Frequent Flyer Miles as Company Scrip: Implications on Taxation

Business Studies Journal, 7(1)

23 Pages Posted: 10 Apr 2014 Last revised: 19 Nov 2014

Jeffrey A. Mankin

Lipscomb University - Department of Accounting, Finance & Economics

Jeffrey Jay Jewell

Lipscomb University

Date Written: April 8, 2014

Abstract

Frequent flyer programs encourage airline brand loyalty by customers. These popular programs have been the subjects of much discussion on whether or not the frequent flyer miles received by customers are taxable. Although many scholars favor taxing the miles, we propose that there are considerable problems of timing and valuation. Therefore, the frequent flyer miles should not be taxed.

Keywords: airline miles, frequent flyer miles, tax

JEL Classification: L93, H20, E40

Suggested Citation

Mankin, Jeffrey A. and Jewell, Jeffrey Jay, Frequent Flyer Miles as Company Scrip: Implications on Taxation (April 8, 2014). Business Studies Journal, 7(1). Available at SSRN: https://ssrn.com/abstract=2422603

Jeffrey A. Mankin (Contact Author)

Lipscomb University - Department of Accounting, Finance & Economics ( email )

One University Park Drive
Nashville, TN 37204-3951
United States

HOME PAGE: http://www.lipscomb.edu

Jeffrey Jay Jewell

Lipscomb University ( email )

College of Business
One University Park Drive
Nashville, TN TN 37204
United States
6159665769 (Phone)

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