1983 Ed.]
Estate Duty
[CAP. 111
49
by the amount of the value of the said consideration or of the said aggregate 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 exemption from estate duty, that value, aggregated if necessary, shall be taken into account as aforesaid, and in such a case references in this sub-section 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 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, 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 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 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 provision of this Ordinance other than section 35 and on the proportion of the value of the company's assets that corresponds to the benefits that so accrued to him by virtue of that section, then-
(a) 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, if 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, nor being, in the case of a person dying on or after the commencement of the Estate Duty (Amendment) (No. 2) Ordinance 1979, an exemption conferred by section 10(b), that duty is not
prevention of double duty:
1944 c. 23. 38.
effect of exemptions from duty: 1944 c. 23. s. 38.
Page 50
Page 51
1983 Ed.]
Estate Duty
[CAP. 111
49
by the amount of the value of the said consideration or of the said aggregate 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 exemption from estate duty, that value, aggregated if necessary, shall be taken into account as aforesaid, and in such a case references in this sub- section 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 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, their principal value shall be reduced to such an extent as in the opinion of the Commis- sioner 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 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 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 provision of this Ordinance other than section 35 and on the proportion of the value of the company's assets that corresponds to the benefits that so accrued to him by virtue of that section, then-
(a) 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, if fully ascer- tained, 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 repect 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, nor being, in the case of a person dying on or after the commencement of the Estate Duty (Amendment) (No. 2) Ordinance 1979, an exemption conferred by section 10(b), that duty is not
prevention of double duty:
1944 c. 23. 38.
effect of exemptions from duty: 1944 c. 23. s. 38.
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