tax on reward ticket
Apr 2, 2002, 9:07 pm
#16
Join Date: Mar 2000
Location: YVR
Programs: AE
Posts: 864
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Shareholder:
both example tables printed in the Toronto Star on Sunday, and sourced from AC and WestJet, the GST is added on top of the $24, imposing yet another $1.68.</font>
both example tables printed in the Toronto Star on Sunday, and sourced from AC and WestJet, the GST is added on top of the $24, imposing yet another $1.68.</font>
Apr 2, 2002, 9:43 pm
#18
Guest
Posts: n/a
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Shareholder:
For too long it has been next to impossible to decipher the string of numbers found on an airline ticket </font>
For too long it has been next to impossible to decipher the string of numbers found on an airline ticket </font>
The same sort of seperate and confuse style of math and accounting has crept in there.
Apr 2, 2002, 9:52 pm
#19
Join Date: May 1999
Location: Ottawa
Posts: 8,564
On the Air Transport Association of Canada website (www.atac.ca), there's the text of a presentation to the Standing Committee on Finance. Included is this:
andrew
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">One final point on which we would like to ask the Committee for some support. This is a very difficult tax. It contains myriad complexities.
For example, we have 16 different charging options for this tax, depending on where the ticket was purchased, where the flight is headed and whether GST, HST or QST apply. All this has to be properly coded into the computer reservation systems.</font>
For example, we have 16 different charging options for this tax, depending on where the ticket was purchased, where the flight is headed and whether GST, HST or QST apply. All this has to be properly coded into the computer reservation systems.</font>
Apr 2, 2002, 9:58 pm
#20
Original Poster
Join Date: Jan 2002
Posts: 148
My itinery is as follows,
Apr. 26, YYZ-YVR, AC149
Apr. 30, YVR-YEG, AC244; YEG-YYZ, AC 154
There is no non-stop flight available for the return. I burned 20,000 miles for each ticket because my schedule falls into the promtion period.
It's my first time to redeem award ticket and I found it very difficult to get a seat on a desirable date and time.
Apr. 26, YYZ-YVR, AC149
Apr. 30, YVR-YEG, AC244; YEG-YYZ, AC 154
There is no non-stop flight available for the return. I burned 20,000 miles for each ticket because my schedule falls into the promtion period.
It's my first time to redeem award ticket and I found it very difficult to get a seat on a desirable date and time.
Apr 2, 2002, 10:05 pm
#21
Join Date: May 1999
Location: Ottawa
Posts: 8,564
I realized after my last post that it doesn't actually make the point clear either way (because no one has said there's no GST, just whether it's in the $24). This should:
From CCRA website GST Newsletter
The only thing I note of interest is that the charge is $11.22 if GST/HST applies to the ticket, which makes the total $12 when 7% GST is added, but $12.90 when 15% HST is added.
It doesn't say what a "chargeable emplanement" is but I wonder how they handle multi-day stopovers (which lead to an additional charge in the case of YVR's AIF).
andrew
[This message has been edited by Andrew Webber (edited 04-02-2002).]
From CCRA website GST Newsletter
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Air Travellers Security Charge
As announced in the Federal Budget of December 10, 2001, the federal government will introduce an Air Travellers Security Charge to fund the new air security expenditures. Bill C-49 received first reading in the House of Commons on February 5, 2002.
The Bill proposes that the charge will apply to air travel occurring after March 31, 2002, for which payment is made after that date, in the case of tickets purchased in Canada, and to air travel occurring after May 31, 2002, for which payment is made after March 31, 2002, in the case of tickets purchased outside Canada. Air carriers or their agents will collect it at the time the airline tickets are purchased.
Generally, for travel within the continental zone (i.e., Canada, the United States excluding Hawaii, and the Islands of St-Pierre and Miquelon), and where GST/HST applies at the rate of 7% or 15% to the air passenger transportation service, the charge will be $11.22 for each chargeable emplanement in Canada to a maximum of $22.43. Where the air passenger transportation service is zero-rated or where GST/HST does not apply, the charge will be $12.00 for each chargeable emplanement in Canada to a maximum of $24.00. For travel to a destination outside the continental zone, the charge will be $24.00 where there is a chargeable emplanement in Canada.
For GST/HST purposes, the amount of the security charge is included in the consideration for the supply of the air transportation service. As such, where the supply of the service, other than a zero-rated supply, is made in a participating province, the total consideration for the supply, which includes the security charge, is subject to HST at 15%. Where the supply is made in a non-participating province, the total consideration for the supply, including the security charge is subject to GST at 7% providing the supply is not zero-rated.
For general enquiries regarding the ATSC in Canada and USA call 1-877-432-5472 or for other countries call 1-902-432-5472.</font>
As announced in the Federal Budget of December 10, 2001, the federal government will introduce an Air Travellers Security Charge to fund the new air security expenditures. Bill C-49 received first reading in the House of Commons on February 5, 2002.
The Bill proposes that the charge will apply to air travel occurring after March 31, 2002, for which payment is made after that date, in the case of tickets purchased in Canada, and to air travel occurring after May 31, 2002, for which payment is made after March 31, 2002, in the case of tickets purchased outside Canada. Air carriers or their agents will collect it at the time the airline tickets are purchased.
