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Edited version of private advice
Authorisation Number: 1051566517125
Date of advice: 19 August 2019
Ruling
Subject: Legal expenses
Question
Are you entitled to a deduction for the legal expenses you incurred to defend a criminal charge which occurred during your employment?
Answer
Yes.
Your legal expenses are deductible, as it is accepted the expense meets the requirements detailed in section 8-1 of the Income Tax Assessment Act 1997. Further information about legal expenses can be found by searching 'QC 54233' on ato.gov.au
This ruling applies for the following period
1 July 20XX to 30 June 20YY
The scheme commenced on
1 July 20XX
Relevant facts
You are employed.
You were charged with a criminal offence.
The complainant was a person who was associated with your employment.
You do not have professional indemnity insurance.
You incurred legal fees defending the charge.
The charge was dismissed and you were not awarded any legal costs by the court.
You are currently on unpaid leave from your position.
You are awaiting your accreditation to be reissued so that you can return to work.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1