£17,000 TO WIFE

New Zealand Herald, Volume 79, Issue 24216, 6 March 1942, Page 2

£17,000 TO WIFE

GIFT DUTY CLAIMED ACTION AGAINST ESTATE LARGE SUMS TO CHARITIES Gifts of over £17,000 made by a man to his wife some 20 years ago were the subject of a claim brought by the Commissioner of Stamp Duties before Mr. Justice Callan yesterday. The defendants were the trustees and executors of the estate of the late Frederick Seymour Potter (Mr. W. S. Spence), whose death occurred on March 29 last, and Mr. G. S. R. Meredith appeared for the commissioner. The claim was for £1612 gift duty alleged to be due on gifts made - by Mr. Potter to his wife, Mary Elizabeth Potter, and also for £BO6 penal gift duties. Mr. Meredith said deceased's estate had been finally valued at £11,684. His will was dated October 9, 1939, and ho left most of bis estate to the Auckland and Whangarei Hospital Boards. Only £SOO was left to the widow. Deceased had previously made the following payments to his wife secured by promissory notes. Two sums of £SOOO in June, 1922, £IOO2 in February, 1923, £4OOO in May, 1923, and £2250 in December, 1924, making a total of £17,252. These promissory notes became statute barred after six years. 'No gift schedule had been filed in connection with these transactions, and no gift duty had ever been paid. The assistai.i Commissioner of Stamp Duties at Auckland, Leonard G. Tuck, described interviews he had had with deceased over duties payable on his estate. Witness told him bequests would be exempt'from death duties if they were charitable gifts Deceased told witness he had given £50,000 to an orphanage at Papakura, and this had been exempt from duty. No record of this sum of £17,000 appeared in deceased's books among his assets. Mr. Spence said he could not a see a way of escape from payment of the gift duty, but it had been by no means shown that deceased deliberately intended to evade duty that he knew to be payable. The penal duty had, therefore, not been incurred. His Honor said he would take time to consider his judgment.