BD Tax Accountability/Transparency Thread
Mar 23, 2008, 3:07 pm
#1
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Join Date: Apr 2000
Location: Cleveland
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Posts: 5,054
BD Tax Accountability/Transparency Thread
I think its important that we understand the tax calculations that BD makes when charging us for award tickets.
In theory, their taxes should never be more than ITA Software which already takes into account things like fuel surcharges, premium class surcharges, etc.
If anything, taxes should only be LESS than ITA Software since ITA bases its taxes on PAID tickets and award tickets should ostensibly be based on a $0 fare basis.
Postings should be straightforward:
1. Find your itin on ITA Software and click to the 'detail' section to find the ticket price breakdown by fare and taxes/surcharges.
2. Paste itin and ticket price breakdown onto a post.
3. Post the taxes (excluding any cash/miles charges) that BD is quoting.
Let's see if we can pick up any discernable patterns of calculation issues.
And let's see if such issues do indeed exist, let's use the OBJECTIVE ammunition of ITA Software to lobby for recalculations (or at worst, justifications for the BD calaculations) where appropriate.
In theory, their taxes should never be more than ITA Software which already takes into account things like fuel surcharges, premium class surcharges, etc.
If anything, taxes should only be LESS than ITA Software since ITA bases its taxes on PAID tickets and award tickets should ostensibly be based on a $0 fare basis.
Postings should be straightforward:
1. Find your itin on ITA Software and click to the 'detail' section to find the ticket price breakdown by fare and taxes/surcharges.
2. Paste itin and ticket price breakdown onto a post.
3. Post the taxes (excluding any cash/miles charges) that BD is quoting.
Let's see if we can pick up any discernable patterns of calculation issues.
And let's see if such issues do indeed exist, let's use the OBJECTIVE ammunition of ITA Software to lobby for recalculations (or at worst, justifications for the BD calaculations) where appropriate.
Mar 23, 2008, 3:09 pm
#2
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Sample
Fare (A1): UA CLECHI TA14AN fare (rules) $66.05
Tax: US Transportation Tax $4.95
Fare (B1): UA CHISLC LA7N8 fare (rules) $106.05
Tax: US Transportation Tax $7.95
Fare (C1): UA SLCDEN LA7N8 fare (rules) $45.58
Tax: US Transportation Tax $3.42
Fare (D1): UA DENCLE TA14ZAN fare (rules) $101.40
Tax: US Transportation Tax $7.60
Tax: US September 11th Security Fee $10.00
Tax: US Passenger Facility Charge $18.00
Tax: US Flight Segment Tax $14.00
--------------------------------------------------------------------------------
Total for 1 adult passenger: $385.00
Itin: CLE-ORD-SLC; SLC-DEN-CLE in Y
ITA: total taxes: $67
BD: total taxes: $180
Tax: US Transportation Tax $4.95
Fare (B1): UA CHISLC LA7N8 fare (rules) $106.05
Tax: US Transportation Tax $7.95
Fare (C1): UA SLCDEN LA7N8 fare (rules) $45.58
Tax: US Transportation Tax $3.42
Fare (D1): UA DENCLE TA14ZAN fare (rules) $101.40
Tax: US Transportation Tax $7.60
Tax: US September 11th Security Fee $10.00
Tax: US Passenger Facility Charge $18.00
Tax: US Flight Segment Tax $14.00
--------------------------------------------------------------------------------
Total for 1 adult passenger: $385.00
Itin: CLE-ORD-SLC; SLC-DEN-CLE in Y
ITA: total taxes: $67
BD: total taxes: $180
Mar 23, 2008, 5:34 pm
#3
Join Date: Nov 2007
Location: BOS
Programs: AA Exec Plat, UA 1K, BA Gold, AF Plat, Hilton Diamond, Marriot Plat
Posts: 303
OP, please put the IATA link so that it is more convenient for newbies to search for fares (Link) Think that this is a good thread as I highly mistrust BD's calculation of taxes too 
If possible, for all those who have sucessfully redeemed flights with DC, please supplement your post in the Please report your successful redemptions using Diamond Club miles thread with ONLY the taxes (excluding the cash part if you're using miles + cash) portion here.
