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Edited version of your written advice
Authorisation Number: 1051444362339
Date of advice: 24 October 2018
Ruling
Subject: Legal expenses
Question
Are you entitled to a deduction for legal expenses associated with seeking legal representation to attempt to resolve a workplace bullying issue?
Answer
Yes. It is accepted that you incurred legal expenses to restore the conditions and environment of your workplace.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You were bullied and harassed over a number of years in the workplace.
You engaged legal counsel.
You incurred legal expenses directly related to your income and earning capacity.
The harassment in the workplace has not yet been resolved.
Your lawyers are continuing to resolve the matter.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1