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Edited version of your written advice
Authorisation Number: 1051454066822
Date of advice: 13 November 2018
Ruling
Subject: Legal fee expenses
Question
Are you entitled to a deduction for legal expenses incurred in a misconduct investigation?
Answer
Yes. It is accepted that you incurred the legal fees in defending the nature in which you perform your employment duties.
This ruling applies for the following period:
Year ending 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
● You are employed in a management role.
● You were accused of bullying an employee.
● A misconduct investigation commenced.
● Your employer demanded you reply to the allegations and defend yourself or face dismissal.
● You sought legal advice.
● The lawyers reviewed and responded to the allegations.
● All accusations were eventually withdrawn, with no further case to answer.
● You were then able to continue your employment with your employer.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1