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Examples of Public Policy Ruling 1997/1

  Public Policy Ruling 1997/1

Example 1

A representative is given an overall amount for trade fair costs but cannot demonstrate that any part of it was paid or reimbursed to independent third parties at the request of the applicant. This amount is assessable at item 1.

Example 2

A representative pays independent third parties to organise the applicant's overseas trade fairs and the applicant's brochures. The applicant reimburses the representative for the expenses. These expenses would be assessable at item 5.

Example 3

An applicant pays for fares for an overseas visit of an overseas representative as well as for communications costs for the representative. Those expenses will be assessed in item 1. The legislation does not provide for expenses of these activities of the representative  to be assessed anywhere other than in item 1 in the table.

Example 4

An applicant's Australian-based employee visits the applicant's overseas representative. During the visit the representative incurs expenses on fares to enable this Australian-based employee to firstly, accompany the representative in travelling around its territory and secondly, to return to Australia.
In this case the expenses associated with the representative's travel would be assessed in item 1 and the expenses associated with the Australian-based employee would be assessed in item 2 (marketing visits)

Example 5

The overseas representative receives an overall fee as well as being reimbursed by the applicant for particular expenses. Austrade identifies that the applicant has paid the representative by way of the fees and/or expenses for patent expenses and for fares for overseas buyers.

Patent expenses would be ineligible as capital items (section 41 refers). The expenses of fares for overseas buyers would be assessed on their merits. Austrade may apply section 96 and adjust expenses if an applicant has transferred expenses to the overseas representative in order to claim for activities that would not normally be expected to be carried out by that representative.


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