Fare (A1): LH NYCDUS F fare (rules) $6065.00
Fare (B1): LH DUSMAD COW fare (rules) €886.00
Tax: US September 11th Security Fee $2.50
Tax: US International Departure Tax $15.40
Tax: US Passenger Facility Charge $4.50
Tax: German Passenger Service Charge €9.14
Tax: LH YQ surcharge $110.00
Itin: EWR-DUS-MAD (F, J)
ITA: total taxes: USD 132.40 + €9.14
BD: total taxes: USD 140.88
If possible, for all those who have sucessfully redeemed flights with DC, please supplement your post in the Please report your successful redemptions using Diamond Club miles thread with ONLY the taxes (excluding the cash part if you're using miles + cash) portion here.
Fare (A1): LH NYCDUS F fare (rules) $6065.00
Fare (B1): LH DUSMAD COW fare (rules) €886.00
Tax: US September 11th Security Fee $2.50
Tax: US International Departure Tax $15.40
Tax: US Passenger Facility Charge $4.50
Tax: German Passenger Service Charge €9.14
Tax: LH YQ surcharge $110.00
Itin: EWR-DUS-MAD (F, J)
ITA: total taxes: USD 132.40 + €9.14
BD: total taxes: USD 140.88
Last edited by ultrasoul; Mar 23, 2008 at 5:51 pm
Mar 23, 2008, 5:49 pm
#4
Join Date: Nov 2007
Location: BOS
Programs: AA Exec Plat, UA 1K, BA Gold, AF Plat, Hilton Diamond, Marriot Plat
Posts: 303
Fare (A1): LH BCNNYC F5 fare (rules) €6807.60
Tax: Spanish Security Tax €1.61
Tax: Spanish Airport Services Charge €4.45
Tax: Swiss Airport Passenger Security & Noise Charge CHF 14.50
Tax: Danish Passenger Service Charge DKK 122
Tax: US International Arrival Tax $15.40
Tax: German Passenger Service Charge €11.73
Tax: German Airport Security Tax €6.55
Tax: US Customs Fee $5.50
Tax: US Immigration Fee $7.00
Tax: USDA APHIS Fee $5.00
Tax: LH YQ surcharge $85.00
BCN-GVA-CPH-FRA-EWR (J, J, J, J, F)
ITA: total taxes: USD 196.60
BD: total taxes: USD 196.20
Tax: Spanish Security Tax €1.61
Tax: Spanish Airport Services Charge €4.45
Tax: Swiss Airport Passenger Security & Noise Charge CHF 14.50
Tax: Danish Passenger Service Charge DKK 122
Tax: US International Arrival Tax $15.40
Tax: German Passenger Service Charge €11.73
Tax: German Airport Security Tax €6.55
Tax: US Customs Fee $5.50
Tax: US Immigration Fee $7.00
Tax: USDA APHIS Fee $5.00
Tax: LH YQ surcharge $85.00
BCN-GVA-CPH-FRA-EWR (J, J, J, J, F)
ITA: total taxes: USD 196.60
BD: total taxes: USD 196.20
Mar 23, 2008, 5:56 pm
#5
Join Date: Nov 2007
Location: BOS
Programs: AA Exec Plat, UA 1K, BA Gold, AF Plat, Hilton Diamond, Marriot Plat
Posts: 303
Fare (A1): UA TYOTPE YX4OW fare (rules) ¥86400
Tax: Japan International Passenger Facility Charge ¥2040
Tax: UA YQ surcharge ¥7000
NRT-TPE in Y
ITA: total taxes: USD 92.90
BD: total taxes: USD 92.20
Tax: Japan International Passenger Facility Charge ¥2040
Tax: UA YQ surcharge ¥7000
NRT-TPE in Y
ITA: total taxes: USD 92.90
BD: total taxes: USD 92.20
Mar 23, 2008, 6:01 pm
#6
