A MISSION GIFT.

North Otago Times, Volume CVII, Issue 17170, 29 March 1927, Page 6

A MISSION GIFT.

appeal against ruty ' 1 assesSment. I judgment for appellant. ' lu the Supreine Court Dunedin, His Honouv Mr Justice Sim gaye judgment in the case in which the Perpetual Trustees Estate and Agenc-y company of New Zealand (Ltd.), as executor and trustee of the will of Peter Grant Mackintosh, late of Dunedin, a retired accountant, appealed agamst the duty aSsessment of the Commissioner of Stamp Duties on a legacy to the Presbyterian Church VVhen the case was heard, Messrs H. Brasch and J. Wilkinson appeared for the appeliant, and Messrs F B. Adams and R S. M. Sinclair for tlie lespondent. In giving judgment li'is Honour said : — "This is a case stated under section 62 of the. Death Duties Act, 1921. The .appeliant is the executor ot the will of Peter Grant Mackintosh, wlio diedi on the 2nd of October, 1925. By his will the testator dirccted the appollant to liold the residue of his estate in trust for the Presbyterian- Church of New I Zealand for the purposes of^ assistifng their foreign missionary work. This residue is valued at £4417 18s 7d, and the respondei't assesscd succession duty thereon at the sum of £441 15s lOd as being 1U per centum of tlie value of the succession. Tko appeliant contends (,1) That the Presbyterian Church of New Zealand is not a person who acquires a benelicial interest under the will, and is, therefore, not a 'successor' within the meaning of section 16 of the Death Duties Act, 1921 , (2) that the true successors are the i'oreign lieathen persons for whom the benetits of the trust-s will ultimately be apphed; (3) that if they are the successors rhere :s uo ^ succession which exce.eds in value £500. The bequest of the residue to the Presbyterian Church is clothed, I tliink, with a trust, and the church is bound to i.se that residue exclusively for the purposes of its foreign missionary work. The obligation, can be enformed in a properly constifuted suit in this court : Conunissioner of St-amps v. M'Doual, 28, N.Z.L.R., 373, 361. This was not disputed by Mr Adams, but lie contended that the church must be treated as the ■ beneficial owner of the residue unless there was some other separate person who oould be identiheo as the successor within the meaning of section 16 of the Act He did not cite any authority in support of this contentjon. and I am unable to accept, it as sound. The church takes the residue in trust for the benefib of tlie foreign heathen, and dioes not ltself acquire any beneficial interest therein, although the gift may benefit tlie churcffindirectly by setting free for its general purposes funds which otherwilso would have been spent in missionary work. The persons who acquire tlie beneficial interest in the residue are the heathen for whose benefit the money will be spent, and it 'is impossible to say that the interest of anyoiie of tliese persons exceeds in value £500. The case, therefore, does not come within the terms of sub-section 7 'of section 17 of the Act, and the assessment cannot be supported. That is tlie answer to the question submi'tted' by the >case. The appeliant is ailowed £7 7s for the costs of the appeal." i ==3.