Partnership or Sponsorship?
You can treat a partnership with the CBA as a sponsorship for tax purposes if the expenditure involved on your part can be said to be wholly and exclusively for the purposes of your company’s trade, profession or vocation.
This will usually mean that there should be some real business benefits for you from sponsorship and your payment should be made to achieve a genuine commercial objective by, for instance, your company’s name or logo appearing on promotional material (posters and flyers), programmes, or through media publicity.
The following types of expenditure cannot be considered as sponsorship:
- Capital expenditure
- Expenditure not made wholly and exclusively for business purposes, or expenditure which is specifically disallowed (such as any entertaining expenditure
For more sponsorship details on benefit and/or tax implications please talk to your accountant.
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