• “(2) For the purpose of subsection (1)(b), the situation of the classes of property referred to in this subsection is determined as follows:

  • “(a) A seagoing ship, or a share or interest in such a ship, is treated as property situated in New Zealand if the ship is registered in New Zealand, and in other cases is treated as property situated outside New Zealand:

  • “(b) Property at sea, other than a seagoing ship, is treated as being situated in New Zealand if in the course of transit, directly or indirectly, to New Zealand, and in other cases is treated as being situated outside New Zealand:

  • “(c) The situation of a debt payable under a bond or other deed is not determined by where the bond or deed is situated:

  • “(d) A debt owing by a corporation, whether incorporated in New Zealand or elsewhere, is treated as property situated in New Zealand if the debt was incurred or is payable in New Zealand and the corporation has an office or place of business in New Zealand, and in other cases is treated as being property situated outside New Zealand:

  • “(e) A debt owing by a person or persons other than a corporation is treated as property situated in New Zealand if any of the debtors are resident in New Zealand, and in other cases is treated as property situated outside New Zealand:

  • “(f) A debt owing by the Crown on behalf of the Government of New Zealand is treated as property situated in New Zealand if the debt was incurred or is payable in New Zealand, and in other cases is treated as property situated outside New Zealand:

  • “(g) Despite paragraphs (a) to (f), a debt represented by an instrument which is negotiable in New Zealand is treated as being property situated in the country in which the instrument is, or is treated as being, situated:

  • “(h) Despite paragraphs (a) to (g), a debt which is secured by mortgage, charge or otherwise on property situated or treated as being situated in New Zealand is treated itself as being situated in New Zealand, unless the value of the security is less than the debt's value, which case the debt is treated as being situated in New Zealand to the extent of the value of the security:

  • “(i) Shares in a company incorporated in New Zealand are treated as property situated in New Zealand:

  • “(j) Shares in a company incorporated outside of New Zealand are treated as property situated outside of New Zealand, except shares registered in a branch register in New Zealand under a law in force in another part of the Commonwealth.”

“68A Valuation of land

• “(1) In this section, capital value and land have the meanings set out in the Rating Valuations Act 1998.

  “(2) For the purpose of gift duty, the value of land situated in New Zealand must be either—

  • “(a) Determined by agreement between the Commissioner and the donor; or

  • “(b) In the absence of an agreement, determined by the Commissioner in accordance with—

    • “(i) The capital value of the land as it appears in the district valuation roll in force under the Rating Valuations Act 1998 on the date that the value of the land is to be determined, together with the cost of improvements that are not included in the valuation that appears in the roll; or

    • “(ii) A special valuation of the capital value of the land, made by a registered valuer at the request of the Commissioner for the purpose of this Act, on the date that the value of the land is to be determined.

  “(3) If the value of land has been determined by the Commissioner in accordance with subsection (2)(b)(i), the donor may, no later than 1 month after the date on which the notice of the determination is given, or within such extended time as the Commissioner may allow, require the Commissioner to redetermine the value of the land in accordance with subsection (2)(b)(ii).

  “(4) If subsection (3) applies, the registered valuer's fee is recoverable by the Commissioner from the donor as a debt due to the Crown.

  “(5) A registered valuer who makes a special valuation of land under subsection (2) or (3) must give notice of the amount of the valuation to the Commissioner.

  “(6) If the Commissioner receives notice of a special valuation, the Commissioner must—

  • “(a) Determine the value of the land in accordance with the special valuation; and

  • “(b) Give notice of the determination to the donor.

  “(7) If subsection (6) applies, section 82(3) applies accordingly.

  “(8) Subject to section 68B, a determination or redetermination of the value of land made under this section is final and conclusive.

  “(9) The district valuation roll is not to be altered as a result of—

  • “(a) An agreement reached for the purpose of this section; or

  • “(b) A valuation or revaluation made for the purpose of this section; or

  • “(c) A decision of a territorial authority or a Land Valuation Tribunal in accordance with section 68B of this Act and Part 4 of the Rating Valuations Act 1998.

