Federal Commissioner of Taxation v Sagar [1946] HCA 6

T1CLR.

OF AUSTRALIA.

{HIGH COURT OF AUSTRALIA.]

FEDERAL COMMISSIONER OF TAXATION

SAGAR

AND

APPELLANT ;

. RESPONDENT.

Estate Duty (Cth.)—Assessment—Valuation of shares in company—Company not H, ©. oF A. listed on Stock Baxchange—Hstate Duty Assessment Act 1914-1942 (No. 22 of

1914—Wo, 18 of 1942), s. 164.*

Section 164 of the Estate Duty Assessment Act 1914-1942 does not operate

automatically.

If the section is applied, par. (1) (a) does not require the

valuation to be made on the assumption that the company is listed on the

Stock Exchange at the date of de:

ath :

it merely refers to the memorandum

and articles of association satisfying the requirements of the committee of the

* Section 16a of the Hstate Duty Assessment Act 1914-1942. provides :-—

"(1) Where the Commissioner is of the opinion that it is necessary that the following provisions should apply for the purpose of assessing the value for duty of an estate for the purposes of this Act, the following provisions shall apply —

(a) the value of shares or stock in any company, whether incor- porated in Australia or else- where, shall be determined upon the assumption that the memorandum and articles of association or rules of the company, at the date of death, satisfied the requirements of the committee or governing authority of the Stock Ex- change 'at the place where the share or stock register is situate for the purpose of enabling that company to be placed on the current official list of that Stock Exchange ;

(6) no regard shall, in determining the value of any such shares or stock, be had to any pro- vision in the memorandum or articles of association or rules

VOL. LXx1.

of the company whereby or whereunder the value of the shares or stock of a deceased or other member is to be determined ;

(c) where the estate includes any shares or stock in any com- pany the shares or stock of which are not or is not quoted in the official list of any Stock Exchange, the Commissioner may, in his discretion, not- withstanding anything con- tained in the last two preced- ing paragraphs, adopt as the value of any such shares or stock such sum as the holder thereof would receive in the event of the company being voluntarily wound up on the date of death.