In the case of every person who dies after the commencement of this Act, whether in New Zealand or elsewhere, and wherever the deceased was domiciled, there shall be payable to the Crown on the final balance of the estate of the deceased, as determined in accordance with this Act, a duty (herein referred to as estate duty) at the rate and in accordance with the provisions prescribed by this Act.

Estate duty shall be charged and assessed upon the amount of the final balance of the estate, in accordance with the graduated scale of rates set out in the First Schedule to this Act.

In calculating for the purposes of this Act the final balance of the estate of a deceased person, his estate shall be deemed, subject to the provisions of this section, to include and consist of the following classes of property (hereinafter referred to as his dutiable estate) namely:

For the purposes of paragraph (g) of subsection one of this section the following provisions shall apply:

For the purposes of paragraph (j) of subsection one of this section the following provisions shall apply:

The dutiable estate of a deceased serviceman shall not include any pay that by reason of the deceased’s service as a serviceman is payable to the estate of the deceased or to any other person for any period after the death of the deceased.

The final balance of the estate of the deceased shall be calculated as being the total value of his dutiable estate after making such allowances as are hereinafter authorized in respect of the debts of the deceased and in respect of other charges.

All property included in the dutiable estate shall be valued as at the date of the death of the deceased:

Provided that, where in section five of this Act a reference is made to the local situation of any such property as at any other date, the value of that property shall be determined as at that other date.

The amount of the final balance of any estate shall be deemed and taken to be its amount in complete pounds.

Where the deceased was domiciled in New Zealand at the date by reference to which the local situation of any personal property is to be determined, that personal property shall be deemed for the purposes of this Act to be situated in New Zealand at that date.

Subject to section seven of this Act, the local situation of property shall be determined for the purposes of this Part of this Act in manner set forth in this section, in respect of the classes of property hereinafter in this section referred to:

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In calculating the final balance of the estate of the deceased, allowance shall, except as otherwise provided by this Act, be made for all debts owing by the deceased at his death.

No such allowance shall be made—

If any debt for which by reason of the provisions of paragraph (d) of subsection two of this section an allowance has not been made becomes at any time within three years after the death of the deceased actually payable or, in the opinion of the Commissioner, capable of estimation, an allowance shall be made therefor, and a refund of any estate duty paid in excess under this Act shall be made to the person entitled thereto, but no action for the recovery of any such refund shall be commenced except within three years after the payment of the duty so paid in excess.

In calculating the final balance of the estate of the deceased, no allowance shall be made in respect of the expenses of the administration of the estate; but an allowance shall be made under section nine of this Act for the reasonable expenses of the funeral of the deceased, in the same manner and to the same extent as if those expenses constituted a debt of the deceased.

An allowance shall be made under section nine of this Act for any rates of any kind owing by the deceased at his death to any local authority (whether made or levied before or after the date of death) if they are owing for a period before the date of death, but not otherwise.

For the purposes of this section all rates shall be deemed to accrue and become owing from day to day throughout the period for which they are made or levied, and shall, where necessary, be apportioned accordingly.

An allowance shall be made under section nine of this Act for any income tax or social security charge payable by the administrator of the estate of the deceased in respect of income of the deceased (however arising or derived) for any period before the date of his death, in the same manner and to the same extent as if that income tax or social security charge constituted a debt of the deceased.

The allowance so to be made for debts shall extend to all debts whether incurred or payable in New Zealand or elsewhere, save that where there are any foreign assets the total debts of the deceased in respect of which an allowance would otherwise be made shall be apportioned between those foreign assets and the dutiable estate of the deceased in proportion to their respective values, and an allowance shall be made only in respect of the proportion so apportioned to the dutiable estate.

The apportionment provided for in this section shall be irrespective of the fact that the debts of the deceased, or any of them, are charged by mortgage or otherwise upon any part of the dutiable estate or foreign assets, and the apportionment shall in any such case be made in the same manner as if no such charge existed.

No estate duty shall be payable on any estate the final balance of which does not exceed one thousand pounds.

For the purposes of estate duty every contingency affecting the interest of the deceased in any property forming part of his dutiable estate shall be deemed to have determined in the manner in which, in the opinion of the Commissioner, it probably will determine, and the interest shall be valued and estate duty assessed and paid accordingly.

An appeal to the Supreme Court by way of case stated shall lie from any decision of the Commissioner under subsection one of this section in the same manner as if that decision were the determination of a question of law, and all the provisions hereinafter contained as to appeals to the Supreme Court shall apply accordingly. If no such appeal is commenced and duly prosecuted, the decision of the Commissioner shall be final and conclusive.

If in the actual event at any time thereafter the contingency determines in a manner different from that so assumed as the basis of assessment, estate duty shall thereupon be reassessed by the Commissioner on the basis of the actual event, and as of the date of the death of the deceased.

If on that reassessment it appears that too much has been paid by way of estate duty, a refund of the excess, together with interest thereon at the rate of four per cent per annum from the date of payment of the duty, shall be made to the person who would have been entitled to recover the excess of duty had it been paid in error.

If on any such reassessment as aforesaid it appears that too little estate duty has been paid, the deficiency, together with interest thereon at the rate of four per cent per annum as from the date upon which the duty originally paid became due, shall thereupon become due and payable, and shall for all purposes be deemed to be estate duty which has remained upaid in error:

Provided that the administrator shall not be personally liable for any such additional duty by reason of having administered and distributed the estate of the deceased before the determination of the said contingency without retaining assets sufficient to satisfy that duty:

Provided also that the Minister, or the Commissioner acting with the general or special authority of the Minister, may, if he thinks fit, reduce, remit, or refund the interest payable on any deficiency of estate duty under this subsection where he is satisfied that the payment or retention of the interest would create a hardship; but no such refund shall be made unless application therefor is received by the Commissioner within six months after the date of the payment of the interest.

In this Act the term “successor” means, in relation to any deceased person, any person who on the death of the deceased—

In this Act the term “succession” means the interest to which a successor is entitled as such.

Where the deceased has entered into a contract for a benefit to a person who is not a party to the contract, and the contract is enforceable by the administrator of the estate of the deceased, the person for whose benefit the contract was made shall, for the purposes of paragraph (f) of subsection one of this section, be deemed to become beneficially entitled to the benefit, notwithstanding that the contract is not enforceable by him.

