Blog Q&A Calculators Students Logbook Contact
Only -0 Days Remaining of Tax Season 2017! Click here to file your tax return with TaxTim now.

Are legal expenses for CCMA legal advice deductible?

Posted 24 November 2014 under Tax Q&A


235 DAYS
LEFT OF
TAX SEASON
2017


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
A company I worked for claimed intellectual property of software I developed in my private time for a private client. Their claim was based on the wording in my employment contract. When I refused to hand over the IP, they made my life a living hell. I left the company citing constructive dismissal and went to the CCMA. While I represented myself, I paid a labour lawyer for consulting on what to do.

Can the costs of the labour lawyer be seen as a legal expense even though I lost the CCMA case? I was claiming 12 months salary which would have been taxable.

From the SARS website:

LEGAL EXPENSE i.t.o. section 11 (c)

You may claim legal expenses incurred for any claim that is directly related to your salary package, such as a CCMA case where the claim will, as a result of a court order, be included in income or an out of court settlement in respect of labour disputes.

These amounts must be completed next to code 4044.

This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.

TaxTim TaxTim says:
24 November 2014 at 15:43

Provided the expenses is incurred in income that would be taxable in your hands then yes you may claim this amount for tax purposes.


Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


235 DAYS
LEFT OF
TAX SEASON
2017


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started