Thomson v Federal Commissioner of Taxation [1949] HCA 63

HIGH COURT 1949.

[HIGH COURT OF AUSTRALIA.) THOMSON AND ANOTHER 4 : ; . APPELLANTS ; AND

FEDERAL COMMISSIONER OF TAXATION . Responpsnt.

H.C. or A, Estate Duty (Cth.)—Assessment—Property "comprised in a settlement made by 1949. : deceased . . . under which he had any interest . . . for his oe life" —Beneficial interest of deceased which by a settlement made by him passed

MExpour: Oct. 18.

Sypyey,

on his decease to another person—Money placed on fixed deposit in bank by deceased in joint names of himself and son—Complete control of money deposited retained by deceased during his lifetime—Capital on maturity transferred to, and until death of deceased remaining in, bank's matured fixed deposit account— Payment thereafter to son—Hstate Duty Assessment Act 1914-1942 (No. 22 of 1914—No. 18 of 1942), ss. 3, 8 (4) (c), (e)-

The deceased placed a sum of money on fixed deposit with a bank in the joint names of himself and his son, He told officers of the bank that he desired that after his death his son should get the benefit of the money but that he wanted to retain control of it during his life. 'The deposit was made in the manner provided by the rules of the bank for such a ease, so that during his life the deceased retained complete control of the principal sum and all interest payable on it until its ultimate maturity was paid to him. The deposit came to maturity and was renewed on several occasions. Ultimately it was transferred to the bank's matured fixed deposit account (in which it did not bear interest), and the deceased allowed it to remain there until his death.

'Thereafter the principal sum was paid to the son.

'Held that from the time of the first deposit a trust was created in respect 'of the sum deposited ; although the trust property comprised a succession of choses in action, there was not a succession of trusts, and even after the transfer to the matured deposit account the deceased and his son held the chose in action on the same trusts as theretofore. 'The son had no beneficial interest during the life of the deceased ; the beneficial interest passed to the son on the death of the deceased and was, therefore, deemed to be part of the estate of the deceased by reason of s. 8 (4) (¢) of the Estate Duty Assessment Act 1914-1942. Alternatively, if the correct view was that the son had a