Perpetual Executors and Trustees Association of Australia Ltd v Federal Commissioner of Taxation [1948] HCA 24

Sons Dist Nati plSrmism, APP Foll Appl WatalPoote 'MEual Poole ist National ApolSmlth Soutve Fall Ausinalian ad Saif Py Etec (eae A 728) 181 fest Sroadesting Ber eeeY bun VR ommision Project Blue i 1996 ir Serle 0990

waitin any FAY AIRS

REPORTS OF CASES

DETERMINED IN THE

HIGH COURT OF AUSTRALIA

(HIGH COURT OF AUSTRALIA.]

PERPETUAL EXECUTORS AND TRUSTEES

ASSOCIATION OF AUSTRALIA LIMITED > ApprLianrs ; AND ANOTHER

AND

FEDERAL COMMISSIONER OF TAXATION . ResponpEnt.

(THOMSON'S CASE.)

Estate Duty—Assessment—Commonwealth bonds—Gold dollar bonds issued in H.C. or A.

United States—Principal and interest payable in New York without deduction 1948. for any Australian taxes—Bonds purchased by person domiciled in Australia = ~~ —Federal income tax paid on interesi—Death of bondholder—Payment of MuvBournn, £6,814 to executors by Commonwealth Treasury as refund of tax paid on bond June 3, 4, 7, interest—Amended assessment including £6,814 in estate of deceased as value of © right of action for unliquidated damages—Loan Securities Act 1919 (No. 25 of AvELAIDE, 1919), s. 3—Income Tax Assessment Act 1936-1944 (No. 27 of 1936—No. 28 Sept. 22.

of 1944), ss. 170, 172, 173, 177—Hstate Duty Assessment Act 1914-1942 (No. 22

Latham C.J.,

Di of 1914—No. 18 of 1942), ss. 8, 20, 22, 26, 27. SENS Wier Williams JJ.

For the purpose of the Hstate Duty Assessment Act 1914-1942 an expectation on the part of a deceased person of a benefit or payment, however well founded or certain, does not amount to property unless it rests on an actual right, legal or equitable, or a claim to such a right. 'The receipt by his legal personal representatives after his death of the expected benefit or payment will not make it necessary to include it in the value of the estate: Commissioner of Stamp Duties (N.S.W.) v. Perpetual Trustee Co. Ltd. (Watt's Case), (1925) 25 S.R. (N.S.W.) 467; 38 C.L.R. 12, followed and applied.