For the purposes of paragraph (g) of subsection one of this section the property comprised in any settlement, trust, or disposition of property shall be deemed to include the proceeds of the sale or conversion thereof, and all investments for the time being representing the same, and all property which has in any manner been substituted for the property originally comprised in the settlement, trust, or disposition.

For the purposes of this section—

Where the final balance of the estate of the deceased does not exceed twelve thousand pounds, there shall, in respect of the succession acquired by the wife of the deceased in his dutiable estate, be deducted from the estate duty calculated in accordance with the scale of rates set out in the First Schedule to this Act an amount bearing the same proportion to that duty as the value of that succession bears to the amount of the final balance of the estate:

Provided that, subject to the provisions of subsection four of this section, the amount of the deduction shall where necessary be reduced so as not to exceed the maximum allowance.

Where the final balance of the estate of the deceased does not exceed twelve thousand pounds, there shall, in respect of the succession acquired by each infant child of the deceased in his dutiable estate, be deducted from the estate duty calculated in accordance with the scale of rates set out in the First Schedule to this Act an amount bearing the same proportion to that duty as the value of that succession or the amount of five hundred pounds (whichever is the less) bears to the amount of the final balance of the estate:

Provided that, subject to the provisions of subsection four of this section, the amount of each deduction shall where necessary be reduced so as not to exceed the maximum allowance.

Where more than one deduction requires to be made under the foregoing provisions of this section, the amounts which may be deducted thereunder shall where necessary be reduced proportionately so as to make the aggregate of those amounts equal to the maximum allowance, and only the reduced amounts shall be deducted.

There shall, in respect of the succession acquired by the wife of a deceased serviceman in his dutiable estate, be deducted from the estate duty calculated in accordance with the scale of rates set out in the First Schedule to this Act an amount bearing the same proportion to that duty as the value of that succession or the amount of five thousand pounds (whichever is the less) bears to the amount of the final balance of the estate.

There shall, in respect of the succession acquired by each lineal ancestor or lineal descendant of a deceased serviceman in his dutiable estate, be deducted from the estate duty calculated in accordance with the scale of rates set out in the First Schedule to this Act an amount bearing the same proportion to that duty as the value of that succession or the amount of five thousand pounds (whichever is the less) bears to the amount of the final balance of the estate.

The determination of the Commissioner that any estate is not one to which this section applies shall be final for all purposes.

In the case of the wife or an infant child of the deceased who is entitled to a deduction in accordance with section seventeen of this Act, the deduction allowed by this section shall be in substitution for, and not in addition to, the deduction allowed by that section and shall only be made where it exceeds the deduction allowed by that section.

For the purposes of this section—

Where the Commissioner is satisfied that the dutiable estate of a deceased successor includes any property identified as being or representing property to which the deceased successor has become entitled as a successor to a predecessor, the Commissioner shall reduce the net amount of the estate duty payable in the estate of the deceased successor in respect of that property as follows:

Provided that where the net amount of the estate duty payable in the estate of the deceased successor in respect of that property (before making any reduction under this section) exceeds the net amount of the estate duty payable in the estate of the predecessor in respect of that property or the property that it represents (after making any reduction under this section or section twenty of this Act if applicable), the reduction to be made under this section shall be the appropriate percentage of the last-mentioned amount.

For the purposes of this section, the expression “estate duty”, in relation to the estate of a predecessor who has died before the commencement of this Act, shall include estate duty and succession duty under the Death Duties Act 1921.

For the purposes of this section—

Where the Commissioner is satisfied that the dutiable estate of a deceased successor includes any property identified as being or representing property to which the deceased successor has become entitled as a successor to a predecessor, the Commissioner shall, instead of making a reduction under section nineteen of this Act, reduce the estate duty payable in the estate of the deceased successor by the net amount of the estate duty payable in that estate in respect of that property:

Provided that, where the net amount of the estate duty payable in the estate of the deceased successor in respect of that property (before making any reduction under this section) exceeds the net amount of the estate duty payable in the estate of the predecessor in respect of that property or the property that it represents (after making any reduction under this section or section nineteen of this Act if applicable), the reduction to be made under this section shall be the last-mentioned amount.

For the purposes of this section, the expression “estate duty”, in relation to the estate of a predecessor who has died before the commencement of this Act, shall include estate duty and succession duty under the Death Duties Act 1921.

Where a child or other issue of a testator has died in the lifetime of the testator but, on the death of the testator, becomes entitled as a successor to property forming part of the dutiable estate of the testator by virtue of the provisions of section thirty-three of the Wills Act 1837, that child or other issue shall, for the purposes of sections nineteen and twenty of this Act, be deemed to have died immediately after the testator.

For the purposes of estate duty illegitimate relationship shall be recognized as equivalent to legitimate relationship in all cases in which proof is given to the satisfaction of the Commissioner of the illegitimate relationship of the successor to the deceased.

Subject to the provisions of this Part of this Act, the value of any succession shall be deemed and taken to be the present value thereof at the death of the deceased:

Provided that the value of any succession acquired by way of gift and coming within paragraph (h) of subsection one of section sixteen of this Act shall be deemed and taken to be the present value thereof at the date of that gift.

For the purpose of calculating the value of any succession, no deduction shall be allowed in respect of the expenses of the administration of the estate, or in respect of commission or other remuneration payable to an administrator, or in respect of the amount of estate duty payable under this Act.

The value of any succession shall be deemed and taken to be its value in complete pounds.

For the purpose of calculating the value of any succession section fifteen of this Act shall, with all necessary modifications, apply with respect to every contingency affecting the succession, in the same manner in which that section applies with respect to contingencies affecting the interest of the deceased in any property forming part of his dutiable estate.

For the purpose of calculating the value of any succession no deduction shall be allowed in respect of any mortgage, charge, encumbrance, or liability affecting or incident to the property comprised in the succession, if and so far as the successor is entitled as against any other person or property to any available right of contribution or indemnity in respect of that mortgage, charge, encumbrance, or liability.

If the interest of a successor consists in a pecuniary legacy or other pecuniary claim which may be lawfully paid or satisfied either out of the dutiable estate of the deceased or out of foreign assets, the value of that interest shall be apportioned between the dutiable estate so available to satisfy the same and the foreign assets so available to satisfy the same in proportion to their relative values, and only that part of the interest which is so apportioned to the dutiable estate shall be taken into account in calculating the value of the succession.

