CLAIM FOR STAMP DUTIES

Wanganui Chronicle, Volume 86, Issue 55, 6 March 1942, Page 3

CLAIM FOR STAMP DUTIES

MAN'S GIFT 10 WIFE i (l-’.AJ Auckland, March 5. i A claim by the Commissioner oi 'Stamp Duties for £1612 duly and £BO6 penal duty from the trustees and executors in the estate of the late Fredericks Potter was heard before Mr. Justice Callan in the Supreme Court to-day. Mr. V. R. Mededith, for the Crow n, said the action had been brought because there were residuary beneficiaries, the Whangarei and Auckland Hospital Boards, and it was made subject to the decision by the Court. He added that Potter was a wealthy man Aho gave largely to charities. The ; claim was made on li\ e | alleged to be gilts to his wife. They | \ere two lots of £5OOO paid to the wile iiii June 1922. £lOO2 in Feoruary 192.”; 14000 in May 1923, and £2250 in December 1924. These sums were ’paid to his wife and were secured at jthe time by promissory notes payable !on demand. I The promissory notes became I statute-barred on the expiry of six j y ears. Potter died in March 1941 and the estate was valued at £11,690, oi i which only £5OO was left to the widow. I The Crown claimed that as £17,250 | had been given to the widow previously it was subject to gift duty and that the promissory notes were a cloak for evading the gill duty. Leonard G. Tuck, Assistant Commissioner of Stamps, said that allowing for the payment of the amounts claimed Ihe official balance of the estate was £9334. ’ After witness had been crossexamined, Mr. W. S. Spence, for the executors, said he could see no escape ! from payment of the gift duty. Fie 'felt I hat the money had been paid as a gift, but also that it had not been jshown that Potter knew; he was under lan obligaion to tile a statement and I make the payment of gift duty. Con- ! sequently he contested the claim for I penal duty. ; Decision was reserved.