Tax Planning Strategy 130 | Sponsorship
Sponsorship is defined by the Cambridge Dictionary as ‘the act of supporting a person, organisation, or activity by giving money, encouragement, or other help’.
The Avon Descent is a 124km power dinghy and paddle boat race from Northam to Bayswater (see www.avondescent.com.au). The main sponsors are Tourism WA, Lotterywest, act belong commit, Healthway, The Sunday Times, and ten network. These sponsors provide a mixture of cash, promotion, advertising, and logistics support.
The sponsors are a combination of government departments, not for profit organisations’ and profit seeking businesses. Sponsors undertake sponsorship to meet their specific organisational goals, the Avon Descent sponsors’ objectives are:
- The Sunday Times and ten network wants to achieve increased sales and enhanced image.
- Tourism WA wants to promote tourism in the Avon Valley region.
- Act belong commit wants to encourage community activities, belonging and commitment.
- Healthway wants to encourage improved health in the community.
Sponsorship will be deductible to a business if it is undertaken to benefit the business and generate future income. Deductibility is based on the business owner’s intent and not whether the sponsorship actually generates any future income.
Similar posts you may like
- Intellectual Property Box Regime
An intellectual property box regime is a special tax regime for intellectual property revenues. It is also known as a patent box, innovation box Read more
- What is a discretionary trust and do I need one?
A discretionary trust (also known as a family trust) is a trust established to hold a family's assets or operate a business. Generally, they Read more
- Tax Savings Strategy 206 | Private Investment Companies
The benefits of using a private company to accumulate investments include: Company tax rate of 27.5% (which will eventually reduce to 25% by 2025). Read more
- 1773 – A Tax on Tea
The East India Company (EIC) was a British joint-stock company formed in 1600 to pursue trade Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2