OVERHEARD.

Dominion, Volume 3, Issue 910, 1 September 1910, Page 5

OVERHEARD.

AT THE DEATH DUTIES : office. . - HOW THE NEW ACT WORKS, ; '.;•,".• ■'■■■■[■'■":' ~i-- "■'■' V'- ■■ .' ! -'.- : ;' [The ■ manner in which increased taxation will bo extracted from widows and other beneficiaries under, the new death ; . duties is, well illustrated -in Skis eciies of ■■■-.-.; imaginary conversations with the Minister. The information afforded as to the r amount cf duty now collectable as com- - pared with the amount collected nnder the old Act has been checked by a mem- . ; ber of the legal fraternity and passed a»\ ;:; correct.] , . , .'■' :. A young woman entered,. obviously a j . widow. "-.■:'": ":■■■'■ '■'.:■■ .■..'■ <■'"'.: "Mr. Minister, the letters of adminis-: '■;.•; tration'. for' my late . are wanted,:.. ; but the administrator '; informs me .he . :'■ .cannot get them until I pay you the sum of .£640 for, death: duty... . My husband; ->: died without a will, leaving, farm ; and, .' ; stock, which you value at ,fi12,000. s I •;•-■ understood:from him before he died.that ;-■,;: theduty would be about .£250, which I, ..• can pay, but I have three young, chil- ' :''[ drento lookafter, and I cannot pay ,£640 ::, all at, once." ■!■'.. : "-'. '' : ' "Why, your husband must, have esti- . ..,-.■'. ; mated the duty under the old .Act passed .'..; in the early ''eighties—the bad-old. Tory..".;/;'; days," remarked the Minister. .' ':•:■ ■''■:■]; ■ "Let'me : explain:' Your, : husband .died". , ..-; intestate, ; so you yourself receive ;one-; V.':' third of his estate and'ypur children: two-■ ■■" : [) thirds'. Under the bad old, Tory'A.ct there' .:■; would * have been no ; ,duty. on your , owa ' ; ;. share, while half the' ■ on -your phil--;:!', dren's, share would have been, remitted ;. for their benefit,'.a most complicated 1 and ': .? ; objectionable calculation you lvill admit ; ? Now this Government is a Liberal.Gov- :•::-. erninent and has simplified all that. Wd - find it much easier to extract _ money .;;,-■: from a farmer's property offer hisdeaffi ■■'■; -'-. than during, his , lifetime. .All good farm- '..:■•; ers are Tories, ■ and' Tories are alwajT- . ■.; complaining that the Government squaiH . : " der their money. We.caanot always gee :-> what we-would like while these* 'Tory;';;•-'■. farmers'are living. ThejLiberal method,:, u, therefore,. is te take a liberal toll from v his widow "and children; : The old, Tory : ■) duty in,your case would havo been-'*2Btt,. ■- : calculated thus: ':'■■■- . ■' "■ •;',; ■' ,; ..- ././' : .. -"■ : ". Total value : of estate. ; ..,£12,000 -'■>;:.'-.^r.■: : Less amount to widow ......' : , 4,000 •.,;.;;..; ;;. * Duty at 7 per; cent 0n....:..-.8,000 C''-'^.'.-i\ Less Broportiqh ' of: duty ;■; . ■ , . ■':'■■.:■<;■. .: allow'ed , to : . children, .. .- ,•:.■. .\. ■-'-. .■;-' : half: „.........:..;.;....;.....:.; s>^, , :,' ; ■::v;;Totaiduty,.;'..;..:.;:;.... ; ; -;;;.' ] £m-; : :,.. Tho Liberal duty;- on'the other haDd.iei: : ; much'more easily calculated. -You ; sim-; ply take 5 1-3 per cent, on ; ; and there'you aTe. J ' , .' . . .■■..•.. ■; ..".■,...'; "But sir, is it not true.that a widow:. : : is exempt from duty-even ..under; the ' ■; new Act, if, : as in .my, case, she only gets; ■;:;. : iSH)00?":: ' -"■'""' '."■'■''"■'.':'•■' ;'■-'•''•■''■•■■" "Certainly not, if the:total value of the '■:;:. , dutiable, estate is more than: Let .■. me refer you to Section 13 of the Liberal. ' nreasurevof 1909."; - .:.;,: J :- '-,0.-<'^.LJ : "Do: the increased duties; apply -to; all ;f . estates?" ' ■•. ;."•. '.- .■ ■■'• ; V ; ■-.■'■■ -'.v'^'-'."' "Certainly- iibt.-'i-Let4ne. summarise..the,. v ' liiberai enactnient,for;.you. 'We'haveim-; ~.; nosed heavy duties'on a widow unless she -.. succeeds, to less than .£SOOO .out>.of-;an::: •■ -estate the total value of which is-^10,000:.;'-. or-less. For fe,j,.'children we have reduced'..:. tho duty, on estates' of \£loo to ; r ;' sums varying from'. ;to £i; on estates --; of from to .£IOOO, we ,haye reduced , ,- the duty by sums varying from-5 shillinga ;. . -to-25'"shillingsi and on.'.estates of:.rrom r -. : , ifilOOO'.to we,get our own back andi: moreby increasing theduty in sums vary-,". :; ing -from 10s;: to ;jE80," : . Minrster ; '■- ■ "smiTed : benignly:on tho'b^e^ldered .widow,' j ;' : . and proceeded: ' -. : : i--.' .- ; r ■'.-■ ■ :" ; >'"Xou -consider 'the ..increases ■ veryose-'..-.■;■; vere'oil'ihe children. .'Nonsense; think.ot. \. •,.-. the. reduction.,'. .Wliy.'.only- yesterday .a : "-: vonn" fellow was; in'here whose '.father,. \: left "W-'--a''house; in Brooklyn- valued ..- at iOOOi He was so'-grateful.for.the.lib- ' ,;, eral reduction of five*.shillings that : he ; .;, asked me- if I thought "the : State., spare it. . He "also said 'he:.wquld;taww t \- how to ; vote at the, next .'election,- ...Ha; : :>: gratitude, was" quite", overpowering.: „ l'he ..-, • truth is, , madam; your "husband was' one ,■ , : ■ of those thrifty menithatit is undesir-./.:;. able to encourage. 'The only useful v pur- ■ f pose they serve is' in , the. payment;o£... ; ■ taxes of this' kind. .Had-he known sum- ; : ,;;. cient to raise a; few; thousands on hie property and .to., enjoy .himself instead v y of providing for.; hisYfandy then;- you:--, would'have had far-loss duty to did not' likeVborrowing you say!-. -Non-,, ..•;, sense Think of the' Government—why, =.:■■' we owe ; 7s millions'^or ,thereabouts, and ; : .; it does 'not .worry us:" .J, ; ,•: (?: .-';..:; : vV V- "