Badges of Trade

Badges of Trade

In law, the circumstances under which a trade can take place. Badges of trade are important in accounting because non-trade transactions are taxed differently. Badges of trade originate in case law. Examples include the nature of the subject matter being exchanged, the length of ownership, and the reason for the transaction.
References in periodicals archive ?
Prior to the new Construction Industry Scheme (CIS) introduced in April 2007, consultations over badges of trade (automatic categorisation of employed earners) were dismissed for a variety of reasons.
The grey area is traditionally occupied by professional gamblers, and, says Butler, who runs her own company in Alresford, Hampshire, "where it can be shown that all the badges of trade exist together with the profit motive, there have been times when this has been treated as taxable".