Matrimonial transfer change

Press, 13 July 1984, Page 24

Matrimonial transfer change

The Government intends to amend the Income Tax Act to ensure that no tax liability need arise from a transfer of livestock between spouses under a matrimonial agreement, according to the Minister in charge of the Inland Revenue Department, Mr John Falloon.

Mr Falloon said the amendment would be in line with the original intention of the matrimonial property amendments made to the Act last year. Mr Falloon said that it had become apparent that in some cases the person who received the transfer in a matrimonial transaction was required, under present legislation, to adopt a higher standard value than was being used by the person who was doing the transferring. The effect of this to create a book

profit which was assessed for income tax in the hands of the person with whom the stock originated. Mr Falloon stated that the amendments passed in 1983 were intended to recognise the property rights of a spouse and not to increase any taxpayer’s tax burden.

In line with this, the legislation would be amended to allow the recipient to adopt the same standard value, for livestock transferred in a matrimonial agreement, as was adopted by the originator of the action. To ensure that all matrimonial transfers are covered by this amendment, Mr Falloon said it would apply in respect of livestock transferred in accordance with a matrimonial agreement made on or after . July 28, 1983. y