INTERESTING LAW POINT.

Dominion, Volume 5, Issue 1545, 14 September 1912, Page 4

INTERESTING LAW POINT.

RE DUTY ON A TRANSFER. (By Toleeranh.—Press Association.) Duncdin, September 13. A rather interesting point was raised in appeal by Mr. J. G. Finch (of Oamaru) against the Cqiiiini.ssioiier of Stamps in connection with the assessment of duty on a transfer (o his sons of nn undivided moiety of properly.' The sons had paid i'loo to thu father on land, which was subject to mortgage. The Commissioner claimed Unit gift duty was payable on the- equity redemption of the whole- property, and not only on the equity redemption but on the moiety transferred, and further that no deduction should bo inado in respect of the ,£IOO paid in cash. His Honour said that he should think that it would be payable only on the undivided moiety transferred. Mr. Frascr, Crown solicitor, contended tlint, by the operation of Section 9 of the Amendment Act of 1911 any payment inado to the donor must be disregarded and duty assessed on, the whole valuo of property. His Honour remarked thut it certainly came as 'a shock to a conveyancer to hear it contended Hiat the conveyance of an undivided moiety of a parcel of land amounted to reservation of the other moiety to transferor. He illustrated argument of the Commissioner's claim in this way: That, if a property worth .ElOOl was sold for ,£IOOO that would constitute α-gift of .£lOOl.

After hearing argument, his Honour reserved the point.