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Edited version of private advice
Authorisation Number: 1051586695942
Date of advice: 02 October 2019
Ruling
Subject: Deductibility - legal expenses
Question
Are you entitled to a deduction for legal expenses incurred in respect of events that occurred while you were an employee?
Answer
Yes. You are eligible to claim a deduction in relation to the legal expenses under section 8-1 of the Income Tax Assessment Act 1997 as the legal expenses were incurred to enable you to carry out your employment duties. Further information regarding "Deductions and Expenses: Legal expenses in course of employment" is addressed inATO Interpretative Decision ATO ID 2001/27.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
01 July 20XX
Relevant facts and circumstances
You were employed full time by company X.
You experienced an incident in the work place.
You incurred legal expenses in relation to that incident.
The legal expenses were incurred to enable you to carry out your employment duties.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1