Private ruling: Capital gains tax
Date of advice: 10 December 2021
Published: March 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for legal expenses to defend the termination of your employment? | A1: Yes. Based on the information provided to the Commissioner your legal expenses are an allowable deduction as they were incidental or relevant to the production of your income. The expenses are an allowable deduction under section 8-1 of the Income Tax Assessment Act 1997 .

Relevant facts and circumstances: You incurred legal expenses to defend allegations made against you in the workplace, in carrying out your duties. Your employment was going to be terminated. You engaged a lawyer to defend these allegations. You incurred expenses. You have not been reimbursed and will not seek to claim for these expenses through insurance or other means of reimbursement.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1