Thomson v Commissioner of Taxation (Cth) [1949] HCA 63

High Court of Australia Webb J. Thomson v Commissioner of Taxation (Cth) [1949] HCA 63

ORDER Appeal dismissed.

Cur. adv. vult.

J. Webb delivered the following written judgment:—

Dec. 16 Webb J

This is an appeal against an assessment of estate duty in the estate of the late Alexander William Thomson, a grazier, who died at Hamilton, Victoria on 6th June 1946, leaving property which was returned at £95,100 16s. 11d., but to which the respondent commissioner added two sums of £10,000 and £6,000 as liable to estate duty. Although these two sums were not returned the commissioner was informed by the executors of the facts concerning them, but also that the executors claimed that these two sums were not actually or notionally part of the deceased's estate. When the assessment to estate duty was issued it was accompanied by an alteration sheet showing that the two amounts were included as part of the estate. They were described in this sheet as "Settlements £16,000."

In May 1939 the deceased who then had a considerable credit in his current account with the National Bank of Australasia's branch at Hamilton told the relieving manager and the accountant of the branch that he wished to place money on fixed deposit in two amounts, one in his own name and that of his son, James Thomson, and another in his own name and that of his daughter, Kathleen Cameron, a married woman; that he wished the two children to get the benefit of the money; but that he wanted to retain control during his lifetime. Those bank officers read and explained to the deceased the bank's regulations relating to fixed deposits. The regulations provided that deposits for third parties might be accepted on the applicant signing a requisition slip, but that no interest on the deposit would be payable until the payees had first provided their signatures and proved their identity, and that these conditions should be made known to the applicant on his signing the requisition slip. The regulations further provided that deposits might also be accepted in joint names on the signature of one party only from persons desirous of retaining full control of the moneys during lifetime but thereafter benefiting a friend or relative, who need not have earlier knowledge of the matter. The bank regulations also provided that all fixed deposits, when due, should be transferred to Matured Fixed Deposit account.