The amount of the estate duty payable under this Act shall constitute a debt payable to the Crown out of the estate of the deceased in the same manner as the debts of the deceased, and that duty shall be paid by the administrator accordingly out of all real or personal property vested in him and forming part of the dutiable estate of the deceased, whether that property is available for the payment of the other debts of the deceased or not, and whether the property in respect of which the duty or any part thereof has been assessed is vested in the administrator or not.

For the purpose of paying estate duty the administrator shall have the same power of selling, leasing, or mortgaging any real or personal property vested in him as in the case of a sale, lease, or mortgage for the payment of the debts of the deceased.

Estate duty shall become due and payable on the assessment thereof by the Commissioner, or if not duly so assessed within six months from the death of the deceased, then on the expiration of that period of six months.

If the full amount of estate duty is not paid within three months after notice has been given to the administrator of the assessment thereof by the Commissioner, or within such extended period as the Commissioner thinks fit to allow on the application of the administrator made before the expiration of that period of three months, there shall be added by way of penalty a further sum equal to five per cent of the duty so unpaid, and the additional sum shall be deemed to be estate duty and shall be chargeable and recoverable accordingly.

The Minister, or the Commissioner acting with the general or special authority of the Minister, may, if he thinks fit, on special grounds, reduce, remit, or refund in whole or in part any penalty incurred under this section, but no such refund shall be made unless application therefor is received by the Commissioner within six months after the date of the payment of the penalty.

Interest shall be payable on the amount of all estate duty unpaid within four months after the death of a deceased person and shall be calculated as from the expiration of that period of four months and at the following rates:

Provided that the rate of interest payable as aforesaid on the amount of any estate duty unpaid within fifteen months after his death shall be four per cent per annum if the Commissioner is satisfied that there has been no undue delay on the part of the administrator or other person liable in the payment of the duty and that the assets of the estate and the income earned therefrom are such that payment of interest at the higher rate hereinbefore prescribed would create a hardship.

All interest payable under this section shall be deemed to be estate duty and shall be chargeable and recoverable accordingly.

Interest under this section shall be payable on the amount of any penalty imposed under section twenty-nine of this Act, and shall be calculated as from the date on which the penalty became payable.

The Minister, or the Commissioner acting with the general or special authority of the Minister, may, if he thinks fit, reduce, remit, or refund the interest payable on any unpaid estate duty under this section where he is satisfied that the failure to pay the duty was not due to any default of the administrator or other person liable to pay the duty, and that the assets of the estate and the income earned therefrom are such that the payment or retention of the interest would create a hardship; but no such refund shall be made unless application therefor is received by the Commissioner within six months after the date of the payment of the interest.

The estate of a deceased person shall not be exempt from estate duty by reason merely of the fact that no grant of administration has been, or need be, or can be made in New Zealand in respect of that estate; and in any such case all the provisions of this Act shall, so far as applicable, apply notwithstanding the fact that there is no administrator of the estate.

The estate duty payable under this Act shall constitute, as from the death of the deceased, a charge upon the whole dutiable estate of the deceased and upon all property included in that estate, whether vested in the administrator or not, but no such charge shall affect the title of any purchaser for value (whether before or after the death of the deceased) without actual notice of the existence of the charge.

Any successor or other person whose interest is affected by the realization or enforcement of any such charge shall, except so far as otherwise provided by this Act or by the will of the deceased, have a right of indemnity as against the administrator of the estate to the extent of all assets which are or have been available in the hands of the administrator for the payment of estate duty.

Without excluding the liability of the administrator under the foregoing provisions, the estate duty payable on the dutiable estate of the deceased shall constitute a debt due to the Crown by every successor of the deceased and by the trustee of any such successor:

Provided that each successor and his trustee shall be so liable only for that part of the estate duty payable as, together with the amount of any deduction in respect of his succession under section seventeen or section eighteen of this Act, is equal to the same proportion of the estate duty (before any deduction is made therefrom under those sections) as the value of his succession bears to the aggregate value of all the successions:

Provided also that where the interest of any successor is a future interest, he shall not become so liable for estate duty until his interest becomes an interest in possession.

As between the several successors of the deceased, and without affecting the rights and remedies of the Crown under the foregoing provisions of this Act, the provisions of this section shall be applicable.

Estate duty shall be payable in accordance with the directions of the will of the deceased so far as regards any property which is subject to the dispositions of that will.

Subject to any such directions, estate duty shall, to the extent to which each successor is liable therefor under section thirty-three of this Act, be payable out of the property comprised in the succession of each such successor, whether that property is vested in the administrator or not, or out of any money, investments, or other property for the time being representing that property.

If any estate duty is in the first instance paid by the administrator, or by any successor or the trustee of any successor, otherwise than in accordance with this section, the person by whom duty is so paid may recover the same by action in any Court of competent jurisdiction (together with such interest thereon as the Court thinks just) from the successor or the trustee of the successor out of whose property the duty was payable in accordance with this section:

Provided that where the interest of the last-mentioned successor is a future interest, he shall not become so liable until his interest becomes an interest in possession.

If any estate duty is paid in the first instance otherwise than in accordance with this section, every person whose interest is thereby affected shall have a right of indemnity against the property out of which that duty was payable in accordance with this section.

For the purpose of carrying into effect the provisions of this section the Supreme Court may, on the application of the administrator or of any person interested, make such orders as it deems just with respect to the administration of the dutiable estate of the deceased; and may by any such order impose on any part of that estate, or on any money, investments, or other property for the time being representing the same, a charge in favour of any person who is entitled to any such right of indemnity as aforesaid, and every such charge shall bear such interest (if any) as the Court thinks just.

On the application of the administrator or of any person interested for the enforcement of any such charge the Supreme Court may make such order as it thinks just, either for the sale of the property charged or of any part thereof, or for the appointment of a receiver of the rents, profits, or income thereof.

When any property has been sold under any such order the Supreme Court may make an order vesting the property in the purchaser.

Every such vesting order shall have the same effect as if all persons entitled to the property had been free from all disability, and had duly executed all proper conveyances, transfers, and assignments of the property for such estate or interest as is specified in the order, and the order shall be subject to stamp duty accordingly, and in the case of land which is subject to the Land Transfer Act 1952 the purchaser’s title shall be registered accordingly.

