Income Tax Assessment Act 1997
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Hide history noteYou cannot deduct under this Act a loss or outgoing you incur that is a * bribe to a foreign public official.
26-52(2)
An amount is a bribe to a foreign public official to the extent that: (a) you incur the amount in, or in connection with:
(i) providing a benefit to another person; or
(ii) causing a benefit to be provided to another person; or
(iii) offering to provide, or promising to provide, a benefit to another person; or
(b) you incur the amount with the intention of improperly influencing a *foreign public official (who may be the other person) in order to obtain or retain business or a business or personal advantage (whether or not for yourself).
(iv) causing an offer of the provision of a benefit, or a promise of the provision of a benefit, to be made to another person; and
The benefit may be any advantage and is not limited to property.
26-52(2A)
For the purposes of subsection (2) , disregard whether business, or a business or personal advantage, was actually obtained or retained.
Payments that written law of foreign public official ' s country requires or permits
26-52(3)
An amount is not a bribe to a foreign public official if, assuming the benefit had been provided, and all related acts had been done, in the *foreign public official ' s country, a written law of that country would have required or permitted the provision of the benefit.
Facilitation payments
26-52(4)
An amount is not a bribe to a foreign public official if: (a) the value of the benefit is of a minor nature; and (b) the amount is incurred for the sole or dominant purpose of expediting or securing the performance of a routine government action of a minor nature.
26-52(5)
For the purposes of this section, a routine government action is an action of a * foreign public official that: (a) is ordinarily and commonly performed by the official; and (b) is covered by any of the following subparagraphs:
(i) granting a permit, licence or other official document that qualifies a person to do business in a foreign country or in a part of a foreign country;
(ii) processing government papers such as a visa or work permit;
(iii) providing police protection or mail collection or delivery;
(iv) scheduling inspections associated with contract performance or related to the transit of goods;
(v) providing telecommunications services, power or water;
(vi) loading and unloading cargo;
(vii) protecting perishable products, or commodities, from deterioration;
(c) does not involve a decision about:
(viii) any other action of a similar nature; and
(i) whether to award new business; or
(ii) whether to continue existing business with a particular person; or
(d) does not involve encouraging a decision about:
(iii) the terms of new business or existing business; and
(i) whether to award new business; or
(ii) whether to continue existing business with a particular person; or
(iii) the terms of new business or existing business.
Improper influence
26-52(6)
In determining whether influence is improper, disregard the following: (a) the fact that the benefit, or the offer or promise to provide the benefit, may be, or be perceived to be, customary, necessary or required in the situation; (b) any official tolerance of the benefit; (c) if particular business or a particular business or personal advantage is relevant to determining whether influence is improper - the following:
(i) if the value of the business or advantage is insignificant - that fact;
(ii) in the case of an advantage - any official tolerance of the advantage;
(iii) in the case of an advantage - the fact that the advantage may be customary, or perceived to be customary, in the situation.
26-52(7)
(Repealed by No 5 of 2024)
Duties of foreign public official
26-52(8)
The duties of a * foreign public official are any authorities, duties, functions or powers that: (a) are conferred on the official; or (b) the official holds himself or herself out as having.
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