12 Aug 10 Addendum to TD 93/29 (employee's deductibility of legal expenses for dishonoured cheque) - TD 93/29A1
On 11 August 2010, the ATO issued an Addendum to TD 93/29 (Income tax: if an employee incurs legal expenses recovering wages paid by a dishonoured cheque, are these legal expenses an allowable deduction under s 51(1) of ITAA 1936?).
The Addendum amends Taxation Determination TD 93/29 to clarify that it is the essential character of the advantage sought in undertaking legal proceedings that is determinative of whether an amount paid for legal expenses is on revenue or capital account.
The Addendum applies on and from 11 August 2010.