4A2B

Not sure how you do that math, but there is no profit taking on equalization? Did you not read the post by an actual HKG pilot saying his tax bill was outrageous and he was glad he did not have to pay it?

As others have said, if FDX had forced tax equlaization for the SFS base it your statement would be true, just taking money out of their pockets. In the case of any other foreign location that we currently base, HKG, the pilots there have all said they would be worse off if they did not have equalization.

Hate to call you out on your facts, but I look forward to you providing real information on the truthfulness of your post. I does not match what I have heard and read on this website and VERIFIED with actual discussion with ALPA staff.

Busboy

Just curious...If you're based in HKG, but don't live there...What and who taxes you?

Chuck Turpen

GreaseA6, I understand the purpose of Equalization. I think that from Cujo's post and the lack of complaints from others in HKG that it is preferable to the alternative.

However this post from MayDay Mark and the accusing question asked in the MEC meeting sent me on a numbers hunt.

MaydayMark on what information did you make this determination?

Thanks

MaydayMark

Chuck,

Will be glad to furnish actual tax $$ numbers but do tell, do you have a dog in this fight (or are you a management plant)?

MM

Chuck Turpen

I left management in Mar 2009. While I was in management and out I always spoke my mind and tried to discern the facts.

I have a lot of friends in management and have high respect for them and the job they do for us.

I also have high respect for those in leadership in our union and appreciate the job they do for us. Told them so on Thurs.

So it bothers me when guys call "O" an idiot and when they say the MEC Chairman is trying to pull af fast one on us.

I am of the opinion that if one had to sign their real name and be accountable for their posts that this Forum would be a lot shorter.

Yes I do have a dog in this fight. I have recommended a couple of fine aviators that I hope will be joining our ranks soon. Both glad to have the job and a FDA assignment.

Now your turn.

The numbers please.

PS you probably already know I'll vote for the TA but let's save that for another thread.

GreaseA6

Well just out of curiosity I looked at my previous tax returns to see what I could see. Although there is a comprehensive Hong Kong form on what our liability is I can find no such paperwork for the mainland. So either I'm missing it, didn't do it, or it ain't there because the company takes care of it without our input. Don't know, but it would be hard to defend an argument one way or the other without it.

BTW I too had to pay a hefty amount to the IRS, but that was a function of a too low hypo withholding. Hopefully they fixed that this year.

iarapilot

I do not know what the exact calculations are. My point was that any FDA can be opened up by the Company. And, the FDA in HKG can be done under the current section 6, plus tax equalization. That was it.

My personal opinion on tax equal is that the Company needed it for HKG and CDG, and I think we should have negotiated something where the pilot could reap a benefit from their right under the tax code. FedEx was the one who needed the FDA; we had some leverage. Hopefully I have been a little clearer. You would have to ask an HKG pilot if it works to their advantage.

Chuck Turpen

IR

Thanks, that does clarify your statement.

After speaking with a member of the negotiating committee it is my opinion that Tax Eq is a good deal for the pilot. Without it no one could afford to bid the FDA. I also believe that it costs the company plenty to provide it and the tax benifit we gave up under the IRS in no way would offset Equilization.

MaydayMark is going to give us the formula or explain how the Company is making a windfall off of this so we'll wait and see

Leverage and negotiating I'd be happy to disscuss too. But lets keep this thread on Tax Eq. Once we can define the worth of the pieces to the puzzle then we can start to add them up to come up with their leverage and importance.

kronan

There are two ways of going with taxes. Tax equalization (which apparently most larger companies go with--so, have to wonder if PWC advised FedEx if this was the way to go, and if doing so makes PWC a bit more money) or Tax protection, where employees might gain a bit depending on their tax situation.

Pros+Cons to both from the Mgt side. No idea how other FedEx expat employees are treated, but, I'd venture a guess Tax Equalization is how FedEx went.

Tax Equalization Versus Tax Protection: Which Tax Reimbursement for an Expatriate Assignment is Fairer?

FXDX

Every friggin dime of taxes that might be due to a foreign country ought to be paid for by the company that places a worker there. Period. If that is too much for the company to bear while allowing the worker the benefits of the US tax exemption, then the company ought to be prepared to pay for all the deadhead tickets and inefficiencies that SIBA operations present.

The pilots should not be funding the company's expansion into foreign countries.