Commissioner of Taxation v Day (includes corrigendum dated 15 January 2008)

[2007] FCAFC 193

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Interrogate

Catchwords

1. Taxation
2. › Income tax
3. › Deductions
4. › Legal expenses
5. › Expenses incurred defending disciplinary charges
6. › Whether expenses incurred 'in gaining or producing' assessable income
7. › Whether conduct underlying charges must relate to performance of duties
8. › Whether purpose of defending employment income sufficient
9. › Income Tax Assessment Act 1997 (Cth), s 8-1
1. Taxation
2. › Income tax
3. › Deductions
4. › Legal expenses
5. › Occasion of expenditure
6. › Employment as occasion of expenditure
7. › Distinction between performance of duties and observance of duties
8. › Apportionment
9. › Income Tax Assessment Act 1997 (Cth), s 8-1
1. Practice and Procedure
2. › Issue estoppel
3. › Consent judgment
4. › Whether consent judgment in respect of one tax year and one set of legal fees gives rise to estoppel in respect of different legal fees in subsequent tax year
5. › Scope of issues determined by consent judgment

Quick Take

Employees who incur legal expenses defending disciplinary charges that threaten their employment income may claim those expenses as deductions under s 8-1, even where the underlying conduct was not performed in the course of their duties, provided the occasion of the expenditure is found in the employment that produces assessable income.