Boan v Commissioner of Stamps (WA) [1946] HCA 36

226 HIGH COURT

[HIGH COURT OF AUSTRALIA]

BOAN AND ANOTHER . . =.) \). 3) Seem ReEsPONDENTS, AND THE COMMISSIONER OF STAMPS (W.A.) . Rusronp APPELLANT,

ON APPEAL FROM THE SUPREME COURT OF WESTERN AUSTRALIA.

H.C. or A, Succession Duty (W.A.}—Shares in proprietary company—Valuation of

1946, and preference shares—Administration Act 1903-1941 (W.A.) (No. 13 of 19 Ww No. 55 of 1941), ss. 110 (1), 112—Partnership Act 1895 (W.A.) (59 Vict. No. Prrtu, arB3;, Sept. 4, 5. acti Be oe F Paden ction 110 (1) of the Administration Act 1903-1941 (W.A.) provides t Metsourye, in the valuation of the share or interest of any person in any partne Oct. 11. for the purpose of this Act, the share or interest of the partner conee Tatham O7., shall be that sum which bears the same proportion to the total capital of th

Rich and Dixon partnership as his fractional share bears to the whole number of shares in ty partnership. In this section total capital means the value of the asset the partnership less the liabilities of the partnership. Section 112 p that in the valuation of the shares of a shareholder in any proprietary com such shares shall be valued as if the company were a partnership and the holders were partners.

At the time of his death a deceased person owned a number of pi shares and a number of ordinary shares in a company the assets of less its external liabilities, exceeded in value its issued share capital.

Held, by Rich and Dixon JJ. (Latham ©.J. dissenting), that under s. the share or interest of a deceased partner is to be taken to be that sum bears the same proportion to the value of the assets of the partne liabilities, as his proportionate or fractional share in such assets less lial bears to the value of such assets less liabilities; that as a result of s, 112 interests in the proprietary company's assets are notionally transformed in