1959-HKRS29-8-26_Part01 — Page 17

Geo, & and

| Ellz. 2.

c. 33, s. 72.

Prevention

of double

cury.

6, c. 23.

30

those shares or debentures or by virtue of a power's having been exercisable by him or with his consent in relation to those shares or debentures, then-

(a) if the value of the said consideration or the aggregate value of the shares or debeatures ascertained as if they passed on the death, which- ever is the greater, is equal to or greater than the proportion of the value of the company's assets that corresponds to the benefits that so accrued to him, or if the Commissioner is satisfied that the said proportion would not, if fully uscertained. be found to be substantially in excess of that value, duty on the said proportion shall not be payable:

(b) in any other case, the amount on which duty is to be charged in respect of the said proportion shall he reduced by the amount of the value of the said consideration or of the said aggregato value whichever is the greater :

Provided that

(i) if estate duty on the death is payable upon such shares or debentures on their value or any part thereof, or would be so payable but for an exemp- tion from cstate duty, that value, aggregated if necessary, shall be taken into account as aforesaid, and in such a case references in this subsection to the value of the consideration shall not apply; and

(ii) in assessing the value of such shares or debentures for the purposes of this subsection if they have since the deceased disposed of them, been sub- stantially increased in value by reason of a transfer of property to any company by any person, or by reason of the extinguishment of, or any alteration of the rights attaching to, shares in or debentures of any company, their principal value shall be reduced to such an extent as in the opinion of the Commissioner is necessary to offset the increase attributable to the transfer, extinguishment or alteration.

(4) Where the following conditions are satisfied, that

is to say, that any benefits accrued to the deceased from

7 & 8 Gea, the company by virtue of any interest that he at any time had in shares or in debentures of the company, or by virtue of a power's having at any time been exercisable

8. 38.

Effect of Glamp- tions from duty.

1 & 8 Geo.

2.23.

*. 38.

31

by him or with his consent in relation to shares in or debentures of the company, and apart from this subsection estate duty would be payable on the death both on the value of those shares or debentures by virtue of any provi- sion of this Ordinance other than section 32 and on the proportion of the value of the company's assets that cor- responds to the benefits that se accrued to him by virtue of that section, then-

() if the value of the shares or debentures is equal to. or greater than, the said proportion, or if the Commissioner is satisfied that the said proportion would not, it fully ascertained, be found to be substantially in excess of the value of the shares or debentures, duty on the said proportion shall not be payable;

(b) in any other case, the amount on which duty is to be charged in respect of the said proportion shall be reduced by the amount of the value of the shares or debentures.

...

(5) Where the conditions set out in subsection (4) would be satisfied but for the fact that, by reason of an exemption from estate duty, not being an exemption on the ground that the deceased or other person having an interest in the shares or debentures ceasing on the death of the deceased had only an interest as the holder of an office, that duty is not payable on the value of the shares or debentures, paragraphs (a) and (b) of that subsection shall apply as if that exemption did not operate and as if the duty had been payable on the value of the shares and debentures accordingly:

Provided that where-

(a) the exemption in question depends on a payment of any duty on an earlier death, or does not depend on such a payment but depends wholly or partly on any dispositions having been made: and

(b) since the date of that death or disposition, as the case may be, the shares or debentures have been substantially increased in value by reason of a transfer of property to any company by any person or by reason of the extinguishment of, or any alteration of the rights attaching to, shares in or debentures of any company.