DEATH DUTIES.

Taranaki Daily News, 12 November 1921, Page 3

DEATH DUTIES.

CLOSING A LOOP-HOLE. (From Our Parliamentary Reporter.) Wellington, Nov. 10. The Reaths Duties Bill introduced yesterday contains, as stated by the Prime ?4inister, provisions to close the loophole discovered by’ the Court in the legislation regarding death duties. The difficulty was occasioned, as the Court pointed out, by reading together the clause in the original Act, and the variations contained in the amendments of 1911, 1915 and 1920. The new measure brings these together and reconciles them.

By the new Bill .it is provided that I where the value of a gift, together with thn value of all other gifts made at the same time of within twelve months subsequently or previously (whether before or after the passing of the Bill), by the same donoi- to the same or any other beneficiary, otherwise than by way of charitable trust: — (a) Does not exceed one thousand pounds, no gift duty shall be payable on such gift. (b) Exceeds one thousand pounds but does not exceed five thousand pounds, the ra£b of gift duty shall be five per centk of the value of the gift.

(c) Is more than five thousand but does not exceed ten thousand pounds, the rate shall be seven and a half per eent. of the value.

(d) Exceeds ten. thousand pounds the duty shall be ten per cent, of the value. The duty is-i:o be payable if the interests of thq beneficiaries are future interests. Where subsequent gifts have ! made a,, gift previously free subject .to duty, at have resulted in the rate payable being removed to a higher scale, the da/be at which it 'became so liable is the one to be taken into account for calculating all times, or, an the wording of the clause puts it, “the references in this Act to the date of the making of the gift shall, so far as may be necessary in their application to any gift so becoming dutiable, or becoming dutiable at a higher rate, be construed as references to the date on which the gift became dutiable, or has become subject to the higher rate of gift duty.” The final sub-section of the consolidate ing clause stipulates that: “This section shall apply with respect to gifts made before the passing - of this Act in the same manner and to the same extent as if it had been incorporated in and formed part of the Death Duties .Amendment Act, 1920, and had been, passed in lieu of Section 5 of that Act.”