APPEAL COURT

Dominion, Volume 12, Issue 7, 3 October 1918, Page 3

APPEAL COURT

STAMP DUTIES

ASSESSMENT ON TRANSFERS . The Appeal Court was engaged yesterday in hearing a stamp duty case. On t-ho bench were His Honour the Chief Justice (Sir Robert Stout), His Honour Miv Justice Cooper, His Honour Jlr. Justice Chapman, and His Honour Mr. Justice Sim. The case was that of Matthew Richard Bernard Hammond, of Wanganui, farmer, Agnes Hammond, of Ohingaiti, widow, and four others, appellants, and the Minister of, Stamp Duties, respondent. . The Solicitor-General (Sir John Sallnond, K.C.) appeared for the Minister, and Mr. T. Neave for the appellants. The facts set out wero that Richard Hammond, of Ohingaiti, farmer, died intestate on February 15, 1917. The deceased left surviving him a widow and ton children, of whom two were minors. Letters of administration were granted to Matthew Richard Bernard Hammond (son) and Agnes Hammond (widow). The appellants were the. widow and five children of the deceased. The estate of the deceased consisted of personality of the value of about £11,000 and real property of the value of about £31,000. The debts of the deceased amounted to £200. An agreement for the distribution of the estate was made on July 17, 1917, and the consent of the Court was obtained. On November 16, 1917, the administrators executed six memoranda of transfer, whereby th'o lands of the deceased were severally vested in the appellants. Each transfer was assessed under the Stamp Duties Act, ISOB, and tho Finance Act, 1915, as a\ .conveyance on sale, with ad valorem duty on the total consideration as expressed in the transfer (being the agreed value of the land transferred), deducting, however, from that consideration the value of the interest possessed by the transferee under the Statutes of Distribution in" the parcel of land so transferred to him. The appellants were dissatisfied with the assessments and. requested tho Minister to state a case for the Court. It was contended for the appellants ■—(a) That each of the said transfers is assessable with ad valorem duty only on the agreed consideration so far as it exceeds the value of the distributive eha're of the, transferee in the total estate of the deceased; or (l>) that each of tho said transfers is assessable with ad valorem duty only on the agreed consideration so far as it exceeds tho distributive share of the transferee in the aggregate valuo of the i eal estate of the deceased. It was contended for tho Minister of Stamp duties— ' ■ , (a) That each of the said transfers is assessable with ad valorem, duty on tho total nmount of the agreed consideration without any deduction whatever; or . (b) That in accordance with tho assessments actually made, of, the said transfers is assessable with , ad valorem duty on the amount of the agreed consideration so far-as it exceeds tho distributive share of the transferee in tho pa'.-cel of land eo transferred to him. '•' The questions submitted to the Court are— | • (a) ' Whether tho assessments so made are oorreot ? (b) If not, wbat is the correct basis of assessment? After lionri'iT argument the Court reserved decision.