Perpetual Trustee Company (Limited) v Federal Commissioner of Taxation [1932] HCA 19

Sypyey, April 8,

MELBOURNE, May 30.

Gavan Duffy C.F, Rich, Starke, Dixon, Evatt and McTiernan JJ.

PERPETUAL TRUSTEE COMPANY (LIMITED) — Appen

HIGH COURT

[HIGH COURT OF AUSTRALIA.)

any taxes," present or future, imposed by Commonwealth or State—Bondho domiciled in Australia at date of death—Value of bonds included in ass estate—Liability to duty—Contractual obligation — Exemption from " stamp or other tax" —Estate Duty Assessment Act 1914-1928 (No. 22 of 1914-1

20 of 1911—No. 2 of 1927), sec, 524—Loans Securities Act 1919 (No. 25 of 19 sec. 3.

Sec. 52a of the Commonwealth Inscribed Stock Act 1911-1927 provides "stock certificates, stock certificates to bearer, scrip certificates to bearer 'Treasury bonds and coupons, transfers of stock or Treasury bonds documents relating to the purchase or sale of stock or Treasury bonds not be liable to stamp duty or other tax under any Jaw of the Common or a State unless they are declared to be so liable by the prospectus relating the loan in respect of which they are issued or used."

In an assessment for estate duty was included the value of certain gold dollar bonds which the deceased, who was domiciled in Australia, possesse at the time of his death. The bonds were issued by the Commonwealth in respect of an external loan of $75,000,000 raised by it in the United States of America and had been obtained there at the time of issue by the deceas agent. In each bond, as also in the prospectus relating to the loan, Commonwealth promised to pay the bearer in New York "in gold coin of United States of America of the standard of weight and fineness existing on" 15th July 1925 a specified number of dollars and interest "without deduction for any taxes now or at any time hereafter imposed by the Commonwealth of Australia or by any taxing authority thereof or therein." 'The executor — claimed that protection from estate duty in respect of the bonds was afforded by sec. 52a of the Commonwealth Inscribed Stock Act 1911-1927, and also the contractual obligation entered into by the Commonwealth.