Deductibility of legal and professional expenses

Legal and professional expenses are deductible for income tax purposes when incurred under certain conditions. In this article, the author urges the tax authority to review the deductions available in Public Ruling 6/2006.  

LEGAL and professional expenses are deductible under the Income Tax Act 1967 (ITA) when they are incurred in the maintenance of trade rights or trade facilities, existing or alleged to exist. These expenses, however, will not be deductible if they are incurred in acquiring new rights or facilities as they are considered to be capital in nature.