Australian Trade Commission v World Geoscience Corp Ltd [1997] FCA 818

Procedural Posture

Appeal From a Decision of the Administrative Appeals Tribunal Concerning Export Market Development Grants / Judgment on Appeal

Legal Issues

1. 1 ["Whether WGP's expenditure was eligible expenditure for the purposes of Part 1A of the Export Market Development Grants Act 1974." 'Whether WGP was carrying on business in the claim period for the purposes of s 11Z(5).' 'Whether s 11C(2) implied a requirement that business be carried on in connection with the expenditure.' 'Whether there was a rearrangement of business activities or a distribution or transfer of expenditure within the meaning of s 38.' 'Whether motive or purpose was relevant to the operation of s 38.']

Ratio Decidendi

On the facts found by the Tribunal, WGP's expenditure was qualifying export development expenditure under s 11Z(5): WGP had commenced business activities directed to supplying eligible services outside Australia, and the Act did not require actual present supply or sales at the time the expenditure was incurred. Section 11C did not imply an additional carrying-on-business requirement. Section 38 did not apply because neither the assignment nor the Representation Agreement produced a relevant distribution or transfer, or movement, of expenditure; the assignment merely put WGP in a position to incur its own marketing expenditure, and the journal entries only recorded WGP's liability to WGC....

Court Disposition

Appeal dismissed with costs.

Orders

• ['The Appeal is dismissed with costs.']