DEATH DUTY PROBLEM

Chronicle (Levin), 2 July 1946, Page 5

DEATH DUTY PROBLEM

-Press Association

QUESTIONS FOR COURT

Bv Telegraph-

WELLINGTON, .Tuly 1. A statement that Dr. Ilarold Angell, of Gisborne, had £12,000 owing to him when he died in 1942, was made when questions of death dutv payable on his estate were raised before Mr. Justice Johnston in the Supreme Court, Wel lington, today. Accountants had to sort through many slips of paper containing brief notes of his professional aetivities, to ascertain his- fmancial position. Debts amounting to £4000 were recovered. Two questions were, in effect, asked the Court — firstly, whetlier costs and other expenses incurred by the executrix in ascertaining the book debts of deceased could be dedueted in valuing the debts for the purposes of death duty, and secondly, wliether income tax payable by the trustee on income derived by him from such book debts, was deduetible for tlie purposes of death duty. The expenses of the investigating accountants were £734. Income eharged dn book debts collected was £801t -T4ie final balance of the estate was certilied at £13,694 and^ the Commissioner assessed death duty at £2043 and succ.es sion duty at £550. It was pointed out that the Commissioner had agreed to the amount of the debts being returned at the gross amount actually received, - plus the amount of those debts as | might be unpaid at the date of any such return and were regarded as good debts, but he could not agree to two I deductions claimed. I His Honour reserved his decision.