The purpose of this policy is to detail the administrative and accounting procedures related to aircraft usage. These procedures ensure the appropriate tax and accounting treatment of both business and personal use of company aircraft by eligible persons in accordance with the company’s policy.
The four areas of primary importance are included in this policy, including 1) imputing income for non-business flights by eligible persons, their family members and guests in accordance with IRS safe harbor rules utilizing Standard Industry Fare Level (“SIFL”) rates; 2) the calculation of any disallowance of tax deduction to the extent required by existing tax law; etc.