There shall be deducted from the estate duty payable in respect of any property situated out of New Zealand at the death of the deceased the amount of any duty which by reason of his death is payable in respect of that property in the country in which it is situated at his death.

For the purposes of this section the local situation of property shall be determined in the same manner as provided in section eight of this Act, except that the local situation of property shall not be determined for this purpose by reference to the domicile of the deceased.

No such deduction as is provided for in this section shall be made until and unless the duty so payable in another country has been actually paid, and in the meantime the full amount of estate duty shall be assessed and payable; and on payment of the duty in that other country a refund of the amount thereof shall be made in the same manner as in the case of duty paid in excess, but no such refund shall be made unless application therefor, supported by evidence of payment of the duty in the other country, is made in writing within six years after the date of the payment of duty in New Zealand.

For the purposes of this section, and notwithstanding anything hereinbefore contained, the local situation in the United Kingdom of any property shall be determined in accordance with the law of England with regard to the local situation of property within the meaning of section twenty of the Finance Act 1894 of the United Kingdom Parliament.

In order to ascertain the amount payable as estate duty under this Act, every administrator shall, within six months from the date of the grant of administration, deliver to the Commissioner a statement in writing in the prescribed form, containing the prescribed particulars with respect to the dutiable estate of the deceased, and with respect to the several successors of the deceased, and containing such other particulars (if any) as may be prescribed for the purposes of this Act.

The Commissioner may, upon application, extend the time within which the statement must be delivered, and may also permit or require the statement to be amended.

Every such statement and every amendment thereof shall be verified by statutory declaration in the prescribed form and manner.

Any administrator who fails to deliver a statement to the Commissioner within the time prescribed by this section, or to deliver an amended statement when required by the Commissioner so to do, shall be liable on summary conviction to a fine not exceeding fifty pounds.

No administrator shall be exempt from the requirements of this section on the ground that no estate duty is payable.

On the delivery of the aforesaid statement by the administrator the Commissioner shall proceed to assess the estate duty payable, and shall give notice of his assessment to the administrator. If the Commissioner is of the opinion that no estate duty is payable, he shall certify to the administrator accordingly.

If the administrator fails to deliver a statement within the time limited by this Act in that behalf, or if no grant of administration is made within six months after the death of the deceased, the Commissioner may proceed to assess the estate duty payable, and to recover payment of the duty so assessed, in the same manner, with all necessary modifications, as if a statement had been duly delivered by an administrator.

Every administration shall immediately upon the grant thereof be sent to the Commissioner by the Registrar or other proper officer of the Court by which the same is granted, and the Commissioner shall issue the same to the person entitled to receive it on payment of the estate duty assessed and payable and on being satisfied that all fees payable to the Crown in respect of the grant of probate or letters of administration (in this section referred to as administration fees) have been paid.

The Commissioner, if he thinks fit, may issue an administration before payment of estate duty if the administrator gives security, to the satisfaction of the Commissioner, for the payment of the full duty, either by mortgage of some portion of the property affected by the administration sufficient, in the opinion of the Commissioner, to secure the payment of the duty, or by bond in favour of the Crown either with or without sureties, for the payment of the full duty within six months from the date of the grant of administration or such further time as is agreed to by the Commissioner and set forth in the bond.

The penalty of any such bond shall be such amount as the Commissioner thinks fit but not exceeding twice the estimated duty, calculated upon the approximate value of the dutiable estate and taking into account the interests of the successors, as verified, if the Commissioner so requires, by the statutory declaration of the administrator or of any other person.

Where an extension of time is allowed as hereinbefore provided for the payment of estate duty, a like extension may be allowed for the payment of administration fees, and in any such case the administrator shall give such additional security (if any) as the Commissioner may require.

Where the Public Trustee is the administrator, it shall not be necessary for him to give any such security; and the Commissioner may, if he thinks fit, issue the administration before payment of estate duty or administration fees accordingly.

Subject to the exceptions hereinafter provided, a duty (in this Act referred to as gift duty) shall be chargeable in respect of every gift within the meaning of this Act which is made after the commencement of this Act.

In this Act the term “gift” means any disposition of property which is made otherwise than by will, whether with or without an instrument in writing, without fully adequate consideration in money or money’s worth.

If any such disposition is made for a consideration in money or money’s worth which is inadequate, the disposition shall be deemed to be a gift to the extent of that inadequacy.

In this Act the term “donor” means the maker of a gift, and the term “beneficiary” means any person acquiring any beneficial interest under a gift, and each of those terms includes a body corporate.

In this Act the term “disposition of property” means—

Without restricting the generality of paragraph (f) of subsection one of this section, it is hereby declared that for the purposes of that paragraph the passing by a company of a resolution which, by the extinguishment or alteration of the rights attaching to any shares or debentures of the company, results directly or indirectly in the estate of any shareholder or debenture holder of the company being increased in value at the expense of the estate of any other shareholder or debenture holder shall be deemed to be a transaction entered into by that other shareholder or debenture holder if he could have prevented the passing of the resolution by voting against it or otherwise.

For the purposes of this section—

In this Act the term “voluntary contract” means a contract entered into, whether with or without an instrument in writing, without fully adequate consideration in money or money’s worth. If any contract is made for a consideration in money or money’s worth which is inadequate, the contract shall be deemed to be voluntary to the extent of that inadequacy.

A disposition of property made in performance or satisfaction of a voluntary contract shall be deemed to be a gift, whether the contract or disposition was made before or after the commencement of this Act.

A voluntary contract, whether made before or after the commencement of this Act, shall not in itself constitute a gift within the meaning of this Act, but shall become or be deemed to have become a gift so soon and so far as it has attached to and affected the legal or equitable title to any property to which it relates.

No marriage settlement made before and in consideration of marriage by either party to the marriage, or made after marriage by either party thereto in pursuance of a binding antenuptial contract, shall be liable to gift duty with respect to any beneficial interest reserved thereby to the party making the settlement, or with respect to any beneficial interest acquired thereunder by the other party to the marriage, or by the children or remoter issue of the marriage.

Notwithstanding anything in this section, a covenant or contract contained in a marriage settlement, whether before or after the commencement of this Act, to pay money or to make any disposition of future acquired property shall be deemed to be a voluntary contract; and all the provisions of section forty-three of this Act shall apply thereto, and gift duty shall be payable accordingly.

