INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 376 - Films generally (tax offsets for Australian production expenditure)  

Subdivision 376-C - Production expenditure and qualifying Australian production expenditure  

Qualifying Australian production expenditure - special rules for the location offset and the PDV offset

SECTION 376-165   Qualifying Australian production expenditure - special rules for the location offset and the PDV offset  

376-165(1)  
For the purposes of the location offset and the PDV offset, the following expenditure of a company is also qualifying Australian production expenditure of the company on a * film:


Special Australian expenditure - location offset and PDV offset
Item Type of expenditure
1 Australian business overheads
general business overheads of the company that:
(a) are not incurred in, or in relation to, the * making of the * film; and
(b) are not reasonably attributable to:
  (i) the use of equipment or other facilities for; or
  (ii) activities undertaken in;
    the making of the film;
to the extent to which they:
(c) are incurred for, or are reasonably attributable to:
  (i) goods and services provided in Australia; or
  (ii) the use of land located in Australia; or
  (iii) the use of goods that are located in Australia at the time they are used in the
      making of the film; and
(d) represent a reasonable apportionment of those overheads between
    the making of the film and the other activities undertaken by the company
This item has effect subject to subsection (2).
2 Travel to Australia
expenditure of the company in relation to an individual ' s travel to Australia to undertake activities in Australia in relation to the * making of the * film, if the remuneration paid to the individual for those activities is * qualifying Australian production expenditure of the company
3 Expenditure incurred in freighting goods to Australia
expenditure incurred in freighting goods to Australia, to the extent that the goods will be used in the * making of the * film

376-165(2)  
General business overheads of the company are covered by item 1 of the table in subsection (1) only to the extent to which they do not exceed the lesser of:


(a) 2 % of the total of all the company ' s * production expenditure on the * film; and


(b) $ 500,000.


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