DEATH DUTIES.

Manawatu Herald, Volume XXX, Issue 442, 28 November 1908, Page 3

DEATH DUTIES.

Appeal Against Assessment.

A Foxton Case.

An appeal against the assessment by the Commissioner of Stamps of death duties in the estate of the late Herbert Austin, part owner of the Moutoa Estate, of Foxton, was made before his Honour Mr Justice Chapman at Wellington on Thursday by Mr Treadwell on behalf of the trustees. Mr H. D. Bell, K.C., appeared for the Commissioner of Stamps. The amount involved in the appeal as claimed by the counsel for the appellant as excessive was £4500 goodwill of flax growing on the Moutoa Estate. This the Crown abandoned, admitting that the law as it now stood required the land to be valued as including the flax. (2) The valuation of two flaxtnills on the Moutoa Estate and their goodwill. It was proved for the executrix that she had conveyed the mills to Oliver Austin, brother of the deceased, in compromise of a claim made by him against the estate. Upon proof that the compromise was bona fide, the Crown consented to the exclusion of the two flaxmills from the estate. (3) The value of the goodwill of Whyte’s Hotel, Foxton, assessed by the Commissioner at £SOOO and by the executrix, who was liable to pay death duty on a half share, at a considerably smaller sum. The duty assessed on the whole estate oh a valuation of ,£32,662 17s was £1633 2s rod. Mr Treadwell submitted that the goodwill in respect of the flaxmills was really ' of a most trivial description. The • arrangement was that on every change of ownership the purchaser should pay over a sum of £3OO for flax-cutting rights. There was no fixed term of lease the duty was supposed to be assessed on the of i J /2 year’s profits of the mill. The hotel property included , a large block, which, however, was not leased to the lessee ot the hotel itself. On this property also Mr Treadwell submitted that the goodwill had been greatly overestimated. It was stated for the appellant that the hotel was leased fora term of seven years at£n per week, the lessee having paid £SOO by way of premium and £2500 for goodwill and furniture. His Honour observed that the goodwill of country hotels .was . often high as compared with the

value of the buildings. The valuation was upheld. (4) The other point in dispute was whether the executrix was entitled to claim that the payment of the death duty should, be postponed until after the death of the tenant ior life, notwithstanding .that the estate produced ‘more than ,£sooo’a year. His Honour rejected the contention of Mr Treadwell for the executrix and held that the duty must be paid immediately. Costs were allowed to the appellant in respect of item (2) and to the Crown in respect of item (3).