Kong and Macau - Donald Tsang's 340K miles from official trips

http://news.now.com/home/local/player?newsId=35402

(I think TVB reported 330K...maybe 10K just posted)

Interesting (translated): "The Office of the Chief Executive stated, the CE and civil servants must report miles accrued to their personal accounts, and if they cannot be redeemed for official travel prior to miles expiry, the CE and civil servants may be allowed to redeem them for personal travel on a case by case basis"


(I'm presuming the miles are Asia Miles, and Tsang is Diamond Plus ex officio)

I'm just puzzled at the office of CE's "policy" tho. The three corporates I worked for never asked us staff to attempt to redeem miles for flights - it's accepted that staff can keep this as a fringe benefit (tho it is acknowledged this is a soft bribe).

We let them keep miles; we take back vouchers for ipods (Virgin) (http://webb-site.com/articles/voucherprice.asp) and we ask staff to repay anything that has a clear cash value (e.g. cash rebates). Tho we never attempted to recover miles.

Civil service sounds tougher than us in this case. Tho I can't believe anyone in the civil service will seriously make an attempt to burn miles for official trips (even if the miles are earned from previous official trips, so it's just papering over.

Australia taxes work miles (Fringe Benefits Tax).

http://news.now.com/home/local/player?newsId=35402

(I think TVB reported 330K...maybe 10K just posted)

Interesting (translated): "The Office of the Chief Executive stated, the CE and civil servants must report miles accrued to their personal accounts, and if they cannot be redeemed for official travel prior to miles expiry, the CE and civil servants may be allowed to redeem them for personal travel on a case by case basis"


(I'm presuming the miles are Asia Miles, and Tsang is Diamond Plus ex officio)

I'm just puzzled at the office of CE's "policy" tho. The three corporates I worked for never asked us staff to attempt to redeem miles for flights - it's accepted that staff can keep this as a fringe benefit (tho it is acknowledged this is a soft bribe).

We let them keep miles; we take back vouchers for ipods (Virgin) and we ask staff to repay anything that has a clear cash value (e.g. cash rebates). Tho we never attempted to recover miles.

Civil service sounds tougher than us in this case. Tho I can't believe anyone in the civil service will seriously make an attempt to burn miles for official trips (even if the miles are earned from previous official trips, so it's just papering over.

Australia taxes work miles (Fringe Benefits Tax).

Well I supose that's what makes some countries so different from others. I am sure any swedish politician would have to resign for omiting to repport any mileage accrual from official trips. (I am not even sure if they can actually earn miles) After all it makes sense, the public pays the trip, and the benefits shall revert to the public, otherwise the choice of airline might not be all the transparent that it should (we are talking theory of course, I don't see Donald flying SQ just because they offered a cheaper Y seat :D).

Wether private companies allows their staff to earn FF miles should not set a standard for public servants.

Govt of Canada policy for Full-Time Governor in Council Appointees

http://www.pco-bcp.gc.ca/index.asp?lang=eng&Page=information&Sub=publications&Doc=terms-conditions/2009-eng.htm#13.2

"When redeemed for personal use, travel points must be declared as a taxable benefit in accordance with the Canada Revenue Agency's Interpretation Bulletin IT-470R (Consolidated) - Employee Fringe Benefits."


In the private sector, we generally keep and track+manage(here is the key) our own FF points and they are not taxable. I know some companies do ask employees to use points for work only, but it's too costly to track and enforce for most companies .

Perhaps he has Asia Miles. However, the subject is irrelevant to CX. I am moving the thread over to the HK forum.

cxfan1960
CX CoMod

The problem with Donald is not about the miles, but misjudgment on travel, like unnecessary presidential suites.

Since the Audit Commission report did not mention everything in detail (like fare classes). So it is difficult to tell how many miles that he got.

Mile is the least issue as the public yells foul about his abuse of public fund.

Donald should learn from Jimmy Carter:

Former President Carter on Delta Air Lines flying to Barack Obama's Inauguration (http://www.youtube.com/watch?v=zmjj9vezIw4)

BTW - Here is the basic U.S. Government policy:

1. Basically, with limited exceptions, everyone in coach (Feel free to upgrade on your own).

2. You keep your miles and upgrades. Tax Free.

3. Airfares are under contract - same price across the entire year.

The problem with Donald is not about the miles, but misjudgment on travel, like unnecessary presidential suites.

Since the Audit Commission report did not mention everything in detail (like fare classes). So it is difficult to tell how many miles that he got.

