Commissioner of Taxation v Day

Income tax – Allowable deductions - Respondent taxpayer incurred legal expenses in defending charges under the Public Service Act 1922 (Cth) - Income Tax Assessment Act 1997 (Cth) ("ITAA"), s 8-1(1) allowed deductions from assessable income of losses or outgoings incurred "in gaining or producing - assessable income" - Whether legal expenses incurred "in gaining or producing" assessable income - Connection requisite - What is productive of income.

Public service – Disciplinary procedures - Standards of conduct required of an "officer" of the Australian Public Service ("the Service") - Role and duties of officer of the Service - Relevance of incidents of public office to whether legal expenses incurred in gaining or producing assessable income.

Income tax – Allowable deductions - ITAA, s 8-1(2) provided that losses or outgoings of "private or domestic nature" could not be deducted - Whether legal expenses incurred by respondent of private nature.

Words and phrases – "deductibility", "incurred in gaining or producing - assessable income", "in the course of", "legal expenses", "private or domestic nature".

Income Tax Assessment Act 1997 (Cth) – s 8-1.

Public Service Act 1922 (Cth) – Pt III, Div 6.