“68B Objections to special valuations of land

• “(1) In this section, land and owner have the meanings set out in the Rating Valuations Act 1998.

  “(2) If a donor is dissatisfied with a special valuation of land made by a registered valuer under section 68A, the donor may object to the special valuation by delivering or posting to the Commissioner a written notice of objection setting out the grounds of objection and the value at which the donor considers the land should be valued.

  “(3) An objection must be made no later than 1 month after the date on which the notice of the determination is given to the donor by the Commissioner under section 68A(6), or within such extended time as the Commissioner may allow.

  “(4) The Commissioner must forward the objection to the Valuer-General and Part 4 of the Rating Valuations Act 1998 applies to the objection as far as that Part is applicable and with all necessary modifications.

  “(5) The owner of the land does not have the right to object to the special valuation or to receive notices served under Part 4 of the Rating Valuations Act 1998 unless the owner is also the objector.

  “(6) If an alteration is made to the special valuation as a result of the objection, the Valuer-General must notify the Commissioner, and the Commissioner must redetermine the value of the land accordingly.

“68C Valuation of shares

• “(1) For the purpose of gift duty, when determining the value of shares in a company, the Commissioner may not take account of provisions in the company's constitution, in any agreement, deed or writing or in any other manner whatsoever that restricts the transfer or alienation of those shares, except to the extent that the Commissioner considers that the restrictive provisions are reasonable having regard to all relevant matters.

  “(2) Relevant matters to which the Commissioner must have regard include—

  • “(a) The contribution to the company made by any relevant shareholder by way of services, management, capital or otherwise; and

  • “(b) The benefits received from the company by that shareholder.

“68D Valuation of debt due to donor or controlled company

• “(1) In this section, controlled company means a company that immediately before a gift is made is controlled by or on behalf of—

  • “(a) The donor; or

  • “(b) A person connected with the donor by blood relationship, marriage or adoption; or

  • “(c) The donor and a person who meets paragraph (b).

  “(2) For the purpose of subsection (1), control may be direct or indirect, or may be through the holding of a majority of shares in the company or any other company, or in any other manner whatsoever.

  “(3) Subsection (4) applies if a dutiable gift is made in respect of a debt which is owed to a donor or a controlled company by—

  • “(a) A person connected with the donor by blood relationship, marriage or adoption; or

  • “(b) A controlled company; or

  • “(c) A trustee for—

    • “(i) A person who meets paragraph (a); or

    • “(ii) A controlled company.

  “(4) For the purpose of gift duty, the value of the debt is determined without taking into taking into account that all or part of the debt may not be payable on or before the date of its valuation.

  “(5) This section does not apply to a debt if the Commissioner is satisfied that the donor or the controlled company and the debtor were at all times dealing with each other in such a manner and on such terms as would be expected if the debtor were not the person, controlled company or trustee referred to in subsection (3).

“68E Valuation of share or interest in partnership

• “(1) For the purpose of gift duty, when determining the value of a share or interest in a partnership, the Commissioner may not take account of provisions in an agreement or arrangement by the partners that restricts the value of that share or interest, except to the extent that the Commissioner considers that the restrictive provisions are reasonable having regard to all relevant matters.

  “(2) Relevant matters to which the Commissioner must have regard include—

  • “(a) The contribution to the partnership made by the respective partners by way of services, management, capital or otherwise; and

  • “(b) The benefits received from the partnership by the respective partners.

“68F Valuation of annuities and life interests

• “(1) For the purpose of gift duty—

  • “(a) The life expectation of a person is treated as the period specified in Table A or Table B of the Second Schedule, appropriate to the sex and age of the person; and

  • “(b) The expectation of widowhood of a widow is treated as the period specified in Table C of the Second Schedule, appropriate to the age of the widow.

  “(2) Despite subsection (1), the Commissioner must determine the life expectation or widowhood of a person suffering from a mortal illness in such manner as the Commissioner thinks fit.

