187168-1932-Ordinances-passed-and-assented-to--Estate-Duty-No-3-of-1932-Po-Leung-Kuk-Incorporation-Amendment-No-4-of-1932-Chinese-Temples-Amendment-No-5-of-1932 — Page 8

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THE HONG KONG GOVERNMENT GAZETTE, FEBRUARY 26, 1932.

expenses.

9.-(1) In determining the value of an estate for Allowance the purpose of estate duty, allowance shall be made for deuts for reasonable funeral expenses incurred in the Colony and funeral not exceeding one thousand dollars or two and a half 57 & 58 Viet. per cent, of the ascertained value of the estate, which- c. 30 s. ever is the smaller, and for debts and incumbrances, 7 (1). but an allowance shall not be made-

or

(a) for debts incurred by the deceased and in- cumbrances created by a disposition made by the deceased, unless such debts incumbrances were incurred or created bonâ fide for full consideration for money or money's worth wholly for the deceased's own use and benefit and take effect out of his interest; nor

(b) for any debt in respect whereof there is a right to reimbursement from any other estate or person unless such reimbursement cannot be obtained; nor

(c) more than once for the same debt or in- cumbrance charged upon different portions of the estate;

and any debt or incumbrance for which an allowance is made shall be deducted from the value of the property liable thereto.

from value

(2) Where a debt or incumbrance has been incurred Limitation or created in whole or in part for the purpose of or en debts in consideration for the purchase or acquisition or deductible extinction, whether by operation of law or otherwise, of estate. of any interest in expectancy in any property passing 10 Edw. 7, or deemed to pass on the death of a deccased person, c. 8, s. 57. and any person whose interest in expectancy is so purchased, acquired, or extinguished becomes (under any disposition made by, or through devolution of law from, or under the intestacy of, the deceased) entitled to any interest in that property, then in determining the value of the estate of the deceased for the purpose of estate duty no allowance shall be made in respect of such debt or incumbrance, and any property charged with any such debt or incumbrance shall be deemed to pass freed from that debt or incumbrance:

Provided that:-

(a) if part only of such debt or incumbrance was incurred or created for such purpose or as such consideration as aforesaid, this pro- vision shall apply to that part of such debt or incumbrance only; and

(b) if a person whose interest in expectancy in the property so purchased, acquired, or ex- tinguished becomes entitled to an interest in part only of that property, this provision shall apply only to such part of the debt or incumbrance as bears the same proportion to the whole debt or incumbrance as the value of the part of the property to an interest in which he becomes entitled bears to the value of the whole of that property.

(3) No allowance shall be made for debts due from the deceased, other than debts contracted in the Colony to persons ordinarily resident therein. unless charged on property situate within the Colony.

(4) (a) The principal value of any property shall Value of be estimated to be the price which, in the opinion of property. the Commissioner, such property would fetch if sold 57 58 Viet. in the open market at the time of the death of the c. 30 s.

deceased,

7 (5). 10 Edw. 7, c. 8, s. 60.

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