Oakes v Commissioner of Stamp Duties (NSW) [1953] UKPCHCA 1

89 C.L.R.] OF AUSTRALIA. 37:

[PRIVY COUNCIL.]

OAKES ; ; i z ' ' : APPELLANT ;

APPELLANT, AND

COMMISSIONER OF STAMP DUTIES (N.S.W.) | _ResponDENT. "RESPONDENT,

ON APPEAL FROM THE HIGH COURT OF AUSTRALIA.

Death Duty (N.S.W.)—Gift made by deceased in his lifetime— Declaration of trust Privy —Reservation of benefit—Remuneration for managing trust property—Beneficial COUNCIL. interest—Deceased and his children co-beneficiaries in equal shares—During 1953.

minority of children used for their maintenance and education—Stamp Duties vs

'Act 1920-1949 (N.S.W.) (No. 47 of 1920—No. 37 of 1949), s. 102 (2) (@)*. O% 2%, 12,

By a deed of trust made in 1924, F. declared that he would hold certain Dec. 3. grazing lands in New South Wales and the rents and profits thereof upon | 14. p

orter, certain trusts for himself and his four named children as tenants in common ae of A ; s e B enrytown, in equal shares, and wide powers were given to F. as trustee, inter alia, to Reid, Tucker

f and Asquith sell, invest, manage, lease, mortgage and purchase the trust property as well of IBiEnonetonel

as to reimburse himself for all expenses incurred, and to receive remuneration for work done, in the administration of the trust. In 1928 the property was sold and the proceeds invested in another grazing property subject to the same trusts. Under the powers so conferred upon him, F., until his death in October 1947, managed the trust property on which he resided and conducted a grazing business, fixed and received amounts as remuneration of his management, and after allowing these sums and other necessary expenses, divided the net income between himself and the four children in equal shares. The children's shares were applied by the deceased during their minority for their maintenance and education, and he paid them to the children when they came of age. On the death of the deceased the question arose whether the value of the whole of the trust property, or only one-fifth thereof, was to be included in his estate for the purpose of death duty under s. 102 (2) (d) of the Stamp Duties Act 1920-1949 (N.S.W.).