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Edited version of private advice
Authorisation Number: 1051586401384
Date of advice: 25 September 2019
Ruling
Subject: Deduction of legal expenses incurred in defending complaints made against you and protecting employment.
Question
Can I claim a deduction for legal expenses incurred in defending myself against complaints and protecting my employment?
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 20xx
The scheme commences on:
1 July 20xx
Relevant facts and circumstances
You are employed and experienced bullying in the workplace.
Your Director lodged a formal complaint with Human Resources on your behalf.
You received a Notice of Investigation from your employer.
During the course of the investigation concerns were raised, specifically allegations about your own workplace conduct. These allegations were included within the single investigation.
You received an Investigation Completed letter from your employer. It was determined that your complaint/s could not be substantiated and no further action would be taken.
You received a Notice to Show Cause from your employer. Complaints were made against you were capable of being substantiated.
You employed legal services to prepare your response to the Notice to Show Cause.
You incurred $x in legal expenses.
Your response to the Notice to Show Cause was lodged.
Your employer issued you with a Final Notice.
You have maintained employment with the same employer in the same job role and no changes to your employment have been made.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1