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Income From Employment

Deductions (Legal Expenses (S11c)

• If legal expenses are not incurred in the production of income such

expenses are not deductible under s11a.

• S11c provides for deduction of certain types of legal expenses which

have not been deductible under 11(a).

• Legal costs incurred on any claim, dispute in the course of ordinary

operations undertaken by a taxpayer in carrying of his trade.

• Excluding legal cost of capital in nature.

• It is not a requirement that the expenditure should be in the

production of income.

• The expenditure is incurred to prevent a claim of compensation or

damages that are deductible or

• A claim that would be taxable.

• The costs must relate to some action of law.

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