Income Tax Assessment Act 1997

You cannot deduct under this Act a loss or outgoing you incur that is a *bribe to a foreign public official.

An amount is a bribe to a foreign public official to the extent that:

you incur the amount in, or in connection with:

providing a benefit to another person; or

causing a benefit to be provided to another person; or

offering to provide, or promising to provide, a benefit to another person; or

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

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).

For the purposes of subsection (2), disregard whether business, or a business or personal advantage, was actually obtained or retained.

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.

An amount is not a bribe to a foreign public official if:

the value of the benefit is of a minor nature; and

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.

For the purposes of this section, a routine government action is an action of a *foreign public official that:

is ordinarily and commonly performed by the official; and

is covered by any of the following subparagraphs:

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;

processing government papers such as a visa or work permit;

providing police protection or mail collection or delivery;

scheduling inspections associated with contract performance or related to the transit of goods;

providing telecommunications services, power or water;

loading and unloading cargo;

protecting perishable products, or commodities, from deterioration;

any other action of a similar nature; and

does not involve a decision about:

whether to award new business; or

whether to continue existing business with a particular person; or

the terms of new business or existing business; and

does not involve encouraging a decision about:

whether to award new business; or

whether to continue existing business with a particular person; or

the terms of new business or existing business.

In determining whether influence is improper, disregard the following:

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;

any official tolerance of the benefit;

if particular business or a particular business or personal advantage is relevant to determining whether influence is improper—the following:

if the value of the business or advantage is insignificant—that fact;

in the case of an advantage—any official tolerance of the advantage;

in the case of an advantage—the fact that the advantage may be customary, or perceived to be customary, in the situation.

The duties of a *foreign public official are any authorities, duties, functions or powers that:

are conferred on the official; or

the official holds himself or herself out as having.