Taxable Consequences
General
In the majority of instances, the Tax Regulations normally applicable to the nature of Aust. dollar ("AUD") transactions, are similarly applied to Alpha dollar transactions, in the same manner.
i.e.
BUSINESS RELATED EXPENSES
Majority Tax Deductible
PERSONAL INCOME AND PURCHASES
Tax Regulations Applicable
Refer to Australian Taxation Ruling IT 2668
REF: Barter and Countertrade Transactions
Following is an extract from Australian Taxation Ruling NO. IT 2668.
"11. By way of contrast, consideration which is merely the proceeds of a hobby, pastime, domestic or social arrangement, or the receipt of a windfall gain would not fall within the concept of income in subsection 25(1).
For example, neighbors who exchange some home-grown vegetables over the back fence will not have derived income in terms of subsection 25(1).
Also, benefits derived from the use of informal babysitting clubs would not fall for assessment under subsection 25(1).
It is noted that a large proportion of transactions made through community-based countertrade organisations would not fall within the concept of income in subsection 25(1).
Only those transactions within these organisations which arise from the carrying on of a business or the provision of skilled services would
generally fall for consideration as assessable income."
Rewards
Taxable Consequences On Rewards
TD 2003/20
See Example 2. In the course of carrying on its business, a merchant purchases consumer loyalty program points from an arm's length reward provider.
At the end of each month, the reward provider bills the merchant for the points purchased.
The merchant claims a deduction for the amounts billed in relation to the costs of the points, at the time the liability arises for payment to the reward provider.