I think it really depends on who the gift is to, and maybe even the intention. This is definitely a transaction that I would review with my accountant. If I make a cash donation to the local rink or an event and get my name on a leaflet, then I think that’s advertising and promotion. If I give a gift of cash to someone in need or to a church/similar organization it would be considered a charitable donation and recorded as such. A gift or bonus to an employee would be considered wages and would require payroll deductions to be remitted. I would use your best judgement and then just flag this item for your accountant or tax professional to review. Excellent and timely question given the season. Thanks for asking it!
