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Edited version of private advice
Authorisation Number: 1051536555595
Date of advice: 28 June 2019
Ruling
Subject: Legal expenses defending against a complaint at work
Question
Are the legal expenses you incurred deductible?
Answer
Yes
Based on the facts it is considered that the legal expenses you incurred are deductible under section 8-1 of the Income Tax Assessment Act 1997.
This ruling applies for the following period:
Year ended 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You are employed.
You had trouble with a fellow employee who you managed and their friend.
The friend had lodged a formal complaint against you.
The complaint stated that you engaged in behaviour in your role that does not meet the organisation's Code of Conduct.
You incurred legal expenses in defending yourself against this complaint.
Eventually the complaint was dismissed and no findings were made against you.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
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