Commissioner of Succession Duties (SA) v Executor Trustee and Agency Company of South Australia Limited [1947] HCA 10

a bey) Appl sé

Fol Cons Case [1999] Bromley Kener ® Mer Sr 'oye 4 cng" AMTA 130 'tricorn investments v ie fermen pyle pane weg Nite mgaey Gol 12 Fame 73 ae fos i eens Bps)2 VR 332 fos PLR 1a td Bela Pry Led wAnster (ety 358 HIGH COURT (1947.

[HIGH COURT OF AUSTRALIA.}

COMMISSIONER OF SUCCESSION DUTIES APPELLANT ; (SOUTH AUSTRALIA)

RESPONDENT, AND

EXECUTOR TRUSTEE AND AGENCY COM- PANY OF SOUTH AUSTRALIA LIMITED > ResponpEnts- AND OTHERS APPELLANTS,

ON APPEAL FROM THE SUPREME COURT OF SOUTH AUSTRALIA.

H, C, or A. Succession Duty (S.A.}—Assessment—Valuation of shares in company—Shares not

1947. listed on stock exchange—Matters for consideration—Succession Duties Act 1929- ed 1942 (S.A.) (No. 1898—No. 23 of 1942). Mxvvourye,

'A deceased person's estate, which was subject to duty under the Succession

nae Duties Act 1929-1942 (S.A.), included shares in the T. company, which carried Sy Y, on business in South Australia. 'The shares were not listed on a stock exchange May 8. and the articles of association contained no restrictions upon the transfer of Pees its fully paid shares. A large number of shares in the T. company were held Rien, Starke) by the I. company in which the deceased held a life-governor's share. This Wiliams Jy, share gave the deceased and his executors the right to three-fourths of the votes

in the L. company.

Held, (1) by Latham C.I., Rich, Dixon and Williams JJ. (Starke J. dissenting), that the test to be applied in valuing the shares was substantially the same as that applied in determining the compensation to be paid for the compulsory acquisition of property under statutory powers.

McCathie v. Federal Commissioner of Taxation (1944) 69 C.L.R. 1, applied.

Held (2), by the whole Court that, in valuing the shares in the T. company, the life-governor's share in the I. company being a share in a different company and therefore a different asset, should not be taken into consideration, not- withstanding the voting rights attaching to it.