UNEMPLOYMENT TAX AFTER DEATH?

Manawatu Times, Volume LIV, Issue 7281, 7 October 1933, Page 7

UNEMPLOYMENT TAX AFTER DEATH?

Liability of Deceased Person's Estate

CASE BEFORE COURT OF APPEAL Per Press Association WELLINGTON, Last Night. Argument was heard before the Court of Appeal to-day on tho question as to whether tho estate of a deceased person is subject to the emergency unemployment charge imposed by the Unemployment Amendment Acts of 1931 and 1932. Appellants are the trustees of , the estate of tho late George Dean Greenwood, sheepfarmer, who died on August 2S, 1932, leaving large estates at Teviotdale, near Amberley. During the year ending February 28, 1932, deceased derived income other than salary and wages of £25,663, tho unemployment charge thereon being duly paid on May 21, and on August 4, testator pfiTd the quarterly instalments of the annua L charge of 20s. The executors claimed that all liability to pay further instalments ceased on the death of testator on August 28, 1932. Tho Crown contended that the executors wore liable to pay both quarterly instalments of tho annual charge of 20s that would havo been payable by testator in November, 1902, and in February, 1933, had he lived, and also the unemployment emergency charge on income received by testator prior to August 28, 1932, the date of his death. Appellants disputed the contentions of the Crown on the grounds that tho charge was purely a personal tax and could be collected only from the persons who remained alive when any instalment became due. In view of the importance of the question, tho trustees, with tho consent of the Crown, applied to the Court by an originating summons to liavo th© questions determined. . _ Mr. Justice Ostler, tho trial Judge, held with some hesitation that the estate was liable for both the annual levy and the charge on income. The trustees have appealed from this aecision. Mr. P. B. Cooke, opening the ease for appellant, stated that, although only approximately £650 was involved in th 6 present appeal, the question was one of considerable importance to executors and trustees. He submitted that the assessment year for the emergency, unemployment charge of Id in. every Is Sd income, imposed by section Id of the Unemployment Amendment Act, 1932, did not begin until April, I9do, although the charge covered income received prior to that date. As deceased was not alive at the date of the commencement of the assessment year there was no liability upon the trustees to pay the charge on the income which deceased had received prior to his death in 1932. Further, that as there was no provision imposing unemployment charges upon estates persons for income arising thereirom the trustees were not liable. The Solicitor-General (Mr- A. Fair, KOI for the Crown, submitted tnat, the object of the Unemployment Amendment Acts of 1931 and 193- was to impose upon every person not specl- - exempted a statutory ImbiMyto pay an annual levy of 20s. This liability did not consist of an obligation to pay a number of separate charges SpSe.ory quarter, but clone charge which the person liabie coMia pay at one time or in quarterly insta - ments. If any person died before all instalments had been paid Ins estate still remained liable for the other m stalments as they became due. With regard to the emergency unem ployment charge of Is m the £, tho Crown contended that the charge tached to income as soon as it was earned, although the tax might no* -be payable until the succeeding year. 1± a person receiving income died be the tax had actually been. paid, estate was nevertheless liable for tae charge and his executors could be sued f ° After hearing Mr. Cooke m the Court reserved its decision and iourned till Monday. 7