Corporate Compliance
& GRC

Additional Solutions
Download "Corporate Aviation and GRC"
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  • Corporate Compliance for Business Jets
    Governance, Risk Management & Compliance ("GRC"):
    SEC & IRS Reporting for Corporate Aircraft & Business Jets

    Recently, the Wall Street Journal ran "Corporate Jet Set: Leisure vs. Business", identifying flaws in SEC filings of major companies regarding their corporate jets. They also released WSJ Jet Tracker, displaying the flight history for all corporate aircraft (even blocked tails).

    Common Failure Scenario: Corporate tax and accounting staff are often unaware of specialized reporting required by corporate aircraft, while the flight department may presume these responsibilities are addressed at the corporate level. Such oversights create significant exposure for the company, as learned by the companies above.

    Download the Aviation Compliance Primer at left to learn the impact of your aviation department on corporate reporting. Updated IRS and SEC regulations require improved disclosures:

    Key GRC Topics
    • SEC & Proxy Disclosures
    • Named Executive Officers
    • Fringe Benefit Income (SIFL)
    • IRS Expense Disallowance
    • Related-Party Transactions
    • Excise Taxes
    • FAA Compliance
    • Sarbanes - Oxley
    Departments Impacted
    • Corporate Aviation
    • Tax and Accounting
    • Internal Audit
    • HR & Payroll
    • Executive Compensation
    • Financial Reporting
    • Corporate Travel
  • Avoid Broken Reporting Processes
    Avoid Broken Reporting Processes

    Operating business jets within a corporate environment creates significant compliance requirements. Major corporations still overlook aviation compliance regulations on a regular basis. See "Common Reporting Failures in the Fortune 1000".

    In addition, management vital compliance information with paper flight logs, spreadsheets and unofficial databases creates unacceptable risks for your company.

    For an SEC Registrant, the following compliance items will typically be required:

    • Proxy disclosure of compensatory/personal aircraft use provided to named executive officers, using the SEC's 'incremental cost" method of valuing the flights provided.
    • IRS Entertainment Disallowance of operating expenses and depreciation for use of the aircraft by specified individuals. (Many companies still overlook this critical issue, assuming none of their flights are disallowed). See "Aviation Tax Simplified"
    • Income inclusion of compensatory flights provided to all employees (control or non-control), impacting their 1099 and/or W-2, including the flights of their guests.
    • Proxy disclosure of related party transactions, such as executive timesharing agreements
    • Excise tax returns may be required for timesharing or interchange agreements

    If you utilize an outside management company instead of an in-house flight department, you still need to maintain these corporate reporting capabilities in-house; your management company doesn't hold all of the data to support the required reporting needed by an SEC registrant.

  • The Power of SaaS (Software as a Service)

    AircraftLogs is offered as SaaS (Software as a Service) or as an Outsourced Aviation Reporting service. Either way, your compliance processes and data quality improve.

    • Improved Productivity If you are report these items today, you understand the complexity. Add up the time spent across each department: travel, aviation, tax, executive comp., financial reporting, and the executive suite. It's a large number. We'll quantify it for you, and show you where AircraftLogs can cut it by 60 percent!
    • Hard Dollar Savings: The IRS provides four methods to calculate the Entertainment Disallowance; the best method can be selected each year. Ask your tax staff how many methods they used. We find most companies only calculate one method, because of the effort required. They fail to compare all methods, potentially losing significant tax deductions. A 5% difference may yield $100,000 or more in tax benefits; in years with aircraft purchases, differences could yield millions. AircraftLogs automatically compares all four methods.
    • Simplified Financial Disclosures: IRS tasks such as SIFL and Entertainment disallowance calculations are fully automated within AircraftLogs. Tracking proxy disclosures (other compensation) becomes a simple reporting task for executive aircraft use.
    • Access to Tax & Legal Expertise: We have collaborated with national aviation tax and legal experts to make AircraftLogs the best automated tool in the market. We can provide introductions to these same experts for your internal staff.
    • Aviation Industry Knowledge: We serve operators of business aircraft across the country, and work closely with industry professionals for legal and tax matters. AircraftLogs bridges the gap between your flight department and your corporate offices.
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