SOLDIER’S ESTATE PAYMENT OF INTEREST

Wanganui Chronicle, 31 January 1947, Page 5

SOLDIER’S ESTATE PAYMENT OF INTEREST

ASSESSMENT CHALLENGED New Plymouth, Jan. 29, Death duties on the estate of a New Zealand soldier who was killed on active service at Singapore on February 11, 1942, but who was not officially presumed dead until March, 1946, amounted to £242 13s 2d. Payment of interest on that sum at 5 per cent, is being contested by a firm of South Taranaki solicitors, but so far the Commissioner of Stamp Duties has granted only nine months’ relief and a further request for reconsideration has not been answered.

After the capture of Singapore Japanese control made it impossible to establish the position of individual men, dr to ascertain whether they were dead or living. It was not until March, 1946, that the executor received advice that the testator was presumed dead. The executor did not receive the will from the authorities in Australia, from where the testator enlisted, until June, 1946.

In response to an application by the executor lor remission of interest, the Commissioner postponed the date for interest to February 11, 1943, one year after the death, which meant that only nine months’ relief from interest was granted and even that postponement was subject to final Government approval. On July 19, 1946, the executor submited death duty accounts and applied for exemption from the payment of interest on death duties. He suggested that interest should be limited to 5 per cent, on the death duties unpaid after three months, calculated from the date of the receipt by the executor of the will.

After the executor received the will probate was promptly applied for and was granted on July 19, 1946. The estate has paid interest as assessed at 5 per cent, on £242 13s 2d from February 11, 1943, to October 22, 1946, amounting to £44 16s 3d. In view of the fact that it was not until June, 1946, that the contents of the will were known in New Zealand, th,? executor claims a refund of the interest paid.