TAXATION OF GIFTS
AN IMPORTANT CASE. ARGUMENT BEFORE APPEAL COURT (By Telegraph.—Press Association.) WELLINGTON, Wednesday. The Full Court was occupied with the consideralion of an appeal by the Bank of New Zealand against the assessment of the amount of duty payable by the bank on a gift of £IOO made by the bank to one of its retiring servants.
The bank contended that the gift was free from duly, and the Commissioner that it was liable to a duty of 10 per cent.
The case was of interest as many other similar cases are involved.
At the hearing, Sir .1. Findlay, K.C., and with him Mr G. M. Taylor, appeared for the Bank of New Zealand, and Mr MacGregor, K.G., SolicitorGeneral, for the Commissioner of Stamp Duties. Sir ,1. Findlay, for the Bank of NewZealand, said that the hank was not seeking to evade payment of the taxation. The question for the determination of the Court was as to the meaning of the words "the gift," in Section 50 of Ihe Death Duties Amendment Act, 1020. Thai Section, he said, showed that the legislature was adopting a new scheme of taxing gifts, and that the gift stood on its own, and was quite independent of all other gifts. Mr MacGregor, for the Commissioner of Stamp Duties, said that it w.s quite true that on its face the amor uient of the Statute of 1020 did appear to tax only single gifts over £2OOO in amount, but he contended that, read in conjunction with prior Acts, it was clear that all gifts made within the 12 months must be taken into account, and if twj total value, as in these cases, exceeded £IOOO, then a gift of even less than £IOOO was liable to taxation, at the rate provided in the Act. It was indicated by Mr MacGregor that if (be Court's decision was in favour of the appellant, amending legislation would be necessary. The Court reserved its decision.
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Bibliographic details
Waikato Times, Volume 94, Issue 14767, 5 October 1921, Page 5
Word Count
328TAXATION OF GIFTS Waikato Times, Volume 94, Issue 14767, 5 October 1921, Page 5
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