LAW REPORTS.

Dominion, Volume 5, Issue 1505, 30 July 1912, Page 10

LAW REPORTS.

COURT OF APPEAL. THE DEATH DUTIES ACT, 1909, HOW DOES IT APPLY? Cevta.in phases of The Death Duties Act, 190!>,-caiije /before the Court.of Appeal .resteixlay mpniiiij, niien thu will of the late Henry Holmes, sWpfarmer, of Xlatahiwi, near llastu'tou, was. being discussed. The Bench was occupied by the Chief Justice (Sir Robert Stent), Mr.' Justice Edwards,' and' Mr. Justice Sim. Tho. late Heniy Holmes died on. Apvil 27, V)l\, and' probate of hi? will was Ki'unted to Williaiu Henry Beetham and .Charles Elgax (trustees and executors' on June 27, 1911. The iiual balance-of the estate of the. d«ccased was. assessed by ■ the Coinniiasioner of Stamps 'at .£62,487 Us. lid., and the estate duty thereon (at 9 2-3rda per coat.' amounted to . 9s. 8d; ■ The ComniLssioner assessed tho .succession of Sydney Emily Mary Holmes (wife of deceased) at -«16,«2 175., on, which 17<3. 2d. ia duo as succession duty. TKe succession of Hvree infant children, was assessed at «£11,310 Ts. lid., on whioh no successioa duty is charged. Other successions not concerned in the proceedings before, the Court were assessed at ,£1728:103. In April last, the trustees, of tlio will took out an originating summons in order that the Supreme Court, might decide'as to the manner in which tlio estate duty and the succession duty was to be apportioned among the several successons ot the deceased. The parties-to the summons were Willimn Jienry Bcetho.m and Charles Elgax, trustees of the will, plaintiffs, and SydneyEmily M-iry. Holmes, widow of deceased, and John C, Belle. C, and Sydney C. Holmes,- threo infant children of deceased defendahta. The following questions were submitted to, the Court for answer: ■ Whether any part or. proportion of the estate duty (and if so what proportion) is payable by Mrs. Holmes out ' of the, income accruing, to her under tho will or otherwise? ' , Whether the succession duty payable in respect of Mrs. succession "under the will is payable by her oithev out of her income or othor- • wise? If any part of these duties is payable by Mrs. Holmes (a) can tho plaintiffs, after paying the duties immediately . recover from, Sirs. Holmes, the part " payable, by her? (b) If not, ought the plaintiffs, after paying the duties, to. retain, from time to time the-mcomo accruing to Mrs. Holmes under the will until' the amount of dnty payable by her has'been, satisfied?' (e) In, '" "case of her death before, sufficient income has accrued to satisfy her share • of the dnties, will the residue, of such. : share T». payable, out of her estate; by her executors or administrators? ■ As the questions involved were of considerable i.mi)ortanc6, the Chief Justice ordered tliat the summons be removnd, into, the tourt of Appeal for argument. ■ When, the case was called yesteTday,. 3Lr~G. H.MI appeared-for the plaintiffs,, while Mr. A. Gray, with Mr. M, Myers, appeared, for the' defendants. Legal' argument occupied until late in. the afternoon, whcii the Court reserved decision.