http://blogs.crikey.com.au/planetal...Feed:+CrikeyBlogs+(Crikey+Blogs)&utm_content= Welcome to my nightmare. When Etihad announced an app to turn frequent flyer points or miles into cash at the point of sale with my tablet or phone it probably fulfilled the wildest dreams of some of the sharper minds in the ATO. How? By converting the non-taxable generation of loyalty rewards into cash payments, because cash payments are income that has to be declared, whether or not it comes with legitimate tax deductions. It doesn’t matter if that cash is considered a discount on goods or services purchased, or a reward for supporting a product, because in the end, it is being rendered as a cash payment, not a ‘free’ seat from distressed inventory, for which the frequent flyer member in say the Qantas Classic pays all of the real costs like any other fare in terms of fuel levies, airport charges and so forth, charges which these days sometimes exceed the special offers that are out there anyhow, but that’s another story most frequent flyers are painfully aware of anyhow.