Taxes on Freq Flyer Awards??

[bat21]

This is a US article and I cant see it ever happening however Bank's are gaining more power within Australia and are catching up to their US counterparts very quickly as the recent decision by some of the big 4 to now set interest rates outside of the RBA's monthly recommendations. If it ever came about, a lot of people would lose a lot of those letters off their profiles including me!

A New Legal Interpretation May Require You To Pay Taxes On Frequent Flier Miles

 

[deejo77]

Go to ato.gov.au and go to the legal database - search for TR 1999/6 and PSLA 2004/4 (GE) - they both talk about the taxation of FF points - the PSLA at para 7 is very clear on when it should be escalated to a STL for a review (this appears to mean they are going to look at you)

. The PSLA is very clear at para 7:


7. Cases should be referred to a senior technical leader for review where, on consideration of those principles and this practice statement, a reward that is received under a consumer loyalty program is considered to be assessable income or a fringe benefit because:

· the arrangement is so contrived and artificial that it has no commercial purpose other than to allow the recipient to receive the rewards to which they become entitled, and/or · the nature of the arrangements suggest that the rewards are being received in substitution for income which would otherwise be earned, and/or · the points accumulated from a business relationship or business expenditure exceed 250 000 points per annum.​

Administrative action is only considered warranted in cases that meet the above stated criteria.