DEATH DUTIES.

Taranaki Daily News, 8 September 1922, Page 6

DEATH DUTIES.

EFFECT OF NEW ACT. DECISION OF SUPREME COURT. A decision having an important bearing on the death duties chargable against an estate under the Death Duties Act of 1921 was given iby His Honor Mr. Justice Chapman at the -Supreme Court at New Plymouth yesterday. Under the Act referred to an additional 10 per cent, was made payable on all bequests exceeding £lOOO when the beneficiaries resided out of New Zealand, and, in a case stated, John Christoffel appealed against the Commissioner of Stamps for a remission of the duty payable on the bequests of the late James Thomson, farmer, New Plymouth, who died in December *27, 1921. The deceased left his estate to his cousins, all resident in Sc J tian 1, the share of each amounting to £1291 7s 6d. Succession duty was assessed at 5 per cent and the additionil 10 per above mentioned made a total of £774 i6s fid The appellant objected to the assessment, but the objection ».as disallowed, hej.ce the appeal. Thf question for the Court way. whether the assessment was correct, and, if not, what was the correct assessment. Mr. C. H. Croker appeared for the appellant and Mr. C. H. Weston for the respondent. Mr. Croker’s main contentions were that the duty was payable by each successor separately and not by the beneficiaries as a whole. Also, that each successor had received only a few pounds over £lOOO and should therefore be made to pay only £2O duty instead of £ll2, while in any case, if the successors took jointly they were entitled to an exemption of £lOOO on the estate. In his decision, Mr. Justice Chapman said that the question was whether the £lOOO was to be deducted and the balance subjected to the additional duty, or whether the proper reading of the provision of the Act was that when the succession was a sum exceeding £lOOO there was no exemption. Mr. Weston did not suggest that if they were entitled to any exemption the successors were not each entitled to have their successions exempted to the ektent of £lOOO. His Honor considered that only the surplus above £lOOO was liable to the additional duty, and. after analysing the wording of the sections quoted by Mr. Weston, gave judgment accordingly, costs being allowed at £5 ss.