Originally Posted by
Random_Flyer
At least in the US, the IRS has penalized people who took fully refundable tickets from their employers, exchanged them for cheaper tickets + cash and then failed to report the income.
Sure, but he could address that by reporting the income (and have the employer be none the wiser). You can report income from drug sales, prostitution and bookmaking with impunity; surely you can report funds embezzled from your employer if you launder it through an airline. Remember how they got Al Capone....
Of course, his ethics or conscience may prevent him from doing so, or his company may feel they should have....