Question regarding the deductibility of legal expense incurred in a legal proceeding. Mr.A recently left...
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Question regarding the deductibility of legal expense incurred in a legal proceeding.
Mr.A recently left the job as a loan manager after a legal allegation regarding fraud where he was found not guilty. He was suspended during the course of the legal proceeding however, he wished not to go back to work and is now driving taxis. Mr.A later found that a news agency published an article regarding his legal allegation but did not mentioned the fact that he was not guilty. Mr.A approached his lawyer in order to sue the news agency. The legal proceedings were commenced in the Supreme Court of NSW, however, was settled at Mediation for an undisclosed amount and the article was removed. Mr.A was invoiced by his legal firm for $450,000 including GST.
Is the legal expense considered to be deductible? - Provide relevant legislation and case law.
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