Atkinson v Commissioner of Taxation (Cth) [1951] HCA 64

High Court of Australia Dixon, Webb and Fullagar JJ. Atkinson v Commissioner of Taxation (Cth) [1951] HCA 64

ORDER First question in the reference from the Board of Review answered—Yes. No order as to costs of the reference.

Cur. adv. vult.

The Court delivered the following written judgment:—

Nov. 5 Dixon, Webb and Fullagar JJ.

This is a reference by a Board of Review made pursuant to s. 196 (2) of the Income Tax Assessment Act 1936 as amended, on the request of the commissioner. The taxpayer is the widow of Sydney Atkinson, who died 10th August 1940. She is the executrix of his will and takes thereunder as sole beneficiary. Over six years before his death her late husband had obtained from the Prudential Assurance Company Ltd. a policy of insurance called a "heritage policy". He was then forty years of age. The insurance commenced as from 18th December 1933 and the policy stipulated for a half-yearly premium of £21 18s. 8d. payable until 18th June 1953, a period of twenty years, or until the previous death of the insured. If the premiums were paid, then the company covenanted to pay Atkinson's executors administrators or assigns "the benefit or benefits", as the policy expressed it, set out in the policy substantially thus:—(1) In the event of the death of Atkinson within such twenty years, £4,120 diminished by the sum of £39 for every completed period of three months that Atkinson had survived 18th December 1933, payable as follows (a) £100 on death (b) £39 in addition on death and a similar payment at the expiration of each period of three months commencing subsequent to death and completed on or before the last day of the twenty years (c) £900 on the last day of the twenty years calculated from 18th December 1933. (2) In the event of the death of Atkinson after the expiration of the twenty years, £1,000 payable on death.