44
45
No. 1. Account
for the Com.
missioner
4th April,
1935.
4
3. The said Michael Howard Turner was appointed a Trustee of the said Will and Codicils on the 11th day of March 1927.
4. By Clause five of the said Will of the above deceased bequeathed an (Continued) annuity of £10,000 sterling clear of all death duties and income tax to his
widow the said Lady Maria Christine Chater.
5. Estate Duty was paid on the whole of the above deceased's Estate when the aforesaid Probate was obtained.
6. No fund was set aside to meet the said annuity but the same was paid out of the general income as and when the same became due.
7. The said Sir William Edward Leonard Shenton and the said Michael 10 Howard Turner are uncertain whether or not a claim for Estate Duty has arisen by reason of the cesser of the said annuity of £10,000 per annum on the date of the death of the said Lady Maria Christine Chater.
8. In the event of a claim for Estate Duty having arisen then if such claim attaches by virtue of Section 9 (b) of Ordinance No. 3 of 1932 the capital sum necessary to produce £10,000 per annum calculated at the rate of Eight per cent per annum (being the Court rate of interest) amounts to £125,000. £125,000 converted into Hongkong Dollars at the rate of 1/11 being the rate prevailing on the 11th day of March 1935 amounts to $1,263,157.90.
9. The said Sir William Edward Leonard Shenton and Michael Howard 20 Turner contend that by virtue of Section 25 of Ordinance No. 3 of 1932 no Estate Duty is now payable.
10. The said Sir William Edward Leonard Shenton and Michael Howard Turner also contend that if Estate Duty is payable by reason of the circums- tances which have happened then such Estate Duty should be calculated in accordance with the Third Schedule of Ordinance No. 3 of 1932 but having regard to the fact that Section 13 (5) of Ordinance No. 16 of 1915 and the explanatory clause of the Third Schedule of Ordinance No. 16 of 1915 has not been incorporated in Ordinance No. 3 of 1932 such duty is impossible to calculate and is therefore not payable.
5
No. 2. Letter from Respondent to Appellants Solicitors.
ESTATE DUTY OFFICE,
III
E.D. No. 131
Gentlemen,
/1935.
THE TREASURY,
Hongkong, 20th May, 1935.
Re: SIR C. P. CHATER, DECEASED. & LADY M. C. CHATER, DECEASED.
With reference to the claim by this Department to Estate Duty by reason of the cesser of the annuity, I have the honour to inform you that I am advised 10 by Counsel that your contentions that duty is not payable by virtue of Section 25, or that, if payable, it should be calculated in accordance with the Third Schedule of Ordinance 3 of 1932 cannot be accepted. Duty is accordingly claimed under Section 5 (1) (b), calculation to be made in accordance with the method described in Section 9 (6) (b). I accept your figure $1,263,157.90 as the value of the benefit accruing or arising from the cesser of the interest and attach an assessment memorandum showing the duty payable. You will note that the rate is 12% as the result of aggregation, as I hold that for the purpose of ascertain- ing the rate at which estate duty is payable on each subject of property the principal values of the different subjects of property must be added together 20 (vide Hanson Death Duties 8th Edition pages 11 & 102).
I have the honour to be,
Gentlemen,
Your obedient servant,
Sd/ J. S. MACLAREN
p. Estate Duty Commissioner.
Messrs. Deacons.
30
No. 3. Assessment Memorandum.
No. 2. Letter from Respondent to Appellante Solicitors 20th May
1935.
SWORN at the Supreme Court of Hongkong, this 4th day of April 1935.
Sd/ W. E. L. SHENTON.
Before me,
་ ་
M. H. TURNER.
Sd/ T. M. HAZLERIGG,
A Commissioner for Oaths.
30 E.D. 131
II
/1935.
Gentlemen,
ESTATE DUTY OFFICE, TREASURY,
Hongkong, 20th May, 1935.
ASSESSMENT MEMORANDUM.
Re: LADY MARIA C. CHATER. DECEASED.
I have to notify you that the Commissioner has now assessed the value of the above estate and will, on payment of the sum set out below, deliver to you
No. 3. Assessment Memoran-
dum 20th May
1935.
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