1964_ESTATE_DUTY_ORDINANCE — Page 55

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CAP. 111]

Estate Duty

[1983 Ed.

Value of shares and debentures of controlled companies;

1940 c. 29. s. 55 and 1954 c. 44. s. 29(1)(a).

1954 c. 44. s. 30(3).

method of estimation; 1940 c. 29, s. 55(2).

for

person deemed to have control of company purposes of valuation.

1940 c. 29. s. 55(3)

and 1954 c. 44. s. 29(1)(A).

44. (1) Where for the purposes of estate duty there pass shares in or debentures of a company to which by virtue of section 34 this section applies, then if the deceased had the control of the company at any time during the 3 years ending with his death, the principal value of the shares or debentures, in lieu of being estimated in accordance with the provisions of section 13(5)(a), shall be estimated by reference to the net value of the assets of the company in accordance with the provisions of subsection (2) of this section:

Provided that any liability of the company arising, or which may arise, after the death for corporation profits tax shall be taken into account as if it were an actual but contingent liability at the date of the death, in so far as the liability or its amount is referable to profits accruing before the death, whether then realized or not; and in estimating any such liability for taxation charged on profits arising after the death the Commissioner shall take into account the extent, if any, to which the last-mentioned profits are likely to be insufficient to meet the liability.

(2) The principal value of the shares and debentures mentioned in subsection (1) shall be estimated as follows-

(a) the net value of the assets of the company shall be taken to be the principal value thereof estimated in accordance with the said section 13(5)(a), less the like allowance for liabilities of the company as is provided by section 39(1) in relation to the assets of a company passing on a death by virtue of section 35, but subject to the modification that allowance shall be made for such a liability as is mentioned in section 39(1)(b) unless it also falls within paragraph (a) thereof;

(b) the aggregate value of all the shares and debentures of the company issued and outstanding at the death of the deceased shall be taken to be the same as the net value of the assets of the company;

(c) in a case in which there are both shares in and debentures of the company issued and outstanding at the death, or different classes of either, the net value of the assets of the company shall be apportioned between them with due regard to the rights attaching thereto respectively; and (d) the value of any share, or of any debenture, or of a share or debenture of any class, shall be a rateable proportion, ascertained by reference to nominal amount, of the net value of the assets of the company as determined under paragraph (a), or, in the case mentioned in paragraph (c), of the part thereof apportioned under that paragraph to the shares of the company, or to its debentures, or to that class thereof, as the case may be.

(3) For the purposes of this section, a person shall be deemed— (a) to have control of a company at any time if he then had the control of powers of voting on all questions, or on any particular question, affecting the company as a whole,

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