Ongoing Scrutiny of Corporate Aviation
Heavy executive use of corporate aircraft is a subject of recurring scrutiny from the media, Congress, and investor advocate groups. That scrutiny has expanded the complexity of our industry’s reporting requirements:
The American Jobs Creation Act of 2004 impacts the deductibility of aviation expenses and requires a new layer of passenger records.
The FAA allows reimbursements under the “Nichols Interpretation,” but with strings attached.
The 2017 Tax Cut and Jobs Act extends bonus depreciation, but eliminates deductions for commuting and business entertainment.
The SEC penalizes a Fortune 50 company for $1.75 million for failing to properly disclose personal aircraft use, and the FAA proposes a $3.3 million penalty against a US-based corporate flight department for improper use of Time Sharing Agreements.