Tax Implications

The Australian Taxation Office has issued rulings that apply to trading in alternative currencies, such as samaras. Unfortunately we do not have legal advice for other countries at this time. You may want to do your own research.

The income tax ruling (Taxation Ruling No. IT 2668 dated 13 February 1992) states that consideration (in our case, samaras) which is merely the proceeds of a hobby, pastime, domestic or social arrangement, would not be assessable income for income tax purposes. Examples are given of neighbours exchanging home grown vegetables and the use of informal babysitting. The ruling notes that a large proportion of transactions made through community based groups, such as the Sharehood, would not fall within the concept of assessable income.

Only those transactions which arise from the carrying on of a business or the provision of skilled services may give rise to income tax implications. In such cases, the samaras earnt from the business or professional services may be deemed assessable income, which means you may need to charge an additional tax component in $AUD, which you can include in your tax return.

The GST tax ruling (GSTR 2003/14 dated 12 November 2003) will not apply to most of the members of the Sharehood. It is only relevant where a member is registered or required to be registered for GST and trades in the course of their business enterprise. If you are in this situation, you should make yourself familiar with this ruling.

Your tax position is an individual matter and an individual responsibility. The Sharehood takes no responsibility for collecting or policing tax. Under law, it cannot prevent the Australian Tax Office obtaining access to view our documents and trading records.