STEP-GRANDCHILPREN

Evening Post, Volume CII, Issue 35, 10 August 1921, Page 6

STEP-GRANDCHILPREN

STATUS REGARDING DEATH .DUTIES. ;.■-■•' ' '

Whether ' a step-grandchild is ; the equivalent 1 of, a'grandchild in the eye_'of the law when death duties are ' being assessed is the, question involved in a case presented to Mr. Justice Sim, Act-ing-Chief Justice, this morning. The appellant.is Dr. P. 0. Andrew, of Ohawai, and the respondent the Commissioner of Taxes. Mr. P. B. Cboke appeared for the appellant and Mr. M'Gregor/ Solici-tor-General for the respondent, the Commissioner of Stamp Duties. ' ' '

The case was stated by the Commissioner under section 60 of the Death ( Duties Act of 1909. On 4th January, 1920, Emily Sarah Andrew, late of Wellington, died, ami by her will the residue of the estates, amounting to' £45,960 168 lOd, was to be divided-equally between her several step-grandchild Ten, the children of her late husband,. the late Rev. John Chapman Andrew. These step-grandchildren were in noV way related by blood to, the deceased. Succession duty was assessed by the Commissioner on the residue of. the estate at £4596 Is Bd, being 10 per. cent, of the value of the succession. The appellant objected to th« assessment, on the ground that by section 2 of the Death Duties Act,'l9o9, it was enacted that in that Act, unless a contrary intention appeared, "child includes a. step-child," and that the beneficiaries, being srtep-grand-children or grand step-cnaldien, should have been treated as grandehiTdtren, and' the d«ty assessed at 2 per cant, on the value of the succession. The Commissioner disallowed the objection,, and tho case was submitted to the Court at the requirement of the appellant. The Court wa-s sasked to decide which was the correct assessment.

After hearing short arguments by counsel, his Honour reserved his decision.