The directors of Delicious Delights have asked to meet with you to discuss a couple of tax matters that concern them.

i. The directors inform you that a competitor has been making false statements online about the quality of Delicious Delights products on social media and that they have incurred legal costs to stop the competitor making these statements. The directors want to know whether such costs are income tax deductible.

ii. Above the shop is a small flat that has been left unused, but the Directors would like to rent the flat out to a tenant. The flat has one bedroom, a small living area, a small kitchen, a bathroom, and a toilet. They want to know whether they will have to charge GST on the rent.