We are a sports equipment manufacturing business. We sponsor an athlete by providing such equipment, also paying for his competition entry fees. The athlete in turn only uses our equipment and posts on social media. Our accountant is arguing this is a fringe benefit and may not be able to be claimed as advertising
Hi @ABYR1067,
Possibly – it depends on the setup.
If the athlete’s promoting your business (like posting on socials and using your gear), it could be a deductible sponsorship. But if it looks more like a personal benefit (like paying their comp fees without clear business return), it might be a fringe benefit – especially if they’re an employee or closely connected.
Check out Chapter 14 of Entertainment and fringe benefits. It covers when providing things like travel, accommodation or event costs might be considered a fringe benefit.
If it’s still unclear, you or your accountant might want to request a private ruling to be sure.
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