FedEX HKG LOA is out, and boy is it funny...

[jonjuan]

Mod-Cargo board please.....thanks.

 

[FlyBoeingJets]

So you are saying FDX would rather pay more in tax by taking the exclusion away? Also, who cares what the LOA says re taxes and equalization..not addressed specifically just as an addendum to the contract. My point is why would they choose to file a return for you without the exclusion. Even so, this does not preclude your rights under federal law to give up a legal exclusion.

When FedEx's contracted accounting firm does your taxes, they can still use the exclusion. FedEx is merely comparing what you would pay to the U.S. vs. what you would pay HKG. FedEx pays the difference. The question I have is will your tax burden in HKG be less or more than if you were in the States?

You ask who cares what the LOA says about taxes and equalization. Everyone involved does. You agree to the equalization benefit (or penalty if you would owe less in HKG) by signing the individual contract that is specified in the LOA.

Tax equalization is just one plan or benefit to offer American's working overseas for American companies. FedEx could have offered the lesser of HKG or US taxes, higher compensation to adjust for higher taxes, etc. They apparently did not.

And, yes, you are giving up your right to the exclusion. But that is only toward U.S. taxes, if I am not mistaken. FedEx is also taking your higher Paris tax rate and paying it. That's the whole point of the LOA individual contract and FedEx paying the higher of the two taxes.

Although I think the equalization is a benefit, I don't have any facts about foreign taxes to make that call with certainty. No info from ALPA or the company. That lack of info, and STV, is enough to vote no.

 

[DiamondZ]

Mod-Cargo board please.....thanks.

jonjuan...your Delta Tau Chi name is

Thread Nazi

 

[Phaedrus]

or Bud Inski....

 

[Huck]

A/C Flown: C-150,DA20,CE550

Mods, corporate board please.

 

[CommanderHoek]

I'd be willing to bet

That there would be loads of people/American's working already for a certain airline/airlines in HKG that would take this in a New York minute. One man's trash is another man's treasure. To work for a true American icon would be a sitiuation only some could dream of. It may seem like a bad deal but if you only knew how bad it could be. A300 in HKG or 757 in CDG, one can only dream. Jo tau!