NEW DEATH DUTIES

Taranaki Daily News, Volume LII, Issue 237, 12 November 1909, Page 4

NEW DEATH DUTIES

UEADaIS'ITNC. THE iiUUDEX. INCREASED DUTIES ON LARUE ESTATES. INDUCIXU WIDER" DISTRIBUTION OF WEALTH.

The existing law with regard to the imposition and collection of death duties calls for anieimmcnt, not only I™ l.lie purpose of taxation, out adjustment of these duties ill accordance with both the amount ol an csule and the shares taken -by beneficiaries or next kin, stated Sir J. G. Ward in introducing tlie Hudget. the exisl.in.' scale is illogically graduated. Muieum-, mane of the largest estates in Ne» Zealand to-day escape taxation altogether. No matter how great Hie fortune left to a widow or widower, no

dulv is payable, whereas duty U payable on small estates even if left to children. Under the present law, as a further example, if CiWlllo is divided among Hi children, all under age, the esiate has lop.iv (he same dut\ j as if Hie whole annumi went to one son. I pi,i|nw to inli-oaiive a new Death Duties Hill, which will impose too de-j scripl.ilins of dlltv, VIZ., death dllU ill ! respect of estates of licensed persons, and gift duty in I'cspri i of gifts maac bv a nerson in life tune. 'lhe former is subslfluted for the duty in.posed bv the

■xlsting Cimsolidiilci! DcaU Duties At L : .!HIS, while Hit! latter will Luke Lhe place if tht! Deed anil (J if I. Iln"' miiioseti u.v ! lit" Stani]) Duties Act, I '■''«»• 1,1 " ilh ' luLies under the propo-cl Hi" ronsist j if tun kinds, viz.. cslale tluty mid | .ucccsiuii duty. 'l'liU- is mil the Linn- ' ir t!:t' place fur dciails. Speaking gen-j rallv. tlic new measure "ill deal with ■he siihiiTl on modern lini's and c.|iiil.-1 ihle principles. I'l will provide I'm- » Tailir.itcd rate rising from 2 per cinil.. in stall's of .CIUIKI, increasing to S per cnl. ill rases uf estates uf .U 1011,0011. Utenitiuiis will also lie made in ,„,r law u lirhig it into conformity with the aiglish law as regards tests of domicile ril.li respect to the s'ituatinn of propery. Estate duty will lie imposeil not lily upon the ]iropert.y which deceased es'ts in his executor or iulniiiiisli.ilnr :nder .his will, hut also upon certain fher property which, for this purpose, my lie deemed to form part of this state, Succession duty will he imposed s in England, not upon the aggregate ii'opcity of a deceased, hut oil each

separate interest taken in that property In- the several persons who succeed, i whether legatees, devisees or otherwise The Rate duly will depend on the relationship between successor and deceased. Up lo iv very large amount, the widow, child, or grandchild pays no succession duty. Up to a large amount, ;t man who succeeds to his wile's pro perly pays ■> per cent. After Hint amount is reached, the rate is increased. Other relatives, not more remote than I cousin, nay a per cent. More remote relatives', ' strangers in blood pav HI !per cent. No succession duty is t : I parable on any property left in trust

for rliari able.'educational, religious, or other public purposes ill New Zealand. Although <-'!a;cs under tlflOf) lire exempt from estate duty, they pay succession ilutv in tile same tiiuiine.r us huger estates. H a deceased leaves u

whole estate worth WOO to a stranger in blood this succession duty will be 10 per cent., but if he leaves it to his widow or children it pays neither estate nor succession dntv. Ifa man leaves an estate worth .CluO.bdO, his widow and children will pav estate duty S percent., hut mi succession dntv. except in respect of that portion of the estate which exceeds ■• C-ifUIOI). If. however, he leaves his estate to a remote relative or a strainer in blond, it will pav estate duly

K per lent, and success 'mi d'uty graduated upon thi' total amount left' bv him. As regards gifts, duly will be imposed upon n.ifts made by a'poi'sun in his lifetime, with the exception of gifts less than CaUO in value and gifts for charitable use. The rale of dntv will be .1 per ci'iit, of the value of the gifts. The general aim of the new laws will be a relief of the burden imposed bv our death dnlv on small estates, where'they g I'hildrcn, and an increase in the burden on very large estates, which in many eases escape taxation wholly or in pari. The principle which has been followed is lint n!' iiulu-ing testators to dislribule tiie'r wealth rather than concentrate it upon one or a few persons, bv imposing mi iialeased dntv where the amount left any one person oveeods a stated sum.