Are legal expenses for CCMA legal advice deductible?

By Marc Sevitz · Updated

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.
TaxTim Marc

TaxTim Marc said:
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.
Salary / IRP5
Deductions
Rental Income