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Income Tax │ Legal Expense Deductions
If you incurred any legal expense during the tax year, the Income Tax Act allows a deduction for tax purposes under section 17(1)(c). In order for a legal expense to qualify for a tax deduction, the following guidelines must be considered.
Any legal fees in respect of legal practitioners and expenses in respect of court fees, wit-ness fees, expert advice fees and fees of sheriffs and messengers of court, not of a capital nature, which are actually incurred during the year in respect of any claim, dispute or action at law, arising from normal business operations in carrying on of a taxpayer’s trade, is de-ductible for income tax purposes.
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