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.