Elder's Trustee & Executor Co Ltd v Commissioner of Taxation (Cth) [1951] HCA 65

High Court of Australia Kitto J. Elder's Trustee & Executor Co Ltd v Commissioner of Taxation (Cth) [1951] HCA 65

ORDER Appeal allowed. Assessment set aside. Liberty to the respondent to re-assess the appellant on the basis that the 660 shares of £12 15s. 0d. each held by the deceased at her death in the Beltana Pastoral Company Limited are to be valued at £2,722 10s. 0d. Respondent to pay one-quarter of the appellant's costs of the appeal, such costs including the costs of the shorthand notes. Liberty to apply.

Cur. adv. vult.

J Kitto delivered the following written judgment:—

Nov. 5 Kitto J

This is an appeal under s. 24 of the Estate Duty Assessment Act 1914-1942 Cth. against an assessment by the Deputy Commissioner of Taxation, Adelaide, of the estate duty payable in respect of the estate of one Mabel Fairfax Braund deceased, who died on 17th October 1946. The appellant company is the administrator of the estate.

The estate included 660 shares of £12 15s. 0d. each, all fully paid, in the capital of the Beltana Pastoral Company Limited, and 2,720 shares of 12s. each, all fully paid, in the capital of Milo Pastoral Company Limited. The appellant made a return under the Act, in which it attributed to the shares in the Beltana Pastoral Company Limited a value of £1 8s. 2d. each, and to the shares in Milo Pastoral Company Limited a value of 7s. 7d. each. The deputy commissioner made an assessment of estate duty on the footing that the value of the former shares was £5 4s. 10d. each and the value of the latter shares was 14s. each.

To this assessment the appellant lodged an objection, contending that the values so adopted by the deputy commissioner were excessive. The objection was disallowed, and at the request of the appellant it was treated as an appeal and forwarded to this Court. At the hearing, it was announced that agreement had been reached in relation to the shares in Milo Pastoral Company Limited, and accordingly the only matter for determination is the value of the shares in the Beltana Pastoral Company Limited (which I shall call the company) as at 17th October 1946.