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HE 3: Association rebates
or “Money given back to members by their association”
You could also call this:

“How to divide costs between member and non-member transactions for associations”

When an association deals with both members and non-members, they need to follow special rules. These rules help the association figure out how much money they made or lost in a year.

The association must split up the money they spent or lost during the year. They need to separate the costs for things they did with members from the costs for things they did with non-members.

This splitting up of costs is important when the association is working out their net income or net loss. Net income is the money left over after paying all expenses, while net loss is when they spent more than they earned.

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Next up: HE 5: Association rebates paid by shares or credit

or “Rebates to members given as shares or reduced share payments”
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Part H Taxation of certain entities
Mutual associations

HE 4Apportionment when transactions with members and non-members

  1. This section applies when an association takes into account transactions with both members and non-members.

  2. In determining its net income or net loss for an income year under section BC 4 (Net income and net loss), the association must apportion the expenditure or loss that it incurs in the income year between those transactions with members, and those with persons who are not members.

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