CEO pilots face special risks when flying because of increased pressure to accomplish the “mission” or to arrive on time to close a deal. The corporate board of directors should protect the CEO by placing limitations on the CEO’s business and personal flying and by hiring a seasoned, professional pilot to share the flying duties.
An Analysis of the Recent IRS Chief Counsel Advice Asserting that Management Companies are Subject to Transportation Tax
April 6th, 2012 by
On March 9, the IRS Office of Chief Counsel released a Chief Counsel Advice (CCA) which concluded that an aircraft owner who hired a management company to help operate and maintain the aircraft owed transportation tax on the amounts paid to the management company for management and pilot services. This advice is contrary to the official position of the IRS. Although the CCA does not represent the official opinion of the IRS, there has been a growing tendency for IRS auditors to question management company arrangements, and the CCA may exacerbate the problem. In the meantime, management companies and their customers should review their agreements to make sure that they are in compliance with current IRS and FAA requirements.
FAA Notice of Proposed Policy Clarification for the Registration of Aircraft in Owner Trusts
February 17th, 2012 by
Earlier this month the FAA published a Notice of Proposed Policy Clarification for the Registration of Aircraft in Owner Trusts. The Notice focuses on aircraft registered in the name of trustees with non-U.S. citizen trustors/beneficiaries. Comments on the Notice are due to the FAA by March 31, 2012.
Return of the Ramp Check
February 1st, 2012 by
The FAA determined that increasing ramp checks will improve aviation safety, especially for Part 91 pilots. Keep ARROW on board but understand that the required list of items has evolved.
When Was The Last Time You Checked On The Jet?
August 11th, 2011 by
Aircraft operations, like all other aspects of your business, require regular reviews to ensure that they evolve along with the many other facets of your company. If you have not checked on your aircraft’s operations recently, consider reviewing the utilization, registration, liability coverage and applicable tax laws and FARs governing the proposed operation.
FAA Moves to Disallow Blocked Aircraft Information
May 6th, 2011 by
A recent FAA proposal may greatly limit the privacy of your US aircraft operations.
Paying for Personal Use of the Company Aircraft
April 12th, 2011 by
On December 30, 2010, the FAA issued an interpretation which allows a limited exception to the FAA’s decades-long broad prohibition on employees reimbursing the company for personal travel on the company aircraft. As important as what this interpretation allows is what it does not allow.
Personal Flights in Corporate Aircraft
April 4th, 2011 by
Since 1993, the FAA has prohibited executives from reimbursing their companies for personal use of company aircraft. On December 30th, 2010, the FAA Office of Chief Counsel issued a change to Part 91.5019b)(5), the “Schwab Interpretation.” Some, but not all personal travel by executives now meets the conditions for reimbursement.
Letter of Intent
March 8th, 2011 by
The next time you are drafting or reviewing a Letter of Intent, consider this: It is an opportunity to address your most important business points in the way you will want them adressed in the pruchase agreement. Think about the entire deal, not just the price.