No gift duty shall be payable except in respect of property situated in New Zealand at the time at which the gift is made.

For the purposes of gift duty the local situation of property shall be determined in manner following:

A gift shall not be taken into account as such, either for the purposes of gift duty or for the purposes of estate duty, if the Commissioner is satisfied—

The determination of the Commissioner that a gift is not entitled to exemption under this section shall be final and conclusive.

No gift duty shall be payable in respect of any of the following matters:

Where a contributor to any superannuation fund has, whether before or after the commencement of this Act, made an election to accept from the fund a reduced retiring allowance or pension in consideration of the payment after his death of a pension from the fund to his widow or other dependant, his election shall not be taken into account for the purposes of gift duty, and no stamp duty shall be payable on the instrument of election.

For the purposes of this Act a single disposition of property shall be deemed to constitute a single gift, although distinct interests are acquired thereunder by different beneficiaries.

For the purposes of this section the term “aggregated gift”, in relation to a gift, means any other gift made at the same time or within twelve months subsequently or previously (whether before or after the commencement of this Act), by the same donor to the same or any other beneficiary, not being a gift exempt from gift duty by virtue of any of the provisions of sections forty-four to forty-eight of this Act or exempt from gift duty by reason of its nature.

Nothing in subsection one of this section shall be construed to exclude from the definition of the term “aggregated gift” any gift on which no gift duty is payable only because the value of that gift does not exceed five hundred pounds.

The amount of the gift duty payable on a gift shall be calculated as follows:

1954, No. 52

The duty shall be payable on the making of the gift notwithstanding that the interests of the beneficiaries or of any of them may be future interests.

Where a gift first becomes liable to gift duty by reason of the making of a subsequent gift, the gift duty on the first gift shall be payable immediately upon the making of the subsequent gift.

Where a gift subject to gift duty subsequently becomes liable to a greater amount of gift duty by reason of the making of a subsequent gift, the additional gift duty on the first gift shall be payable immediately upon the making of the subsequent gift.

Where by reason of any other gift or gifts made previously or subsequently by the same donor a gift not subject to gift duty subsequently becomes dutiable in accordance with this Act, or, being subject to gift duty, subsequently becomes liable to a greater amount of gift duty, the references in this Act to the date of the making of the gift shall, so far as may be necessary in their application to any gift so becoming dutiable or becoming liable to a greater amount of gift duty, be construed as references to the date on which the gift has become dutiable or has become liable to a greater amount of gift duty.

Subject to the provisions of this Part of this Act, the value of a gift shall be deemed and taken to be the present value thereof at the time of the making of the gift.

For the purposes of this Part of this Act, the value of any gift shall be deemed and taken to be its value in complete pounds.

For the purposes of gift duty section fifteen of this Act shall, with all necessary modifications, apply with respect to every contingency affecting the gift, in the same manner in which that section applies with respect to contingencies affecting the interest of the deceased in any property forming part of his dutiable estate.

For the purpose of calculating the value of a gift no deduction shall be allowed in respect of any mortgage, charge, encumbrance, or liability affecting or incident to the property included in the gift, if and so far as the beneficiary is entitled as against the donor or any other person, or as against any other property, to any available right of indemnity or contribution in respect of that mortgage, charge, encumbrance, or liability.

When any gift is made in consideration or with the reservation of any benefit or advantage to or in favour of a donor, whether by way of any estate or interest in the same or any other property, or by way of mortgage or charge, or by way of any annuity or other payment, whether periodical or not, or by way of any contract for the benefit of the donor, or by way of any condition or power of revocation or other disposition, or in any other manner whatsoever, whether that benefit or advantage is charged upon or otherwise affects the property comprised in the gift or not, no deduction or allowance shall be made in respect of that benefit or advantage in calculating the value of the gift, and the gift shall be valued and gift duty shall be paid as if the gift had been made without any such consideration or reservation:

Provided that—

1954, No. 52

This section shall not apply to a gift made in consideration of any benefit or advantage to or in favour of a donor by way of any annuity or other payment, whether periodical or not, if and so far as the annuity or payment—

For the purposes of this section the expression “ascertainable” means ascertainable as at the date of the gift to the satisfaction of the Commissioner.

Where the donor of a gift to which section fifty-four of this Act applies (in this subsection referred to as the original gift) makes a further gift of the whole or any part of the benefit or advantage created or reserved on the making of the original gift, there shall be deducted from the gift duty which would otherwise be payable in respect of the further gift (so far as that gift duty extends) an amount bearing the same proportion to the gift duty paid on the original gift as the value of the further gift bears to the value of the original gift, and only the residue (if any) of the gift duty on the further gift shall be payable:

Provided that the amount so deducted or, where there are two or more further gifts, the aggregate of the amounts so deducted shall not exceed an amount bearing to the gift duty paid on the original gift the same proportion as the value of the benefit or advantage as originally created or reserved bears to the value of the original gift.

Gift duty shall constitute a debt due and payable by the donor to the Crown on the making of the gift.

The duty shall also constitute a charge on all property comprised in the gift.

Unless it is otherwise provided by the terms of the gift, a beneficiary shall be entitled to be indemnified by the donor against the operation of any such charge.

No such charge shall prevail against the title of a purchaser for value and in good faith without actual notice of the existence of the charge.

Without excluding the liability of the donor under the foregoing provisions, gift duty shall constitute a debt due to the Crown by the beneficiary on the making of the gift:

Provided that where there is more than one beneficiary under the same gift, each of them shall be liable only for the same proportion of the gift duty as the value of his interest bears to the total value of the gift:

Provided also that where the interest of a beneficiary is a future interest he shall not become personally liable until it becomes an interest in possession.

Unless it is otherwise provided by the terms of the gift, a beneficiary shall be entitled to be indemnified by the donor against all liability under this section.

When a gift has been made by way of trust for any beneficiary the gift duty shall, without excluding the liability of the donor or beneficiary under the foregoing provisions, constitute a debt due to the Crown by the trustee on the making of the gift.

Unless it is otherwise provided by the terms of the gift, the trustee shall be entitled to be indemnified by the donor against all liability under this section.

