FARM TRANSFERS

Evening Post, Volume CXVII, Issue 146, 22 June 1934, Page 6

FARM TRANSFERS

CONVEYANCE DUTY

Legal argument was heard by the Court of Appeal yesterday on the question of whether the Commissioner of Stamp Duties is orititlcd-to assess conveyance duty on transfers in respect to two farms bequeathed to two brothers, under certain conditions, by their father. The Court reserved its decision. - ' c

Under the will of Otto Henry Julius Schultz, late of Eltham," farms wore left to his sons ITrederiek and" Albert. Frederick had to take over ''.'a-.first- mortgage to the Bank of New South-Wales and in addition give a second mortgage to the trustees under the will for the difference between the bank' mortgage and £15 per acre of the-farm. The condition attaching to Albert's farm was that he was required to execute in favour of tho trustees a mortgage equal to £15 per acre. The conditions in each ease Were complied with' and the farms were transferred. The Stamp Duties Department .assessed duty on the transfers at £43.9s and £58 6s respectively as being instruments of conveyance on sale; The two sons objected, claiming that, the transfers were exempt from conveyance duly under section 81(d) of the Stamp Duties Act 1923, as being conveyances by a trustee to a devisee pursuant to a will. The matter came before Mr. Justice Blair at Palmerston North last month on cases stated by the Commissioner of Stamp Duties: His Honour held that both cases came within tho exemption clause, and that the sons therefore were not liable to conveyance duty. It was on this decision that^the opinion" of the Court o| Appeal was sought. Mr. C. H. Taylor, Crown Solicitor, appeared for the Commissionpr of Stamp Duties, and Mr. D. C. Cullinnnc for the respondents.

On tho Bench were the Chief .Tustion (Sir Michael Myers), Mr. Justice, Rood. Mr. Justice Ostler, and Mr. Justico Johnston.