- Mar 29, 2006
Here's how Citi bruised recipients on FF points by creating a tax liability:
Tax Court Sides With IRS In Tax Treatment Of Frequent Flyer Miles Issued By Citibank - Forbes
This is USA court matter.
"... resulting in the inadvertent destruction of the loyalty scheme system?
Is this an unintended consequence or a well thought out strategy. Consider how much banks spend on FF miles, mostly to be competitive with other banks. If no one could issue miles without consequences, how much money would they save by not issuing any?