Williams v Commissioner of Taxation (Cth) [1950] HCA 21

High Court of Australia Latham C.J. McTiernan, Williams, Webb and Fullagar JJ. Williams v Commissioner of Taxation (Cth) [1950] HCA 21

ORDER Question answered: Yes.

Cur. adv. vult.

The following written judgments were delivered:—

June 21 Latham C.J.

This is a case stated under the Estate Duty Assessment Act 1914-1942, s. 28. The question which is raised by the case is whether certain moneys which were paid under an insurance policy on the life of R. B. E. Craig deceased or the policy itself should be taxed under s. 8 (3) (b) of the Act as being personal property of the deceased or under s. 8 (4) (f) as being money payable to his widow under a policy of assurance on his life upon which policy he had paid the whole of the premiums. His widow was his executrix and was the sole beneficiary under his will. The appellants, as the personal representatives of the widow, are his personal representatives and they have appealed to the High Court from an assessment of his estate under the Act.

Section 8 (3) provides that for the purposes of the Act the estate of a person comprises (inter alia):—"(b) his personal property, wherever situate (including personal property over which he had a general power of appointment, exercised by his will), if the deceased was, at the time of his death, domiciled in Australia."

Section 8 (4) provides that:—"Property— (f) being money payable to, or to any person in trust for, the widow, widower, children, grand-children, parents, brothers, sisters, nephews or nieces of the deceased under a policy of assurance on the life of the deceased where the whole of the premiums has been paid by or on behalf of the deceased, or, where part only of the premiums has been paid by or on behalf of the deceased, such portion of any money so payable as bears to the whole of that money the same proportion as the part of the premiums paid by or on behalf of the deceased bears to the total premiums paid, shall for the purposes of this Act be deemed to be part of the estate of the person so deceased."