Generally, for travel within the continental zone (i.e., Canada, the United States excluding Hawaii, and the Islands of St-Pierre and Miquelon), and where GST/HST applies at the rate of 7% or 15% to the air passenger transportation service, the charge will be $11.22 for each chargeable emplanement in Canada to a maximum of $22.43. Where the air passenger transportation service is zero-rated or where GST/HST does not apply, the charge will be $12.00 for each chargeable emplanement in Canada to a maximum of $24.00. For travel to a destination outside the continental zone, the charge will be $24.00 where there is a chargeable emplanement in Canada.
For GST/HST purposes, the amount of the security charge is included in the consideration for the supply of the air transportation service. As such, where the supply of the service, other than a zero-rated supply, is made in a participating province, the total consideration for the supply, which includes the security charge, is subject to HST at 15%. Where the supply is made in a non-participating province, the total consideration for the supply, including the security charge is subject to GST at 7% providing the supply is not zero-rated.
For general enquiries regarding the ATSC in Canada and USA call 1-877-432-5472 or for other countries call 1-902-432-5472.</font>
It doesn't say what a "chargeable emplanement" is but I wonder how they handle multi-day stopovers (which lead to an additional charge in the case of YVR's AIF).
andrew
[This message has been edited by Andrew Webber (edited 04-02-2002).]
Apr 2, 2002, 10:13 pm
#22
Join Date: May 1999
Location: Ottawa
Posts: 8,564
You can read the bill in its entirely here:
Parliamentary Website
"Print Format" in the top-right corner means PDF. It's only 124pp.
andrew
Parliamentary Website
"Print Format" in the top-right corner means PDF. It's only 124pp.
andrew
Apr 2, 2002, 10:16 pm
#23
Company Representative - Air Canada
Join Date: May 1999
Location: Canada
Posts: 24,215
Since he's going via YEG, there's the extra YEG AIF, adding that to the $35 that CPYVR got, it sounds about right. After paying the YVR AIF, you'll be paying $50/person just in taxes! 
Apr 2, 2002, 10:38 pm
#24
Join Date: Apr 2001
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I was amazed recently when I was only charged CDN$8.50 for a EWR-YUL reward ticket, when normally we pay $150 in taxes. Did AC forget to charge me something?
Apr 2, 2002, 10:40 pm
#25
Company Representative - Air Canada
Join Date: May 1999
Location: Canada
Posts: 24,215
Nope. Since the base fare of your award ticket was $0, there are no taxes on it. The $8.50 that you paid was most likely the security surcharge that the US government charges. Then you pay for the YUL AIF at the airport when you leave so that's why you only had to pay $8.50.
Apr 3, 2002, 6:16 am
#28
FlyerTalk Evangelist
Join Date: Sep 1999
Location: Toronto, Ontario, Canada
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Posts: 38,187
From this morning's GLOBE:
"Something to think about at the airport
By JEFFREY SIMPSON
Wednesday, April 3, 2002 Page A13
"On my desk sits a return air ticket to Washington, booked months ago during a seat sale. Its total cost: $391.60, of which 40 per
cent derives from fees and taxes, most of them imposed in Canada."
URL is too long, perhaps someone more talented in these matters can post a short link
Also reported in today's ROB, is the scramble travel agents went through last week to avoid having to pay the tax on behalf of tens of thousands of charter tickets associated with cruise and other packages. Since they don't normally pay the carrier money for the charter until two weeks prior to travel, these flights would be subject to the tax unless pre-paid by March 31st.
Thanks for posting the details, AW. Unfortunately, it is written in the usual Department of Finance version of the English language, which means it is incomprehensible to most of us. [Ever tried to complete a corporate income tax form?]
"Something to think about at the airport
By JEFFREY SIMPSON
Wednesday, April 3, 2002 Page A13
"On my desk sits a return air ticket to Washington, booked months ago during a seat sale. Its total cost: $391.60, of which 40 per
cent derives from fees and taxes, most of them imposed in Canada."
URL is too long, perhaps someone more talented in these matters can post a short link
Also reported in today's ROB, is the scramble travel agents went through last week to avoid having to pay the tax on behalf of tens of thousands of charter tickets associated with cruise and other packages. Since they don't normally pay the carrier money for the charter until two weeks prior to travel, these flights would be subject to the tax unless pre-paid by March 31st.
Thanks for posting the details, AW. Unfortunately, it is written in the usual Department of Finance version of the English language, which means it is incomprehensible to most of us. [Ever tried to complete a corporate income tax form?]
Apr 3, 2002, 6:51 am
#29
Join Date: May 1999
Location: Ottawa
Posts: 8,564
http://makeashorterlink.com/?A60C51F9
andrew
[This message has been edited by Andrew Webber (edited 04-03-2002).]
andrew
[This message has been edited by Andrew Webber (edited 04-03-2002).]
Apr 3, 2002, 9:33 am
#30
Join Date: Sep 2000
Location: YYZ/YHM/BUF
Programs: AA Plat, HH Gold, MR Plat
Posts: 4,212
I believe the US Immigration fees are charged for foreign travel originating in the US. I was charged the fee on a BUF-AUA award ticket. AUA has US Customs pre-clearance facilities like Canada.