Originally Posted by Nicc HK
Government Taxes are specific levies and in this case on services actually rendered. If the service is not rendered then the end user cannot be taxed and this must be returned. It is illegal for private companies to keep monies paid for taxes but services have not been rendered.
Where this advice is flawed is that "taxes" are really taxes, fees and charges. There are separate amounts paid for airport tax, passenger handling fees, oil surcharges etc.
In the case of the UK, the "Airport Tax" element is for flights departing the UK. It is not an airport tax as is generally understood. The official name is called Air Passenger Duty.
In other words the entire APD goes to the UK government. Not a penny goes to the airport.
Also the tax point for APD is when the plane leaves the ground. So passengers who do not travel are not paying APD at all and therefore the airlines cannot be accused of withholding tax (ie APD) from the government.