Trustees Executors and Agency Company Limited v Federal Commissioner of Taxation [1941] HCA 36

Disap Cons

ale V Iders 'ederal vustee &

Commissioner | Pesci ay tae" 1535) 838 8] EPRI

7 Co

TRUSTEES EXECUTORS AND AGENCY COM-

THE FEDERAL COMMISSIONER OF TAXA-

icars Vv Commissioner

Stal a"

HIGH COURT [1941.

[HIGH COURT OF AUSTRALIA.]

PANY LIMITED APPELLANT ;

AND

TION : | Resrosnen

H. C. or A, Dstate Duty (Cth.)—Gifts within twelve months of donor's death—Gift of cash trans-

1941, —

Metsourtne, Ocheotip

SYDNEY, Nov. 21.

Rich, Starke, McTiernan and Williams JJ.

muted into shares—Value for duty purposes—Deductions—State probate duty— Estate Duty Assessment Act 1914-1928 (No. 22 of 1914—No. 47 of 1928), secs. 3*, 8 (4), 17*—Administration and Probate Act 1928 (Vict.) (No. 3632), secs. 173, 178.

Sec. 8 (4) of the Federal Estate Duty Assessment Act 1914-1928 provides as follows :—" Property (a) which passed from the deceased person by any gift inter vivos or by a settlement made before or after the commencement of this Act within one year before his decease : shall for the purposes of this Act be deemed to be part of the estate of the person so deceased."

Within twelve months of his death T. sold his business to a company formed to take it over. TT, and each of his sons applied for shares in the company, and portion of the amount received by T. on the sale of the business was used to pay for these shares. '. settled a sum equal to the balance of the purchase money on trust for his wife and daughters, and by the trust instrument the trustee was empowered to invest the money settled in the shares of any company with T.'s approval. The settled money was invested in shares in the company which took over T.'s business. At the date of T.'s death the shares, for which one pound each had been paid, were worth only eighteen shillings each.

the deceased at the time of his death

*The Estate Duty Assessment Act 1914-1928 provides as follows :—Sec. 3: "In this Act, unless the contrary intention appears— 'Debts' includes probate and succession duties payable under any State Act, but does not include voluntary debts." Sec. 17: "For the purpose of assessing the value for duty of the estate of any person dying after the commencement, of this Act, all debts due and owing by