The following question might refers to Income Tax Law subject

Advise UniLyfe as to the likely tax treatment of the $100,000 expense on legal fees

UniLyfe are a magazine publisher who publish a magazine for students in Victoria about life at university. This year, they publish a story about Howard University which alleges that the institution is dangerous and not well maintained. These allegations are not true, as recent investigations into Howard University have shown it is in the top 5 safe Universities in Victoria. As a result of the false story Howard University enrollment drops by 30% and file a legal claim in court against UniLyfe for damages.

UniLyfe defends this claim against them and spends $100,000 on legal fees. This is the second lawsuit that UniLyfe has had to defend themselves against in the past two years.