191790-1932-Supplementary-Estate-Duty — Page 7

Allowauce

for debts

and funeral

expenses.

57 & 58 Vict. c. 30 s.

7 (1).

Limitation in debts deductible from value of estate. 10 Edw. 7, c. 8, s. 57.

Value of property.

57 & 58 Viet e. 30 s,

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

156

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

(a) for debts incurred by the deceased and in- cumbrances created by a disposition made by the deceased, unless such debts or incumbrances were incurred or created bond 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

(e) more than ouce 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.

(2) Where a debt or incumbrance has been incurred or created in whole or in part for the purpose of or in consideration for the purchase or acquisition or extinction, whether by operation of law or otherwise. of any interest in expectancy in any property passing or deemed to pass on the death of a deccased person, and any person whose interest in expectancy is so purebased, 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.

(8) 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 be estimated to be the price which, in the opinion of the Commissioner, such property would fetch if sold in the open market at the time of the death of the deceased,