Example 1
An applicant performs
concerts free of charge for an overseas client. The only ‘income’ it receives
for offsetting tour expenses is from an Australian airline which provides free
overseas travel. If the airline provides free travel through its arrangements
with the applicant (say sponsorship), the applicant is still considered to have
provided a ‘free sample’. However, if the airline provides free travel through
arrangements made with the overseas recipient of the ‘free sample’ (say the
overseas sponsor or a festival organiser), it will not be a ‘free
sample’.
Example 2
An applicant performs concerts at an overseas festival. It contracts with
the festival organisers to provide the free services. The festival
organisers use a separate company to manage festival events. This
company arranges for the applicant to have free accommodation
for the festival activities. In this case the applicant is considered
to have received some non-cash amount in relation to providing
the services and Austrade will not assess expenses under ‘free
samples’.
© Australian Trade Commission