KiwiRob

GUWonder

Im a new user

Adding FFP number later: I don't know about Norwegian employers, but some Nordic employers may ask for paper boarding passes as evidence that you are not fraudulently seeking compensation for the same trip from multiple employers. This collection of boarding passes was required under earlier taxation legislation, if I remember correctly. If the employer asks for a paper boarding pass, then the boarding pass probably shouldn't mention that you are a member of an FFP.

Requesting points after completing the trip: Probably works better, but it may be difficult to use some status benefits if the FFP number can't be added to the booking until after disembarkation.

Pay attention to two rulings in kammarrätten in Stockholm a bit over a decade ago. In case 2058-05, SAS was forced to disclose data about certain named Eurobonus members on behalf of the Swedish tax authority. Same thing in case 4479-06, except that it was on behalf of the Finnish authorities. If Skatteetaten asks for info through Swedish courts, expect trouble if you have earned points which your employer is unaware of.

RedChili

Banning employees from earning points seems quite stupid. If you travel without being a member of an FF program, during IRROPS you'll be at the end of the line for the next available flight. The employer could end up losing a lot.

The new tax rules don't mean anything for earning points, only for using points.

In today's world, anybody can check in and print a boarding pass at home, and then check in a second time, apply a frequent flyer number, and print a second boarding pass with the FF number on it. Give one to the employer and use the other for travel. The employer will never know that you have earned any points.

The tax authorities can probably demand such evidence from an airline based in the same country, but your employer cannot demand such evidence. Anyway, any employee in Scandinavia can easily join MS, ET, OZ or NZ if they so prefer. There are so many Star Alliance FF programs that it's impossible for the tax authorities to demand evidence from all of them, and many of them don't even have an office in Scandinavia.

another_shot

I remember something similar was discussed a few years ago in a context of miles earned into private account while flying on a company paid ticket for Scandinavian residents - I believe there were some tax implications on that? Is it a different situation or just the same question?

Often1

The whole boarding pass issue is just make work. Anyone motivated can generate a boarding pass without a number, add the number and then generate a new pass. It is just asking for widespread petty fraud.

CPH-Flyer

Same topic. Points earned on company travel and used for private purposes are considered a taxable benefit. In Denmark it pops up as a topic from time to time that the tax authorities should enforce this fully. The end conclusion is that the effort and cost does not stand to reason with taxes reaped

The Danish government does not allow employees to collect points on staff travel, but my impression is that retro claims are rampant. I have heard of companies contemplating banning it, but I have not heard about any actually doing it.

Not sure if there has been a recent storm in the water cup in Norway recently .....

Im a new user

It seems that Norway changed a law on tax reporting of FFP benefits on the first of January which may have started a debate. I don't know exactly what they changed.

CPH-Flyer

They probably did what pops up in Denmark from time to time, make it a compulsory filing for the companies. Problem is of course earning and using for company purposes would not be a taxable benefit, say upgrading a company flight. So it is really a mess to deal with

I guess the bureaucrats in Norway relealised they would need even more paper pushers to manage this....

RedChili

There's a new law/rule/whatever which basicaly requires all employers to keep track on what all employees use miles for if they were earned for company money. This is a great enhancement for doing business in Norway.

CPH-Flyer

In Norwegian:

https://www.thetravelinspector.no/news/skatteregler-bonuspoeng

Seems that it is enough for companies to ban private use of points earned on corporate travel, and have sanctions in place for violations. The onerous of being able to document compliance would then rest with the employee, and sanctions for violations or lack of ability to document would also fall on the employee.

I stil think the cost of this compared to the tax revenue gained means that it should be rule honoured more in breach than observance. But I guess the concept of "millimeter demokrati" is stronger in Norway than in Denmark. So far....

GUWonder

Im a new user

Furthermore, some points may have been earned from private trips (and so aren't to be taxed) while points earned from business trips may have been used for booking business trips or for upgrading a business trip (and so aren't to be taxed either). Also, they won't have a clue about how you earned or spent your CA Star Alliance points, your SU Skyteam points or your UL Oneworld points.

What happens if a Norwegian person books an award ticket for business purposes using privately earned points? Tax refund?

CPH-Flyer

As a company it is not about compelling employees to rat on themselves to use that terminology. It is about getting the necessary disclosure completed with the minimum effort. Which is either banning the accrual of points on corporate travel, or banning the use of the points for personal use. Everything else is a mess for the company, and it even costs the company money when the employee use the points privately.

Can the employee circumvent the rules, of course they can. But if the rules are made correctly, that is a point between the employee and the tax authorities.

There is no doubt that the points are a taxable benefit in Norway and have been for a long while, this applies to Denmark and Sweden as well. I would imagine that in a number of other countries it would be the case as well. The new thing is that the Norwegian government has chosen to pursue this. If they start generating a reasonable tax revenue from this, be prepared for this to come up again in Sweden and Denmark as well.

From a data analytics perspective, it is not that big dumps that are needed, it is pretty straightforward. For SK and DY no doubt the tax authorities can get the information needed, for EU Airlines I would expect that they can get it as well. For airlines outside the EU, I doubt it would be possible. Or at least require advance evidence of tax evasion, which they won't have as they are asking for the data to build the evidence.

Dont take this as me defending the change, I doubt that they will get any significant revenue from it, and certainly not in relation to the administrative burden that they create for themselves for companies, and for the employees. However as with all taxation performance measurement is only about what they can claw in, not the efforts and costs applied in doing so.

fassy

As far as I know Lufthansa (and other customer loyalty programs) settled this with the German tax authorities by paying tax on points on behalf of the customer. In Germany it was around 2,25% of the reported value per awarded mile.