Norwegian Govt Tax on Bonuspoints
#46
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There are some European professional services types working out of some no/low income tax jurisdictions in the GCC area who are doing so for the benefit of their European-based affiliates' bosses'/owners' retirement plans after relocation. I doubt airline points are the big consideration in such regard.
#47
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I get the impression that Norway only is changing how you report this, not how much tax you have to pay.
#48
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#49
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It's not something unknown. The Swedish tax authority describes how it works. On the other hand, the Norwegian tax authority explains how you determine the value of the benefit whereas the Swedish tax authority only talks about the value, potentially leaving more room for interpretation (read: it's unpredictable how much tax you will have to pay).
I get the impression that Norway only is changing how you report this, not how much tax you have to pay.
I get the impression that Norway only is changing how you report this, not how much tax you have to pay.
For example, some hotels charge a flat nightly rate of c. 675 SEK for an award night even as the GDS rate for the night for the same kind of room would be 3-5 times higher than 675 SEK. What's the value of the points redeemed for such a night? Some may claim it's even less than the 675 SEK amount since the points can be bought for perhaps as little as 600 SEK.
Last edited by GUWonder; Jan 12, 2019 at 12:51 pm
#50
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But even if the former employer is not bankrupt, what if the employer has a restraining order against contact or communication by the former employee?
Last edited by GUWonder; Jan 12, 2019 at 12:52 pm
#51
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#52
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Here are two articles from the Swedish press published shortly before last year's parliamentary election:
#53
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This was discussed on Norwegian radio the other day, and the leader of the Finance Committee (from the ruling Høyre) seemed a bit unclear on how to set a value on the ticket. I wouldn’t be surprised if there will be changes and/or court cases. Eg, a Eurobonus booking is flexible and can be cancelled.
#54
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This was discussed on Norwegian radio the other day, and the leader of the Finance Committee (from the ruling Høyre) seemed a bit unclear on how to set a value on the ticket. I wouldn’t be surprised if there will be changes and/or court cases. Eg, a Eurobonus booking is flexible and can be cancelled.
#55
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Award bookings are rather restricted and the space made available for them tends to be relatively low value or distressed inventory for the airline, while highly flexible fares that can be cancelled with no penalty or easily rebooked are relatively high value inventory for the airline. And if you saw the reimbursement rates the operating carriers get paid for award tickets by partner airline programs at least, the noted value in real currency terms is pretty low overall when you compare it to even heavily restricted economy class fares booked way in advance.
Read a bit more about the Swedish tax regulation and it seems I have been behind in taxes and social security contributions for years wondering if they will sometime start digging that up. Might be unpleasant for a lot of people. As I worked also for E///, even the big corporations in Sweden obviously have no clue. I can’t imagine E/// HR and finance would miss this?
#56
Join Date: May 2017
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The elected national legislators tend to be rather clueless about the niche areas within the tax compliance regime, but they don’t work in the tax compliance regime like the Admin Courts and Skatteverket do, and that’s why I mentioned the bureaucracy and judiciary rather than the legislature.
#57
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I understand that, but what is the value of the benefit if I book a trip using points? The amount of points required are the same no matter when I book the trip, but the price of the trip goes up the closer we get to the departure. Further with my SAS Mastercard status, I pay the same amount of points whether I fly M or C. How are the authorities going to check what I report is correct?
#58
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#59
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These are all the same issues raised the last time the IRS and then Congress started saber-rattling about roughly the same issue 15+ years ago in the US. In the end, the whole effort fell apart over valuation and administrative burden issues and went away.
If the scheme ever came into force, as here, it would have created a generation of tax cheats and likely cost much more to administer than it would generate in revenue.
If the scheme ever came into force, as here, it would have created a generation of tax cheats and likely cost much more to administer than it would generate in revenue.
#60
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This was discussed on Norwegian radio the other day, and the leader of the Finance Committee (from the ruling Høyre) seemed a bit unclear on how to set a value on the ticket. I wouldn’t be surprised if there will be changes and/or court cases. Eg, a Eurobonus booking is flexible and can be cancelled.