No, that's why it was at the Salvo's in the first place he was getting them to peel off the thing of value he bought, bar codes that give flyers miles.
They wouldn't need to believe he was buying it for just the pudding. They would need to believe that the donated pudding had a certain monetary value, that this guy then donated. And that value would be natural to assess against the cost of acquiring the pudding when the donation was made to someone for the benefit of the food..
That he could extract additional value through the work of removing the bar code does not implicitly reduce the value of the pudding itself.
It is not unusual for it to be possible to extract more value by splitting up a product and selling or taking advantage of parts separately. A lot of businesses are even built on buying lots and separating them to extract value as people are often willing to pay over the odds for a smaller part, or parts of the lots may have been undervalued (as clearly was the case here).
In the UK, any promotional 'tokens' like this have to have a monetary value on them - normally it's something like 0.0001p.
IANAL but perhaps this minute monetary value is the legal value (i.e. effectively nothing)?
Bar codes have no intrinsic value. The value is in the promotion. Think of it as a "reimbursement" not for the product, but for the activity of purchasing it.
i might be wrong but if it's a tax deduction, doesn't that just reduce his tax liability by some percentage of the $800, so more like 20-30% depending upon his tax bracket? That way the $800 is only worth maybe $200 - $300.. A tax credit would be a full dollar for dollar comparison.
I can't buy a stack of cars and then donate a ashtray to the Salvation Army and claim the car back?