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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

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