Join Date: Nov 2007
Location: BOS
Programs: AA Exec Plat, UA 1K, BA Gold, AF Plat, Hilton Diamond, Marriot Plat
Posts: 303
Fare (A1): YY TPESIN C fare (rules) TWD 23851
Fare (A2): YY SINTPE C fare (rules) TWD 23851
Tax: Taiwanese Airport Service Tax TWD 300
Tax: Singapore Passenger Service Charge SGD 21
Tax: SQ YQ surcharge $160.00
TPE-SIN in C
ITA: total taxes: USD 184.90
BD: total taxes: USD 184.19
Fare (A2): YY SINTPE C fare (rules) TWD 23851
Tax: Taiwanese Airport Service Tax TWD 300
Tax: Singapore Passenger Service Charge SGD 21
Tax: SQ YQ surcharge $160.00
TPE-SIN in C
ITA: total taxes: USD 184.90
BD: total taxes: USD 184.19
Mar 23, 2008, 6:06 pm
#7
Join Date: Nov 2007
Location: BOS
Programs: AA Exec Plat, UA 1K, BA Gold, AF Plat, Hilton Diamond, Marriot Plat
Posts: 303
Fare (A1): SQ NYCSIN EKMEWR fare (rules) , psgr type ADT $700.00
Fare (A2): SQ SINNYC EKMEWR fare (rules) , psgr type ADT $700.00
Tax: US September 11th Security Fee $2.50
Tax: US International Departure Tax $15.40
Tax: US Passenger Facility Charge $4.50
Tax: US International Arrival Tax $15.40
Tax: Singapore Passenger Service Charge SGD 21
Tax: US Customs Fee $5.50
Tax: US Immigration Fee $7.00
Tax: USDA APHIS Fee $5.00
Tax: SQ YQ surcharge $256.00
EWR-SIN-EWR in Y
ITA: total taxes: USD 326.50
BD: total taxes: USD 328.40
Fare (A2): SQ SINNYC EKMEWR fare (rules) , psgr type ADT $700.00
Tax: US September 11th Security Fee $2.50
Tax: US International Departure Tax $15.40
Tax: US Passenger Facility Charge $4.50
Tax: US International Arrival Tax $15.40
Tax: Singapore Passenger Service Charge SGD 21
Tax: US Customs Fee $5.50
Tax: US Immigration Fee $7.00
Tax: USDA APHIS Fee $5.00
Tax: SQ YQ surcharge $256.00
EWR-SIN-EWR in Y
ITA: total taxes: USD 326.50
BD: total taxes: USD 328.40
Last edited by ultrasoul; Mar 23, 2008 at 6:14 pm
Mar 23, 2008, 6:13 pm
#8
Join Date: Nov 2007
Location: BOS
Programs: AA Exec Plat, UA 1K, BA Gold, AF Plat, Hilton Diamond, Marriot Plat
Posts: 303
Fare (A1): US GSPEWR WXA0NA2 fare (rules) , psgr type ADT $320.00
Tax: US Transportation Tax $24.00
Tax: US September 11th Security Fee $5.00
Tax: US Passenger Facility Charge $3.00
Tax: US Flight Segment Tax $7.00
ITA: total taxes: USD 39
BD: total taxes: USD 120!
GSP-CLT-EWR in Y
I guess I struck gold here: intra-US redemptions seem to be wildly inflated
Other redemptions (intra-EU, intra-Asia, transatlantic; see above) match ITA's; only this one doesn't!
Tax: US Transportation Tax $24.00
Tax: US September 11th Security Fee $5.00
Tax: US Passenger Facility Charge $3.00
Tax: US Flight Segment Tax $7.00
ITA: total taxes: USD 39
BD: total taxes: USD 120!
GSP-CLT-EWR in Y
I guess I struck gold here: intra-US redemptions seem to be wildly inflated
Other redemptions (intra-EU, intra-Asia, transatlantic; see above) match ITA's; only this one doesn't!
