CO129-530-8 Estate Duty Ordinance- 1931- Bill 27-2-1931 - 15-12-1931 — Page 63

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(b) The penalty under the present section 18 for dealing with property of the deceased not con- tained in the above Schedule is only $500. The new section 18 makes the penalty $1,000 or three times the single rate duty payable upon the estate dealt with, at the election of the Commis- sioner. The person in question will, however, be relieved from liability if he can show any lawful authority or reasonable excuse.

(c) A proviso secures that the disclosure of a trust in the schedule of property shall not constitute notice against a purchaser or mortgagee for value.

32. Section 12 of this Ordinance repeals section 19 of the princ pal Ordinance and substitutes a new section 19 which differs from the old section 19 in the following points :-

(a) The new section 19 deals separately with the two distinct cases of intermeddling by a person who is entitled to apply for administration and that of intermeddling by a person who is not entitled to apply for administration. In the case of a person who is not entitled to apply for admin- istration the liability to penalty arises immedi- ately upon intermeddling. In the case of a person who is entitled to apply for administration the liability for penalty arises in two cases, i.e., (1) when the person in question intermeddles within six months after the death and also fails within that period to deliver accounts to the Commissioner, and (2) when the person in ques- tion intermeddles after six mouths after the death without having within that period furnished accounts to the Commissioner.

(b) It is made clear by reference to the applicable Schedule that the penalty of three times the amount of the duty is to be at three times the single rate of duty and that penalty aud duty together shall not exceed four times that rate.

(c) In dealing with the case of persous entitled to apply for administration the two classes are dis- tinguished of (1) the executor appointed by the will and (2) the person entitled in priority to the administration.

(d) Sub-section (2) of the present section 19 which allows intermeddling for the purpose of the maintenance of the family of the deceased pro- vided that the Commissioner has been notified of the death, opens the door to evasion. This sub-section is replaced by the new sub-section (4) which gives the Commissioner power to allow intermeddling for the purpose in question or for the purpose of the burial of the deceased and also for the purpose of preparing accounts. (e) The

new sub-section (5) provides that the recovery of any penalties provided by this section shall be without prejudice to the recovery of the estate duty.

(f) The ne y sub-section (6) provides that no account is to be deemed to have been delivered until the apparent duty has been paid, unless the Com- nissioner has allowed postponement of payment. (g) The present section 19 (3) disappears because the question of recovery of penalties is dealt with generally in the new section 10 (1).

(h) The present section 19 (4) is omitted because the whole point of the section is to prevent inter- meddling without furnishing accounts to the Commissioner, and the question of obtaining probate or administration is irrelevant. The case of persons who are entitled to administer without furnishing accounts is sufficiently dealt with by

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