Private ruling: Legal expenses
Date of advice: 2 November 2020
Published: January 2021
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are the legal expenses you incurred deductible under section 8-1 ofthe Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The Commissioner considers that your situation is similar to theATO ID 2001/27 Income Tax Deductions and expenses: Legal expenses in course of employment. ATO ID 2001/27references Commissioner of Taxation v Day [2008] HCA 53, 2008 ATC 20-064, (2008) 70 ATR 14 (Day's case) where the courts accepted that legal expenses incurred in defending the manner in which a taxpayer performed his employment duties were allowable. Your case is similar to ATO ID 2001/27 and Day's case as you incurred legal expenses defending the manner in which you performed your employment duties.

Relevant facts and circumstances: You were employed as a corrections officer by the Department of Justice. You were involved in an incident at your workplace with an inmate. A complaint was filed by the inmate and you subsequently charged with common assault and abuse of office. You engaged legal representation to defend the manner in which you performed your employment duties. You incurred legal expenses.

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