Sponsorship/advertising advice needed

[vikki1975]

Hi, I am looking at ways of being able to help my brother financially with his drag bike racing. I have a shop and he is going to give me advertising on the bike.

What are the tax implications of any money I am to give him from the business??

Can I sponsor him or do I just call it advertising.

Would really appreciate some advice

 

[gordano]

You are probably best to post this question in the tax/accounting section of the forum where there are lots of experts in this field.

As a business you can pay for advertising in the form of sponsorship however if the sponsorship is of an individual that is a family member and not a commercial entity then there may be other tax implications.