Private ruling: Legal expenses
Date of advice: 17 February 2021
Published: April 2021
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for the legal expenses you incurred in defending the allegations? | A1: Yes . You incurred legal expenses defending allegations concerning your conduct whilst carrying out your employment duties. In your case, it is accepted that the legal expenses you incurred are sufficiently connected to your income earning activities and are not capital or private in nature. Consequently, these legal expenses are deductible under section 8-1 of the Income Tax Assessment Act 1997 .

Relevant facts and circumstances: You are an employee. Allegations were made against you concerning your conduct whilst carrying out your employment duties. You incurred legal expenses in defending the allegations.

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