14 (General Deductions)[1]

Fees paid for the right to exploit income producing

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fees paid for the right to exploit income-producing  assets over a period of time provided the taxpayer  does not obtain any permanent ownership rights in  relation to those assets ( Citylink )
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Foundations of Taxation Law [¶14.11] © CCH Australia Limited Interest expenses Interest expenses Deductibility of interest usually depends upon the  objective use to which the borrowed funds are  applied and not the security provided for the loan  ( Munro ) Interest is ordinarily a revenue outgoing ( Steele ) However, in rare cases, interest may be capital in  nature ( Macquarie Bank St George Bank )
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Foundations of Taxation Law [¶14.12] © CCH Australia Limited Legal expenses Legal expenses Whether legal expenses are of a revenue or capital  nature is usually determined according to the  “business entity test” Legal expenses incurred for the purposes of  protecting, preserving or enlarging the taxpayer’s  business organisation will usually be capital in nature  ( Broken Hill Theatres John Fairfax PBL Marketing )
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Foundations of Taxation Law [¶14.13] © CCH Australia Limited Management expenses Management expenses Management expenses incurred by footballers were  deductible under s 8-1 because: Footballers were engaged in business of  commercially exploiting their sporting prowess and  celebrity Playing contracts were of a revenue nature and  management fees were a recurrent expenditure in  respect of those assets ( Spriggs & Riddell )
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