CLAIM FOR GIFT DUTY.

New Zealand Herald, Volume LIX, Issue 18021, 21 February 1922, Page 6

CLAIM FOR GIFT DUTY.

LEGAL POINT RAISED.

QUESTION OF REGISTRATION Lb? telegraph.—own corresponds. ] INVERCARGILL. Monday. At the Supreme Court to-day the Commissioner of Stamps proceeded against William Halliday, claiming £90, assessment of gift duty. It appeared that in 1917 the defendant transferred to three sons a property under the Land Transfer Act, a balance of purchase money of £2000 remaining on mortgage in the father's name. On May 6, 1919, the defendant executed a memorandum of reduction of.debt for £900, following this with another of the same amount within a year, as far as registration was concerned, of the first gift, and, so the commissioner contended, laying himself open to payment of gift duty. Defendant refused to pay, on the ground that there had been more than a year between the gifts, irrespective of registration. Counsel for the commissioner'said the question for the Court to determine was. whether the gifts were made at the date of the reductions of debt, or at the date of registration. He submitted that the gift did not take place until it was registered. Mr. Haggitt, for the defendant, contended that registration made the gifts immovable. If he had handed over cheques or gold the position would not have been altered. He submitted that the gifts occurred, when the contract! were first entered into, and that more than a year having elapsed between them they were not liable for duty. Mr. Justice Sim reserved his decision.