Within one month after the making of any gift the value of which exceeds five hundred pounds, or the value of which when aggregated with the value of all gifts made by the donor within twelve months previously exceeds five hundred pounds, the donor shall deliver to the Commissioner a statement in the prescribed form, verified by statutory declaration in the prescribed form and manner, and containing all such particulars with respect to the gift as are necessary to enable the Commissioner to determine whether the gift is dutiable and to assess the duty thereon (if any); and the Commissioner shall thereupon proceed to assess and recover gift duty accordingly.

If the gift has been created or is evidenced by any written instrument, the donor shall deposit with the Commissioner, along with the statement aforesaid, the said instrument, or a copy thereof verified as a true copy by statutory declaration.

After the delivery of the aforesaid statement it shall be the duty of the donor, and of every beneficiary or trustee of a beneficiary, to furnish the Commissioner with such additional evidence as he reasonably requires for the purposes of this Act with respect to the gift.

When an instrument is presented to the Commissioner for stamping under the Stamp Duties Act 1954 and is an instrument creating or evidencing a gift chargeable with gift duty under this Act, the Commissioner shall impound the instrument until the full amount of gift duty has been paid in accordance with this Act.

If the donor of any gift the value of which exceeds five hundred pounds makes default in delivering the prescribed statement of particulars to the Commissioner within one month after the making of the gift, it shall be the duty of every beneficiary, and of the trustees (if any) of any beneficiary, within fourteen days after the default, to deliver the same statement which the donor ought to have delivered, and also to deposit with the Commissioner the instrument of gift (if any), or a copy thereof verified by statutory declaration, and at all times thereafter to furnish the Commissioner with such additional evidence as he reasonably requires for the purposes of this Act with respect to the gift.

The provisions of this Act as to gift duty shall apply to every gift, whether made in New Zealand or elsewhere; but if the gift is made out of New Zealand the period of three months from the making thereof shall be substituted for the period of one month from the making thereof wherever the last-mentioned period is fixed for any purpose in this Act.

If a donor, beneficiary, or trustee of a beneficiary makes default in delivering to or depositing with the Commissioner any statement or other document which he is hereby required to deliver or deposit, or in furnishing the Commissioner with any evidence which he is hereby required to furnish, he shall be liable on summary conviction to a fine not exceeding two pounds for every day during which he so makes default, or one hundred pounds in the whole.

If the full amount of gift duty on any gift (not including any deficient duty payable by virtue of a reassessment under section fifty-two of this Act) is not paid within one year after the making of the gift, there shall be added by way of penalty a further sumequal to ten per cent of the duty so unpaid, and the additional sum shall, except for the purposes of sections sixty-six and sixty-seven of this Act, be deemed to be gift duty and shall be chargeable and recoverable accordingly.

The said penalty shall be in addition to and not in substitution for any fine to which the donor or any other person is liable under this Act.

The Minister, or the Commissioner acting with the general or special authority of the Minister, may, if he thinks fit, on special grounds, reduce, remit, or refund in whole or in part any penalty incurred under this section, but no such refund shall be made unless application therefor is received by the Commissioner within six months after the date of the payment of the penalty.

If a donor makes default in delivering to the Commissioner, within one month after the making of the gift, the statement required by this Act to be so delivered, the Commissioner may thereupon proceed to assess and recover the duty payable on the gift in the same manner as if the statement had been duly delivered.

When the same property is liable both to gift duty and also (upon the death of the donor) to estate duty, the amount paid or payable by way of gift duty shall be deducted from the sum which would otherwise be payable in respect of that property by way of estate duty, and only the residue (if any) of that sum shall be payable as estate duty.

This section shall extend and apply to deed of gift duty under any former Act relating to deed of gift duty, in the same manner as to gift duty under this Act or any former Act.

Where any disposition of property is subject to gift duty under this Act and also under the law of any country outside New Zealand, and the Commissioner is satisfied that the law of that country makes provision for the rebate of gift duty similar to the provision contained in this section, the Commissioner may allow a rebate of the gift duty payable under this Act of an amount equal to one-half of the gift duty payable under this Act or under the law of that country, whichever is the lesser amount.

Where in pursuance of any Act any payment is made out of the estate of a deceased person without probate or letters of administration having been obtained, notice of the payment shall be given in the prescribed form to the Commissioner by the person making the payment.

Every person making any such payment who fails within fourteen days after payment to give the prescribed notice is liable to a fine not exceeding five pounds.

Any administrator who is dissatisfied in point of law or of fact with any assessment of estate duty made by the Commissioner, and any donor who is dissatisfied in point of law or of fact with any assessment of gift duty so made, may, within twenty-one days after notice of the assessment has been given to him, deliver to the Commissioner a notice in writing requiring him to state a case for the opinion of the Supreme Court.

The Commissioner shall thereupon state and sign a case accordingly setting forth the questions of law or fact in issue and the assessment made by him, and shall deliver the case so signed to the administrator or donor (hereinafter referred to as the appellant). In this subsection the term “Commissioner” does not include a District Commissioner of Stamp Duties.

The appellant shall, within fourteen days after receiving the case, transmit the same to a Registrar of the Supreme Court in such judicial district as the appellant thinks fit; and the Registrar shall thereupon enter the case for hearing at the first practicable sitting of the Court and shall give notice thereof to the appellant and to the Commissioner.

On the hearing of the case the Supreme Court shall determine the questions of law or fact submitted, and the Commissioner shall thereupon assess the duty payable in accordance with that determination.

The Supreme Court may, if it thinks fit, cause the case to be sent back to the Commissioner for amendment, and thereupon the case shall be amended accordingly; and the Court shall thereupon proceed to hear and determine the questions of law or fact so submitted.

The costs of any such appeal to the Supreme Court shall be in the discretion of the Court, having regard to the extent to which the Commissioner’s assessment exceeds the amount admitted by the appellant before the appeal commenced, and the extent to which the Commissioner’s assessment is upheld or varied.

If and so far as any such appeal relates to a question of fact, the Supreme Court may make such order as it thinks fit as to the trial of that issue and as to the reception of evidence by affidavit or otherwise.

Any allegations of fact comprised in a case stated by the Commissioner under this section may be disputed by the appellant on the hearing of the appeal, but, in the absence of sufficient evidence adduced by the appellant to the contrary, all such allegations shall be presumed to be correct.

Any appeal under section sixty-nine of this Act may, if and so far as it relates to a question of law, be removed by the Supreme Court into the Court of Appeal for determination there.

