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
Date Written: April 8, 2014
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: Suggested Citation