Mar 23, 2008, 7:03 pm
#10
Original Poster
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Location: Cleveland
Programs: AF/KLM Plat For Life/UA Million Miler-PremEx For Life/SPG Gold
Posts: 5,054
Fare (A1): LH NYCIST DOE fare (rules) $3933.00
Tax: US September 11th Security Fee $2.50
Tax: US International Departure Tax $15.40
Tax: US Passenger Facility Charge $4.50
Tax: German Passenger Service Charge €11.73
Tax: LH YQ surcharge $110.00
--------------------------------------------------------------------------------
JFK-FRA-IST in J
Total for 1 adult passenger: $4083.90
ITA Taxes: $155
BD taxes: $276
Tax: US September 11th Security Fee $2.50
Tax: US International Departure Tax $15.40
Tax: US Passenger Facility Charge $4.50
Tax: German Passenger Service Charge €11.73
Tax: LH YQ surcharge $110.00
--------------------------------------------------------------------------------
JFK-FRA-IST in J
Total for 1 adult passenger: $4083.90
ITA Taxes: $155
BD taxes: $276
Mar 23, 2008, 7:32 pm
#11
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Join Date: Apr 2001
Location: PSM
Posts: 69,232
It seems that BD is adding YQ fuel surcharges for itineraries that start in the USA and would otherwise not be subject to them as tickets can't be sold that way here. At least that is the impression I get from looking at the details posted thus far.
Mar 23, 2008, 7:52 pm
#12
Join Date: Feb 2003
Location: Berkeley, CA
Posts: 2,290
LHR-FRA-PDX, J
PDX-YVR, Y
Total amount: £236.20
Actual BD charge: £228.60
PDX-YVR, Y
Code:
Tax: United Kingdom Passenger Service Charge £17.60 £17.60 Tax: United Kingdom Air Passengers Duty £80.00 £80.00 Tax: US International Arrival Tax $15.40 £7.78 Tax: German Passenger Service Charge €11.73 £9.13 Tax: German Airport Security Tax €6.55 £5.10 Tax: US Customs Fee $5.50 £2.78 Tax: US Immigration Fee $7.00 £3.54 Tax: USDA APHIS Fee $5.00 £2.53 Tax: LH YQ surcharge €110.00 £85.61 Tax: US September 11th Security Fee $2.50 £1.26 Tax: US International Departure Tax $15.40 £7.78 Tax: AC YQ surcharge C$22.00 £10.82 Tax: US Passenger Facility Charge $4.50 £2.27
Actual BD charge: £228.60
Mar 23, 2008, 8:10 pm
#13
Original Poster
Join Date: Apr 2000
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Posts: 5,054
Fare (A1): LH ISTFRA C fare (rules) €795.00
Fare (B1): LH FRABOM FOW4 fare (rules) €4043.00
Tax: Turkish Int'l Airport Service Charge $15.00
Tax: German Passenger Service Charge €11.73
Tax: LH YQ surcharge $110.00
--------------------------------------------------------------------------------
Total for 1 adult passenger: $7751.50
Total Tax: $147
BD Tax: $283
Fare (B1): LH FRABOM FOW4 fare (rules) €4043.00
Tax: Turkish Int'l Airport Service Charge $15.00
Tax: German Passenger Service Charge €11.73
Tax: LH YQ surcharge $110.00
--------------------------------------------------------------------------------
Total for 1 adult passenger: $7751.50
Total Tax: $147
BD Tax: $283
Mar 23, 2008, 10:10 pm
#14
Join Date: Sep 2006
Location: Arrecife
Programs: BA Silver, TK Silver, HH Diamond, IHG Plat AMB
Posts: 2,441
I always check on the airlines website if its a single airline redemption to gain an idea before I call up.
The tax calculation on Lufthansa flights I've always found to be correct.
For example, as a comparison to some of the examples here.....
IST-FRA-BOM
£101.00
JFK-FRA-IST
£104.60
The tax calculation on Lufthansa flights I've always found to be correct.
For example, as a comparison to some of the examples here.....
IST-FRA-BOM
£101.00
JFK-FRA-IST
£104.60
Mar 24, 2008, 12:02 am
#15
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Furthermore, I do not trust an ITA calculation for tickets issed in USD. If we want to compare we need to put in LON on ITA as place of issue. I believe (= have no evidence) that BD issues tickets in LON and converts the taxes from GBP into USD. This again results in a different tax portion since certain taxes (YQ again) are higher for tickets issued in the UK than they are for tickets issued in the US (One reason for me to have all my German LH domestic tickets to be issued by LH USA).