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## MODEL FOR SUSTAINABLE SELF-FINANCING INTEGRATED RURAL AND POOR URBAN DEVELOPMENT FOR THE WORLD'S POOR

Incorporating innovative social, financial, economic, local administrative and productive structures, numerous renewable energy applications, with an important role for women in poverty alleviation in rural and poor urban environments.

"Money is not the key that opens the gates of the market but the bolt that bars them"

Gesell, Silvio The Natural Economic Order

Revised English edition, Peter Owen, London 1958, page 228

Edition 11: 02 October, 2006

(EN FRANÇAIS)

#### 04.13 TAXATION UNDER THE LOCAL EXCHANGE TRADING (LETS) SYSTEMS

For a drawing of the proposed LETS structures refer to:
DRAWING OF PROPOSED LETS STRUCTURES.
HOW A LETS TRANSACTION WORKS.

This project is designed to create rapid, sustainable and durable local development.

The project coordinator will reach a binding agreement with the tax authorities, before the project gets under way, to ensure that the tax authorities are not deprived of current tax revenue.

The tax authorities will define LETS activities carried out in LETS currencies under the project as non-commercial, and therefore non-taxable.

The project is based on a tax moratorium of at least 20 years on all LETS activities.

After the moratorium, the following basic rules will apply:
-1. LETS exchanges where a user helps a friend, or performs a job on a "one-off" basis are not taxable.
-2. LETS exchanges involving activities not part of the normal business activities of the supplier are excluded.
-3. The expression "normal business activities" will be interpreted in the manner most favourable to the users.
-4. Normal LETS exchanges by businesses are taxable.
-5. All costs and business expenses are tax deductible.
-6. Businesses will be taxed in respect of LETS exchanges on the net profits they generate from them.

Forward: Local money transactions.

Back: Certainty of execution.

Menu for group 4 work files: Project goals and expected results.

Main menu for project work file groups.

Main menu for the Model.

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