IN TIME OF SLUMP.

Star (Christchurch), Volume XLIV, Issue 373, 15 March 1932, Page 5

IN TIME OF SLUMP.

Land Valuations Must be Lower. IMPORTANT JUDGMENT. (Special to the “ Star.”) WELLINGTON, March 15. i An important case in connection with the valuation of farm lands for the purpose of assessment of estate duty in a deceased person’s estate was heard in the Eketahuna Magistrate’s Court. It took the form of an appeal to the Magistrate, Mr Hewitt, S.M., against the \ aluer-General’s valuation of the late Mr E. R. Saunders’s farm property for estate duty purposes. Ihe main point for argument was whether the valuation of farm lands lor the purpose of estate duty should be reduced in conformity with the reduction in the prices of produce due to the present depression. Lengthy evidence was given by district sheep farmers as to the estimated receipts and expenditure of the property under the present conditions, and by land agents as to the possibility of a sale of a property such as that in question under the present conditions. The appeal was allowed, the Court holding that in fixing valuations such as this the conditions at the time of the death must be taken into account, ihe valuation was materially reduced The Court also held that in arriving at land values by way of capitalising income, the owner should be allowed 8 per cent per annum on his farming ventures.