If any person makes default in delivering to the Commissioner any statement required by this Act to be so delivered for the purposes of any duty under this Act, the Commissioner may apply to the Supreme Court for an order directing the person so in default to deliver the statement within such period as the Court may order; and on the hearing of the application the Court may make such order in that behalf as is thought just, and any order so made for the delivery of a statement may be enforced by attachment in accordance with the practice of the Supreme Court.

The Commissioner may apply to the Supreme Court for such an order as is referred to in subsection one of this section, although the time allowed by this Act for the delivery of the statement has not expired; and if the Court is of opinion that sufficient reason has been shown for requiring delivery of the statement before the said time has expired it may make an order accordingly.

Every person who, with intent to evade the payment of any duty under this Act, delivers to the Commissioner any document which that person knows to be false in any particular shall be guilty of an indictable offence, punishable by imprisonment for a term not exceeding three years, or by a fine not exceeding five hundred pounds.

Where by reason of the complexity or uncertainty of the facts, or from any other cause, it is difficult or impracticable to ascertain exactly the amount of any duty payable under this Act, or so to ascertain the same without undue delay or expense, the Commissioner may assess by way of composition for the duty so payable such sum as the Commissioner thinks proper under the circumstances, and may accept payment of the sum so assessed in full discharge of all claims for that duty.

No such composition shall constitute a good discharge from duty if it has been procured by fraud or by a wilful failure to disclose material facts.

In this section the term “Commissioner” does not include a District Commissioner of Stamp Duties.

Where by reason of coincident provisions in this Act the same description of duty may be assessed and charged in different ways, it shall be assessed and charged in that manner which is estimated to produce the greatest amount of duty.

For the purpose of assessing estate duty or gift duty the value of any land may be determined either by agreement between the Commissioner and the administrator in the case of estate duty, or between the Commissioner and the donor in the case of gift duty, or in either case by a valuation made on the requisition of the Commissioner by the Valuer-General in accordance with the Valuation of Land Act 1951, as of the date at which the value of that land is to be determined for the purpose of the assessment of the said duty.

Subject to the right of appeal provided by this section, every such agreement or valuation shall be final and conclusive.

Whenever a valuation of land is made by the Valuer-General under this section, notice of the amount of that valuation shall be given by him in accordance with the Valuation of Land Act 1951—

Any person to whom notice is so given may within one month thereafter appeal against the valuation to the Land Valuation Court, in accordance with the Valuation of Land Act 1951, and all the provisions of that Act shall extend and apply to any such appeal accordingly.

In this section the term “land” has the same meaning as in the Valuation of Land Act 1951, and the term “value” means capital value as defined by that Act. Where any property that is within the meaning of the term “land” in its proper legal sense is excluded from the definition of that term as used in this section, the value of that property for the purposes of this Act shall be ascertained under section seventy-six of this Act.

There shall be payable by the administrator in the case of estate duty, or by the donor in the case of gift duty, in respect of any valuation made pursuant to this section such fee as may be prescribed by regulations.

Subject to the provisions of section seventy-five of this Act, the value of any property shall, for the purpose of assessing any duty under this Act, be ascertained by the Commissioner in such manner as he thinks fit:

Provided that in ascertaining the value of shares in a company, including a private company, no account shall be taken by the Commissioner of the effect upon that value of any restrictive provisions as to the alienation or transfer of those shares contained in the memorandum or articles of association of the company.

For the purposes of this Act the expectation of life of any person shall be deemed and taken to be the appropriate period specified in that behalf in Table A or Table B in the Third Schedule to this Act, according to the sex and age of that person:

Provided that the expectation of life of any person who is suffering from a mortal illness shall be ascertained by the Commissioner in such manner as he thinks fit.

For the purposes of this Act, the present value of any annuity or other interest for the life of any person or for any other period, or the present value of any interest expectant on the death of any person or on any other event, shall be calculated on the basis of compound interest at the rate of five per cent per annum with annual rests, and accordingly Tables A, B, and C in the Third Schedule to this Act shall be used as far as they are applicable.

This section shall come into force on the passing of this Act.

Notwithstanding any assessment or payment of any duty under this Act, or any certificate of the Commissioner that no such duty is payable, it shall be lawful for the Commissioner at any time thereafter, if it is discovered that any duty payable has not been fully assessed and paid, to make a further assessment of the duty so unpaid, and to recover the same in the same manner as if no previous assessment or payment had been made.

Except in the case of fraud, an administrator shall not be personally liable for any estate duty under any such further assessment by reason of having administered or distributed the estate of the deceased without retaining sufficient assets to satisfy the duty.

Nothing in this section shall affect the operation of any settlement of a claim for duty expressed to be made by way of composition under the provisions of this Act in that behalf.

Any duty under this Act may be recovered by the Commissioner, on behalf of the Crown, by action in his official name in any Court of competent jurisdiction against any person liable to pay the same.

In this section the term “Commissioner” does not include a District Commissioner of Stamp Duties.

At any time within six years after the payment of any duty, or if application for a refund is made in writing within that period, the Commissioner may, on proof to his satisfaction that the duty has been paid in excess, refund the amount overpaid to the person entitled thereto.

Any claim for a refund of duty paid in excess under this Act may be enforced by action against the Commissioner in his official name as nominal defendant on behalf of the Crown, in any Court of competent jurisdiction, and not otherwise. In this subsection the term “Commissioner” does not include a District Commissioner of Stamp Duties.

Except where otherwise provided in this Act, no such action shall be brought after the expiration of six years from the date of payment of the duty so paid in excess.

All money payable under this Act by way of refund of duty shall be paid out of the Consolidated Fund without further appropriation than this Act.

When any estate duty or gift duty constitutes a charge on any real property, the Commissioner may register the charge by depositing with the District Land Registrar or the Registrar of Deeds, as the case may require, in the land registration district in which the land is situated a certificate under the hand of the Commissioner setting forth the description of the land so charged and the amount of duty payable; and the said Registrar shall, without payment of any fee, register the certificate against the title to the land charged.

Upon the registration of any such certificate it shall be deemed and taken to be actual notice to all persons of the existence of the charge, and the charge shall have operation and priority accordingly.

When any such charge has been satisfied, the Commissioner shall deposit with the said Registrar a release of the charge, and the Registrar shall, without payment of any fee, register the same against the title to the land.

