refund of taxes on canceled ticket
#1
Original Poster
Join Date: Nov 2004
Posts: 18
refund of taxes on canceled ticket
I know the Contract of Carriage says otherwise, but can an airline legally refuse to refund the taxes on a voluntary cancellation? After all, the feds only collect money from the airline for passengers who actually board the plane. I'm not a lawyer, but isnt charging someone for "tax" and then using that money for another purpose (since the passenger didnt take the flight) constitute fraud?
Believe it or not, I complained about this scenario to DOT regarding a flight I didnt take and the airline did actually issue me a refund of the taxes
Believe it or not, I complained about this scenario to DOT regarding a flight I didnt take and the airline did actually issue me a refund of the taxes
#2
Moderator: United Airlines
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What were the circumstances of the cancellation? Gald you were successful in getting the full refund.
I would agree unless the money has transferred out of UA's hands, a full refund is due.
#3
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,406
Personally I have never not been refunded entire original amount on a voluntary This include paid and award tickets. Although then there may have been a cancellation fee and for non-refundable fares, the fee was as an ETC.
What were the circumstances of the cancellation? Gald you were successful in getting the full refund.
I would agree unless the money has transferred out of UA's hands, a full refund is due.
What were the circumstances of the cancellation? Gald you were successful in getting the full refund.
I would agree unless the money has transferred out of UA's hands, a full refund is due.
Furthermore, under the OP's interpretation, you would be eligible for an actual refund of the taxes, as opposed to an ETC to be applied toward future travel.
OP: Here is a GAO report that summarizes the US position: https://www.gao.gov/new.items/d10785.pdf . Essentially, the IRS has claimed that the transportation tax included as part of the ticket price is non-refundable. The $5.60 "security fee" likely is refundable, although there's no mechanism available by which to get that refund from DHS. Customs and immigration fees may also be refundable, if your ticket is international, and taxes paid to other governments would depend upon the law for each jurisdiction. PFCs on non-refundable tickets are expressly not refundable: https://www.law.cornell.edu/cfr/text/14/158.45 (14 CFR 158.45 (a)(3)(ii)
The best place for follow up isn't with United, but rather with your congressman.
#5
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In the UK, for example, BA will refund your taxes even on a nonrefundable ticket. I'm sure they're not doing that out of the goodness of their hearts.
#6
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#7
Every airline in Europe do that, but with LCCs will be a bit more difficult (have to call their callcenter - not free - so makes no sense to try to get that taxes back because your phone will be way higher than the money they owe you)
#8
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Join Date: Jul 2003
Posts: 23,057
I know the Contract of Carriage says otherwise, but can an airline legally refuse to refund the taxes on a voluntary cancellation? After all, the feds only collect money from the airline for passengers who actually board the plane. I'm not a lawyer, but isnt charging someone for "tax" and then using that money for another purpose (since the passenger didnt take the flight) constitute fraud?
Believe it or not, I complained about this scenario to DOT regarding a flight I didnt take and the airline did actually issue me a refund of the taxes
Believe it or not, I complained about this scenario to DOT regarding a flight I didnt take and the airline did actually issue me a refund of the taxes
Last edited by xliioper; May 3, 2018 at 7:26 am
#9
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Which taxes were refunded? Sounds like an error by a carrier which doesn't bother reading the paperwork on minor claims.
Your assertion that the "feds only collect money from the airline for passengers who actually board the plane" is rubbish. Where did you get that? In the US, the taxes are collected by the carrier and paid over to the US Treasury which credits them as approrpriate, e.g. PFC and te like. Those payments are relatively frequent and, unless you paid yesterday, have been paid to the US long before you board your flight.
As others note, there is a strong argument that the Treasury should refund these taxes, but there is no mechanism and any concerted effort in this regard will simply lead to action to make them non-refundable.
Glad you got your money in errror, but don't mistake that for some sort of precedent.
Your assertion that the "feds only collect money from the airline for passengers who actually board the plane" is rubbish. Where did you get that? In the US, the taxes are collected by the carrier and paid over to the US Treasury which credits them as approrpriate, e.g. PFC and te like. Those payments are relatively frequent and, unless you paid yesterday, have been paid to the US long before you board your flight.
As others note, there is a strong argument that the Treasury should refund these taxes, but there is no mechanism and any concerted effort in this regard will simply lead to action to make them non-refundable.
Glad you got your money in errror, but don't mistake that for some sort of precedent.