Estate And Gift Duties Bill
Sir, —Shareholders in family companies, both public and private, should be alert to the alarming implications of Section 22 (1) and (3) of the Estate and Gift Duties Bill. It provides for a notional method of valuation for estate duty purposes in respect of certain minority holdings. The resulting value will in most cases be higher than, and unrelated to, market value. This means that estates may be called upon to pay death duties on share values which may never be sustained on sale. There is an exception in the case of minority holdings provided the commissioner is “satisfied" as to certain matters. Such protection is illusory, as the courts as a rule will not interfere with the exercise by the commissioner of such a discretion. If this measure becomes law, many minority shareholders in family companies will be well advised to reconsider their position in view of the additional estate duties such holdings may attract.—Yours, etc., CLAUDE EVANS. July 10, 1968.
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Press, Volume CVIII, Issue 31728, 11 July 1968, Page 16
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167Estate And Gift Duties Bill Press, Volume CVIII, Issue 31728, 11 July 1968, Page 16
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