Quote:
Originally Posted by American Dave
I'm no tax accountant but I do know that DTW have sponsored all manner of things in the past such as motorcycle enduro event rider, farking Pannawonnica rodeo bull rider, Motorvation 2009 just to name a few. We are privately owned company and if we think its good community based advertising we do it.
|
Yeah, but you need to get something back from the person/place being sponsored to claim it. i.e. I've had tax invoices, receipts, letters of recognition/thanks etc for past sponsorships.
Thing is, ATO doesn't let a company just hand out tax free money to people. So Tino getting sponsorship money might be seen as extra income and he pays tax on it. Mainly why he needs to look into it more. $20k quickly becomes $10k when Mr Taxman wants his cut.
Just something for Tino to consider and check with his accountants prior.