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Edited version of private advice
Authorisation Number: 1051831209552
Date of advice: 6 May 2021
Ruling
Subject: Legal expenses
Question
Are you entitled to a deduction for the legal expenses you incurred in defending the allegations?
Answer
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.
This ruling applies for the following period/s:
Year ending 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
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
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