MKW operates a radio broadcasting licence in an Australian country town. It is the only radio station in town but a rival is now seeking permission to be granted a new radio licence to operate in competition with MKW. On hearing of the rival's proposed entry into the country town's radio market, MKW engages a law firm and incurs $50,000 in legal fees to oppose the grant of the new radio broadcasting licence. MKW is successful in preventing the new issue of the new broadcasting licence. Would MKW be entitled to a tax deduction for the $50,000 incurred in legal fees?

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The Answer of MKW operates a radio broadcasting licence in an Australian country town. It is the only radio station in town but a rival is now seeking permission to be granted a new radio licence to operate in competition with MKW. On hearing of the rival's proposed entry into the country town's radio market, MKW engages a law firm and incurs $50,000 in legal fees to oppose the grant of the new radio broadcasting licence. MKW is successful in preventing the new issue of the new broadcasting licence. Would MKW be entitled to a tax deduction for the $50,000 incurred in legal fees?

MKW Operates a Radio Broadcasting Licence in an Australian Country