Can a tax be legitimately charged on an airline ticket refund?
I cancelled an airline ticket (non US) and the refund voucher shows and approx. 5% of refund value deducted under the heading of a "Tax".
Can this make sense under any jurisdiction? I am curious. This would be double taxation since I've already paid a Tax when I purchased this ticket.
I just wanted to get an opinion before I waste time following it up with the airline. I did already call them but the fist tier customer service guys obviously were clueless.
Numbers:
Cancel Fees: 8524
Tax: 476
Refund Processing Fee: 800
Convenience Charge: 300
Total Price: 10,100
Is this just some programming flaw where a refund has been entered as a "price" and hence subject to a tax?
(1)1 Comments
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I don't think it's double taxation. First, let's run some numbers without taxes: say your ticket cost 0 and the fee is , you get a refund of .
Now in a world of 5% sales taxes, your ticket costs 5 total. They charge .50 for the fee plus tax, and give you back .5, which is the same as + tax.
Assuming the total that they subtracted these fees from is your original price plus tax, this seems fair to me.
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