1964_ESTATE_DUTY_ORDINANCE — Page 54

1983 Ed.]

Estate Duty

[CAP. 111

(4) A person accountable for any duty by virtue of this section shall, for the purpose of raising and paying the duty, have all the powers conferred on accountable parties by this Ordinance.

(5) On a winding-up of the company section 265(1) of the Companies Ordinance (which determines what debts shall have priority over other debts in a winding-up) shall have effect as if there were included in paragraph (a) of that subsection a reference to any duty payable in respect of assets of the company passing on a death by virtue of section 35 of this Ordinance, and section 79 of the Companies Ordinance shall have effect accordingly.

(6) The duty payable on the death of the deceased by virtue of section 35 shall be a first charge by way of floating security on the assets which the company had at the death or has at any time thereafter, and any part of the duty for which by virtue of subsection (1)(c) any person is accountable in respect of any distributed assets shall be a first charge also on those assets:

Provided that nothing in this subsection shall operate to make any property chargeable as against a bona fide purchaser thereof for valuable consideration without notice.

(7) Where any duty has been--

(a) paid by a person accountable therefor by virtue only of

subsection (1)(c); or

(b) raised by virtue of subsection (6) out of any distributed

assets charged therewith,

that person, or, as the case may be, the person who was entitled to those assets subject to the charge, may, without prejudice to any right of contribution or indemnity which he may have apart from this subsection, recover the amount of duty so paid or raised as aforesaid from any person who is accountable therefor otherwise than by virtue of subsection (1)(c).

(8) No part of the duty paid by the company shall be recover- able by it from any person on the ground only that he is entitled to any interest in, or to any sum charged on, the assets which the company had at the death of the deceased.

(9) The following provisions shall not have effect in relation to the duty payable by virtue of section 35, that is to say--

(a) so much of section 12(2) as relates to payment of estate duty on all property of which the deceased was competent to dispose at his death;

(b) so much of section 14(6) as relates to the accountability of the executor of the deceased in respect of all property of which the deceased was competent to dispose at his death, and subsection (7) of that section,

and section 18(1) shall have effect in relation to the estate as if the property passing by virtue of section 35 had been property passing to the executor as such.

powers of persons accountable:

priority of estate duty on winding-up: (Cap. 32)

befind

charge on assets of company:

53

rights of person paying duty;

1

duty not recoverable;

accounting and charging.

( Added, 1 of 1959, s. 10)