Taxation Law Assignment Question:
Microhard is a computer software company. Its principal product was a database programme called Xshell.
Microhard decided to expand its products to include a word processing programme that it released under the brand name 'WurdPherfect'.
Soon after the release a competitor [Courelle] sued Microhard for breach of copyright, claiming the name was copied from Courelle's software package. Microhard incurred $500,000 in legal fees and eventually settled the matter on payment of $4m damages.
Required: Advise Microhard whether the outgoings are deductible.
Attachment:- Assignment Files.rar