O'Connor v Commissioner of Succession Duties (SA) [1932] HCA 28

MICONNOR se PLarntirr,

AND

THE COMMISSIONER OF SUCCESSION DUTIES (SOUTH AUSTRALIA)

DeEFENDANT,

OF AUSTRALIA.

[HIGH COURT OF AUSTRALIA.)

. APPELLANT ;

} RESPONDENT.

ON APPEAL FROM THE SUPREME COURT OF SOUTH AUSTRALIA.

Succession Duties—Choses in action—Gift by father to son—Resumption of possession 4 ¢ op A. of income and instruments of title by father—Whether son held properly to the entire exclusion of the donor—Succession Duties Act Further Amendment Act 1919 (S.A.) (No. 1396), sec. 18 (3)*—Succession Duties Act Further Amendment Mxs.BouRNe,

Act 1923 (S.A.) (No. 1576), sec. 10*.

In December 1923 the appellant's father executed transfers to the appellant of both shares in companies and mortgages of real property and communicated to the appellant his intention of giving these securities to him. Between December 1923 and April 1925 the income from the securities was received by a firm of solicitors who held the securities and acknowledged the appellant

as the client to whom they were accountable.

In April 1925 the appellant

gave a full power of attomey in favour of his father. In July 1926 the secur- ities were taken out of the hands of the solicitors and deposited with a hank at the place where the father resided. From that time forward until his death,

*Sec. 18 (3) of the Succession Duties Act Further Amendment Act 1919 (S.A.) 'as amended by sec. 10 of the Succession Duties Act Further Amendment Act 1923 provides: "Duty shall be chargeable upon the net present value of any property disposed of " by certain forms of disposition, including gift, "immediately upon such disposition, and irrespective of the time of the death of the person making the same, if the

person taking under such disposition does not immediately upon the disposi- tion bona fide assume the beneficial interest and possession of such property and thenceforward retain such interest and possession to the entire exclusion of the person making such disposition, and without reservation to such person of any benefit from or interest in such property by contract or otherwise."