FlyerTalk Forums - View Single Post - "International Facilities Tax" on redemptions on AA charged based on account address!
Old Feb 3, 2012 | 12:11 pm
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nabeelj
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Join Date: Aug 2004
Location: YYZ
Programs: AA LT Plat, Hilton Diamond
Posts: 1,143
"International Facilities Tax" on redemptions on AA charged based on account address!

Hello.

I recently used my Avios miles to booked my family of 4 on two separate awards, YYZ-ORD in J and ORD-YYZ in Y. The taxes per person for the two redemptions were C$72.80 and C$24.74 respectively.

I then booked my brother-in-law and his wife, also on YYZ-ORD and ORD-YYZ. I changed my Avios account to my US address, since I wanted to pay on my US CC in US$, and the taxes per person for the two redemptions were US$54.29 and US$2.50 respectively.

I was surprised to see the discrepancy, so I did some experimentation today. I tried the itinerary below using my Avios account, comparing the taxes when my address was US-based or Canada-based. I noticed that if your Avios address is Canada-based, you are incorrectly charged the International Facilities Tax.

I contacted the DOT by email, who pointed me to http://www.irs.gov/businesses/small/...irNoAmountPaid which clearly states this tax should not be charged on frequent flyer redemptions. I understand if they charge this when YQ is charged, since the IRS (and FTers!) would not consider this a free ticket - but that is not true in this case.

Any pointers on how to get my 4 x 2 x US$16.30 back?

And for those redeeming when the International Facilities Tax shows up, try changing your Avios account address to a US one to avoid this - until BA fixes it!


YYZ-ORD
US address
Immigration User Fee - USA USD7.00
Animal & Plant Health User Fee (Aphis) - USA USD5.00
Airport Improvement Fee - Canada USD24.96
Air Travellers Security Charge - Canada USD12.08
Customs User Fee - USA USD5.50
Total government, authority and airport charges* USD54.54

Canadian address
Immigration User Fee - USA CAD7.17
Animal & Plant Health User Fee (Aphis) - USA CAD5.12
Airport Improvement Fee - Canada CAD25.00
Air Travellers Security Charge - Canada CAD12.10
Transportation Tax(Arrival) - USA CAD17.10
Customs User Fee - USA CAD5.63
Total government, authority and airport charges* CAD72.12
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