If any estate duty or gift duty constitutes by virtue of this Act a charge on any property the Supreme Court may make such order as it thinks fit, either for the sale of that property or any part thereof, or for the appointment of a receiver of the rents, profits, or income thereof, and for the payment of the duty and the costs of the Commissioner out of the proceeds of the sale or out of the rents, profits, or income.

Where any property has been sold under any such order, the Supreme Court may, on the application of the purchaser or the Commissioner, make an order vesting the property in the purchaser.

Every such vesting order shall have the same effect as if all persons entitled to the property had been free from all disability and had duly executed all proper conveyances, transfers, and assignments of the property for such estate or interest as is specified in the order, and the order shall be subject to stamp duty accordingly; and in the case of land which is subject to the Land Transfer Act 1952, the purchaser’s title thereto shall be registered accordingly.

The Commissioner is hereby empowered to take any statutory declaration required or authorized by this Act or by any regulations thereunder.

At any time after the expiration of fifty years from the date of the death of any deceased or from the date of the making of any gift the Commissioner may, at his discretion, destroy any statement or other document or record delivered to him or kept by him with respect to estate duty or other duty payable by reason of the death of that deceased or, as the case may be, with respect to gift duty on that gift.

The Governor-General may from time to time, by Order in Council, make regulations, consistent with this Act,—

Notwithstanding anything in this Act to the contrary, no estate duty shall be payable in respect of any property included in a succession order made by the Maori Land Court or Maori Appellate Court on the death of a Maori, nor shall any such property be included as part of the dutiable estate of the deceased Maori.

When any succession order is so made in respect of the property of a deceased Maori, the property included in that succession order shall be subject to a duty (hereinafter called Maori succession duty) payable to the Crown.

Maori succession duty shall be assessed and payable at the rate of two per cent of the value of the property included in the succession order, but shall be reduced where necessary so as not to exceed the amount by which that value exceeds one thousand pounds.

No Maori succession duty shall be payable on any succession order if the property included therein is of a less value than one thousand pounds.

A duplicate of every succession order made by the Maori Land Court or Maori Appellate Court shall be forthwith sent by the Registrar of that Court to the Commissioner, who shall thereupon proceed to assess the Maori succession duty payable in respect thereof, and to certify under his hand (upon the face of the order) the amount of the duty so assessed and payable, and shall return the order to the Registrar:

Provided that this subsection shall not apply in any case where the Registrar certifies in writing that the value of the property included in the succession order is less than one thousand pounds.

Maori succession duty shall, as from the death of the deceased, constitute a charge upon the property in respect of which it is payable; and at any time after the assessment of that duty in manner aforesaid the Maori Land Court may, on the application of the Commissioner, enforce the charge by the appointment of a receiver in respect of the property so charged. A receiver so appointed shall have the same rights, powers, duties, and liabilities as a receiver appointed by the Supreme Court in the exercise of its jurisdiction in that behalf.

No duplicate of a succession order shall be transmitted by the Maori Land Court or Maori Appellate Court for registration, or issued to any successor, until and unless the Maori succession duty has been assessed and certified in manner aforesaid; and every duplicate so transmitted or issued shall have written on the face thereof a statement of the amount of duty so assessed.

No succession order which bears upon the face thereof any such statement of duty payable thereon shall be registered under the Land Transfer Act 1952 until and unless there has been delivered to the District Land Registrar a certificate under the hand of the Commissioner that all such duty has been paid.

Every certificate of assessment of Maori succession duty made by the Commissioner shall be final and conclusive, both as to questions of law and fact, save that at any time within two months after the certificate has been received from the Commissioner by the Maori Land Court any person interested therein may appeal from the assessment of the Commissioner to the Maori Appellate Court, which may vary the assessment so made, and the order of the Maori Appellate Court on any such appeal shall be final and conclusive as against all persons, whether parties to that appeal or not.

Every such appeal shall be brought and prosecuted in the manner and shall be subject to the conditions prescribed by regulations under this Act; and, so far as such regulations do not extend, every such appeal shall be subject to the same rules as an appeal to the Maori Appellate Court from the Maori Land Court.

The Governor-General may from time to time, by Order in Council, make such regulations as he thinks necessary for the purpose of carrying into full effect the provisions of this section.

Section one hundred and thirty-one of the Maori Affairs Act 1953 is hereby consequentially amended by omitting from subsection four the words “two hundred pounds”, and substituting the words “one thousand pounds”.

The provisions of section eighty-two of this Act shall, with the necessary modifications, apply with respect to the charges constituted by Maori succession duty in the same manner as they apply with respect to charges constituted by estate duty or gift duty.

The Maori Land Court, or the Maori Trustee, or the East Coast Commissioner, having for the time being possession or control of any money belonging to the owner of any land subject to a charge in respect of Maori succession duty, may, in its or his discretion, satisfy that charge in whole or in part out of that money.

The enactments specified in the Fourth Schedule to this Act are hereby repealed.

The Death Duties Interest Order 1946 is hereby revoked.

The provisions hereby repealed or revoked, in so far as they relate to death duties, shall continue to apply to the estates of all persons who have died before the commencement of this Act, and, in so far as they relate to gift duty, shall continue to apply to all gifts made before the commencement of this Act, and, in so far as they relate to Maori succession duty, shall continue to apply to all succession orders made before the commencement of this Act.

Without limiting the provisions of the Acts Interpretation Act 1924, it is hereby declared that the repeal or revocation of any provision by this Act shall not affect any document made or any thing whatsoever done under the provision so repealed or revoked or under any corresponding former provision, and every such document or thing, so far as it is subsisting or in force at the time of the repeal or revocation and could have been made or done under this Act, shall continue and have effect as if it had been made or done under the corresponding provision of this Act and as if that provision had been in force when the document was made or the thing was done.

Without limiting the provisions of the Acts Interpretation Act 1924, it is hereby declared that the repeal of subsection three of section sixteen and section seventeen of the Death Duties Amendment Act 1953 shall not affect the amendments made by that subsection and section.

All proceedings in respect of offences committed or alleged to be committed against any enactment hereby repealed or revoked before the date of the repeal or revocation may be instituted or continued as if this Act had not been passed.

All references in any enactment or in any deed, agreement, instrument, notice, or other document whatsoever to death duty or death duties shall, in relation to the estate of a person dying after the commencement of this Act and unless the context otherwise requires, be deemed to be references to estate duty under this Act.