Union Trustee Co of Australia Ltd v Federal Commissioner of Land Tax [1943] HCA 14

68 C.L.R.] OF AUSTRALIA.

[HIGH COURT OF AUSTRALIA.]

UNION TRUSTEE CO. OF AUSTRALIA LTD. Appetzant ;

AND

RESPONDENT.

THE FEDERAL COMMISSIONER OF ee

Land Tas: (Cth.)—Assessment—Deductions—" Joint owners '"—Relatives of testator— "Original share . . . under . . . will"—Settlement by beneficiary of her interest under will on trust for herself for life and after her death for her issue— Land Tax Assessment Act 1910-1940 (No. 22 of 1910—No. 15 of 1940), ss. 11 (2) (6), 38 (7), 384.

In order to obtain the benefit of s. 38 (7) of the Land Tax Assessment Act 1910-1940 all the " joint owners " in respect of whom sums are claimed by way of deduction must hold their respective interests directly under the will or settlement without the aid or intervention of any subsequent transaction.

_ Accordingly, where one of several beneficiaries in remainder under the trusts of a will assigned her interest to a trustee upon trust for herself for life and after her death for her issue, reserving to herself a power of revocation, held that she no longer had a share "under the will" within the meaning of 8. 38 (7) of the Act, and the deductions provided by that section could not be claimed.

Case SraTep.

On an appeal against an assessment of land tax Latham C.J. stated for the Full Court of the High Court a case which was sub- stantially as follows :—

1, Nathan Thornley died on 1st March 1903 and by his last will dated 15th May 1902 appointed William Boyd of Tarrone Warrong in the State of Victoria and the Union Trustee Company of Australia Ltd. (hereinafter called " the company ") his executors and trustees. Probate of the will was duly granted to the executors and trustees by the Supreme Court of Victoria in its probate jurisdiction. William Boyd died on 23rd June 1926, and the company is now trustee of

H.C. oF A.