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Community Currency - tax implications?

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Is there a ruling on the treatment of community currency for sharing of resources? The situation we are looking to establish is where not for profit entities share/hire assets within a town using a nominal (rather than real) currency that lets them trade with each other without the exchange of real money (as they are cash poor but have underutilised assets)

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Hi @Juliet1,

 

The short answer is yes. Barter and trade transactions are considered assessable and deductible for tax purposes. For  both GST and income tax.

 

It states on our website "In most cases, we will accept as a fair market value the cash price that the taxpayer would normally have charged a stranger for the services or for the sale of the goods or property."

1 REPLY 1
Highlighted

Most helpful response

Community Support

Replies 0

Hi @Juliet1,

 

The short answer is yes. Barter and trade transactions are considered assessable and deductible for tax purposes. For  both GST and income tax.

 

It states on our website "In most cases, we will accept as a fair market value the cash price that the taxpayer would normally have charged a stranger for the services or for the sale of the goods or property."