Westfield on the Gold Coast by Matthew Cranston Westfield Group has launched legal action in a bid to block the development of a major new shopping centre on the Gold Coast. The centre, proposed by Simon Lee$$s Lewani Springs Resort, was approved by the Gold Coast Council last year with a $4000-$square metre Coles supermarket, as well as fast food stores and offices. Westfield appealed the approval on $12$ separate grounds. Among them is the belief that $$there is no demand in the area for the proposed development$.$ The shopping centre giant said Mr Lee$$s new development would $$unduly impact on existing retail centres$.$ However, Westfield has filed plans itself for $$1$ billion complex at Coomera with joint$-$ venture partner the Queensland Investment Corporation. $$Westfield cause untold damage,$$ Mr Lee said. $$I spent $$3$ million on legal fees fighting them on my last development and I will probably end up spending another $$650,000$ on this,$$ he said. Westfield is well known for opposing rival retail developments that come too close to its existing or planned shopping centres but does not always win. It took on global retail giant Costco last year which was looking to build its first store in Queensland. Westfield were defeated when the Newman government used its call in powers and gave approval to Costco. The Productivity Commission has long been critical of the planning restrictions on retail development and the way the system is gamed by rival retailers, investors and developers. Mr Lee will continue the fight. $$Westfield have already agreed for me to go ahead with this development but only if I open it in $2017,$ Mr Lee said. $$They just antagonise anyone who wants to do anything.$$

Required: Advise Mr$.$ Lee of whether the legal expenses of $$650,000$ will be deductible for income tax purposes. In your analysis, ensure that you consider general deductions and any relevant specific deduction provision$($s$)$