Mile is the least issue as the public yells foul about his abuse of public fund.

Donald should learn from Jimmy Carter:

Former President Carter on Delta Air Lines flying to Barack Obama's Inauguration (http://www.youtube.com/watch?v=zmjj9vezIw4)

BTW - Here is the basic U.S. Government policy:

1. Basically, with limited exceptions, everyone in coach (Feel free to upgrade on your own).

2. You keep your miles and upgrades. Tax Free.

3. Airfares are under contract - same price across the entire year.

it was mentioned in other occasions that he was traveling in F to brazil (where all this episode started). OTOH an ex official Legco member (I think there's only 1 now anyway, so you know who...) did mention the miles ought to be for business upgrades/companion redemption. (i would imagine CXCP would open up F companion for him?)

Since Percy have mentioned this is a soft bribe, I do agree that he ought to acknowledge this in some ways...

Anyway, methinks this is just a nail in the coffin for the entire episode, if he had behaved better with the hotels noone would be talking about these miles here. (who pays for Mrs Tsang anyway? him/herself or the govt?)

Anyway, methinks this is just a nail in the coffin for the entire episode, if he had behaved better with the hotels noone would be talking about these miles here. (who pays for Mrs Tsang anyway? him/herself or the govt?)

Mrs. Tsang? The Government of course.

To be honest, I don't "feel" there is a problem for CE to travel in F. I don't even concern how he pocketed those miles.

The issue is does he become another Mileage Runners?

All those trips...hotels...Points...Points...Points...Miles. ..Miles...Miles...:D:D:D

(we are talking theory of course, I don't see Donald flying SQ just because they offered a cheaper Y seat :D).


But he certainly reports it as economy equiv. fare when getting on his buddies' Citation/Gulfstreams during his personal vacations:D

Honestly, to him as a civil servant all his life, I can't believe how stupid he is for pulling crap like this. In a way, these conducts pretty much reflect the social problem/conflicts we see in HK.

To be honest his action is kind of disgrace... yes they can pull the thing saying it's done by the secretary but I doubt he / she do stupid things like that without boss agree ..... will your secretary book a suite / First class flight without you saying a word? seriously doubt it

All those trips...hotels...Points...Points...Points...Miles. ..Miles...Miles...:D:D:D

He's a (MO) Fan...no points there.

To be honest his action is kind of disgrace... yes they can pull the thing saying it's done by the secretary but I doubt he / she do stupid things like that without boss agree ..... will your secretary book a suite / First class flight without you saying a word? seriously doubt it

Don't worry - ICAC is here...he is still under active investigation...

He's a (MO) Fan...no points there.

You should say MFM friends...:D:D:D

(No mean to offend his wife - as she is the true MFM person)

Honestly any job where you fly and get the FF mile I guess it's considered a side/benefit or perk for personal use.

But now that it's so publicized he cannot dare to use it for himself. So I hope he donates it to something charitable.

Although the law is on the book that you must use the miles for work travel, I doubt many people do, and especially the reporting taxes part for Canadians. haha

But now that it's so publicized he cannot dare to use it for himself. So I hope he donates it to something charitable.

Then CX will profit from this...:D:D:D

Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_1_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9B206 Safari/7534.48.3)

Slightly OT I wonder if it is easier to evade fringe benefits tax if a Canadian/Australian redeems through a foreign carrier on a foreign program? If so, maybe Tsang's AA (gasp!)

Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_1_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9B206 Safari/7534.48.3)

Slightly OT I wonder if it is easier to evade fringe benefits tax if a Canadian/Australian redeems through a foreign carrier on a foreign program? If so, maybe Tsang's AA (gasp!)

Oriental Daily suggests it is CX without doubt (due to the mile expiration policy, as well as the DM).

I am not sure about Australian. But I am pretty much sure that Canadian are more AP than AA. The reason? Ease of earning.

Reporting of FF points for Canadian tax purpose has always been "self-reporting", in the sense that no tax slip is issued by any employer or airlines, even before the court ruled that FF points are no longer taxable if certain criteria are met.

Canadian tax authorities never actively pursued FF points.

US government has this issue too of course. For years USG travellers could not use the miles for personal use. One had to keep accounts (it was fine to accrue miles and status). One may have been able to use those miles for upgrades or to "pay" for government travel, but not for personal use.

Some time in the 1990s the USG changed the policy so now USG travellers may keep the miles for personal use.

At the highest level of government it's usually not an issue because they often get government planes to fly them.