Fadden v Deputy Federal Commissioner of Taxation [1943] HCA 20

76 HIGH COURT [1943.

{HIGH COURT OF AUSTRALIA.] FADDEN AND ANOTHER . ' < . APPELLANTS ;

AND

THE DEPUTY FEDERAL COMMISSIONER \

OF TAXATION ..© iat), 'oe mieeeesneeet', Aims uae H.C. or A. Hstate Duty (Cth.)—Assessment—Bonds deposited in bank in joint account—Deposit 1943. subject to revocation—Gift—Beneficial interest—Joint tenancy—Survivorship— SH Duty on one-half value of bonds—Hstate Duty Assessment Act 1914-1928 (No. Brisbane, 22 of 1914—No. 47 of 1928), s. 8 (4) (d). July 26. ih Tn accordance with the deceased's instructions certain bonds were deposited Sypwny, in three joint accounts at banks in London on behalf of the deceased and Aug. 13. his three daughters, there being an account in respect of himself and each ene daughter. No withdrawals were made by the deceased or his daughters and

the interest was paid into his own account, out of which he made payments by way of allowances to his daughters. The deceased retained the right to withdraw the bonds. In assessing estate duty the Deputy Federal Commis- sioner of Taxation claimed that the bonds were the property of the deceased. On appeal against the assessment,

Held :-—

1. That the deceased made gifts to his daughters of a joint interest in the bonds and that the gifts were perfected by the delivery of the bonds to the banks to be placed in joint accounts and were valid although subject to revocation.

2. That the deceased held a beneficial interest immediately before his death in a joint tenancy in the bonds, which formed part of his estate within the meaning of s. 8 (4) (d) of the Hstate Duly Assessment Act 1914-1928.

3. That the value of the beneficial interest held by the deceased in the bonds was equal to half the value of the bonds at the date of his death.

Apprat from the Deputy Federal Commissioner of Taxation.

This was an appeal under s. 24 (4) of the Hstate Duty Assessment Act 1914-1928 by Arthur William Fadden and Patrick Collins, the executors of James Simpson Love deceased, against the decision of the Deputy Federal Commissioner of Taxation on the executors'