A GIFT AND AN ANNUITY.

Auckland Star, Volume XLVII, Issue 67, 18 March 1916, Page 6

A GIFT AND AN ANNUITY.

LEGACY DUTY CLAIMED. COURT REJECTS DEMAND. (By Telegraph—Press Association.) WELLINGTON, this daj. In the Supreme Court to-day Mr. Justice Chapman gave judgment in the case Commissioner of Stamps again6t Alexander Begg and Charles Begg. executors of the will of Jess Begg. of Dunedin. The claim was to recover £R,SII 15/0 and interest alleged to be payable as duty in respect of the estate of testatrix, less £309 14/!), since paid by the executor. The sum claimed was duty upon £68,117 13/10, alleged to be the Value of some shares in a company called Charles Beag and Co.. Ltd.. which the Gommiesione.asserted formed part of the estate of testatrix as defined by the Death Duties Act, 1909. Long before her death Mrs. Begg transferred her shares in the company to her children, and the lattrr decided to grant her an annuity. Hi«s Honor said that if the annuity was binding upon the children or any of them this was because the grant of it, evinced by resolution, was really part of the same transaction as the gift. The circumstances on which the Commissioner relied was that the annuity resolution was adopted before the gift was finally mode, and that it therefore became consideration for the gift which took effect when the allotment was made, and the shares were issued pursuant to it. His Honor dissented at length from that view, and expressed the belief that Mr*. Begg evinced no actual intention o£ accepting the annuity. Judgment was , given for *> defendant, with coste according to ecale.