  “(3) For the purpose of gift duty, the value of an annuity or other interest for the life of a person or for any other period, or the value of an interest expectant on death of a person or on any other event, is calculated on the basis of compound interest at the rate of 5% per annum with annual rests, and Tables A, B, C and D of the Second Schedule are to be used as far as they are applicable.

“68G Valuation of contingent interests

• “(1) For the purpose of gift duty, every contingency affecting the interest of the donee in the property that is comprised in a dutiable gift, or the value of that property, is treated as having been determined in the manner in which the Commissioner considers it probably will determine, and the interest is to be valued accordingly.

  “(2) If the contingency determines differently from that assumed by the Commissioner, the interest must be revalued on the basis of the actual event and on the date on which the gift was made, and section 82(3) applies accordingly.

  “(3) If an interest in or the value of property will be affected by a widow's remarriage, that possibility—

  • “(a) Is not treated as a contingency under this section; but

  • “(b) Is taken into account in valuing the interest in accordance with Table C of the Second Schedule.”

• “(6) The Commissioner may assess by way of composition the gift duty the Commissioner considers is proper in the circumstances if it is difficult, impracticable or would cause undue delay or expense to determine the exact amount of gift duty payable because of complex or uncertain facts, or any other cause.

• “(6A) The Commissioner may accept payment of the sum assessed by way of composition in full discharge of all claims for that duty.

• “(6B) A composition is not a good discharge from duty if it has been procured by fraud or by failure to disclose material facts.”

“87A Registration of charge for gift duty

• “(1) If gift duty constitutes a charge on land or an interest in land that is subject to the Land Transfer Act 1952 or the Deeds Registration Act 1908 or a mining privilege, lease or licence under the Mining Act 1971, the Commissioner may register the charge by depositing a certificate under the Commissioner's hand setting out the description of the land, interest in land, mining privilege, lease or licence so charged, including a reference to any relevant certificate of title, with—

  • “(a) In the case of land subject to the Land Transfer Act 1952 or a mining privilege, lease or licence that has been registered under the Land Transfer Act 1952 in accordance with the Mining Tenures Registration Act 1962, the District Land Registrar for the land registration district in which the land is situated:

  • “(b) In the case of any other mining privilege, lease or licence, the Mining Registrar in whose office the mining privilege, lease or licence is registered:

  • “(c) In the case of land subject to the Deeds Registration Act 1908, the Registrar of Deeds for the district in which the land is situated.

  “(2) If subsection (1) applies, the appropriate Registrar must, without payment of a fee, register the certificate against the title to the land, or privilege, lease or licence so charged.

  “(3) Registration of the certificate is treated as being actual notice to all persons that the charge exists, and the charge operates and has priority on and after the date of registration.

  “(4) When a charge has been satisfied, the Commissioner must deposit a release of the charge with the appropriate Registrar and the Registrar must, without payment of a fee, register the release against the title to the land, or privilege, lease or licence.

“87B Enforcement of charge for gift duty by High Court

• “(1) If gift duty constitutes a charge on property, the High Court may on application by the Commissioner make such order as it thinks fit, either for—

  • “(a) The payment of all or part of the property to the Commissioner; or

  • “(b) The sale or realisation of all or part of the property and the payment of the proceeds to the Commissioner, or

  • “(c) The appointment of a receiver of the rents, profits or income from the property and the payment of the rents, profits or income to the Commissioner.

  “(2) An order made under subsection (1) applies to the extent that it is necessary to meet the duty and the costs of the Commissioner.

  “(3) If property has been sold under a High Court order, the High Court may, on the application of the purchaser or the Commissioner, make an order vesting the property in the purchaser.

  “(4) A vesting order made by the High Court has the same effect as if all persons entitled to the property had been free from disability and had executed all proper conveyances, transfers and assignments of the property specified in the order, and in the case of land, an interest in land or a mining privilege, lease or licence under the Mining Act 1971, the purchaser's title must be registered under the Land Transfer Act 1952, the Deeds Registration Act 1908 or the Mining Act 1971 accordingly.”