New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-23
INHERITANCE TAX FR1CD
THE STATE CONTROLLER NOW HAS A"'~
POWER TO DETECT AND VoHHEOi
FRAUDULENT APPRAIsALS.

FRAUDULENT AFPRAlSAls.
.x.rer,e,v important amendment to the Trans
O., 1.x law generally known as the cohatera. IN
.e' ,ax was passed by the Legislature late
., rho last session ard has been recently approF.u
hv tho Governor. The amendment was mace 'o' '"e
.,sa NJ detecting and setting aside rauduieht
,i f,,sc anpraisals of the value or the properly
ard gives the State Controller power ana oppor'u-
nl,v 10 detect such frauds and to recover "na'
r,chtfuly due to the State from estates WIN"
shot,ld be taxed under the act
heretofore It has been VIGOROUSLY the fact. IN
,.,r,l instances that estates which were taxed AT
, small sum were sold by the representatives OF tho
teol person for "A sum much IN excess oi 'ae
amount at which the estate was appraisec ior '"e
u,,pos,s Of taxation. Although this Is STATE TAX
the Controller has been practically power!esS here-
tofore TO prevent such frauds as this, for the rea-
40, that as a rue the appraisal had been made De-
fors the Controller knew anything about IL, ana
Il was doubtful whether or not he hai any power
10 interfere. any further than Hah'hs HIS oo'eS'oA
before the Surrogate who appointed the appraiser.
BY the amendment contained in Chapter 900 OF tho
laws OF the present year. Section l3 OF the transfer
Tax law IL changed by adding 10 II a provision
that the State Controller may, within two years
after an entry OF order or decree OF Surro-
gate determining the value OF an estate and assess
ing the tax thereon make an Application TO JUS
tlce OF the Supreme Court o. the judicial depart
ment in which the former owner OF the estate Ived
Tor a reappYaisal. This may be done when the Con-
,ro.er beheves 'haS the Gpprasa mas peer sf1 10
ulently collusive,y enormously made me JUS
lice 10 whom the application Is made may appoint
a new appraiser. VINO has all the powers; ana re-
ceves the same compensation as provided Tor where
an appraiser Is appointed by a Surrogate IN the
first instance. 1t Is also provided that the new
anpraser's report shall be fled with the Justice by
whom he was appointed. and that the determining
OF the Justice founded upon m. new ppralsers re-
port shall supersede the determination anu assess
f..ent OF the surrogate. -.
IN once he has contended that from the fact that
this was State tax State officials should have
more control over the collecting OF II than tney
have had heretofore. He has also complained tnae
In several instances which have come wltnin M:
personal KNOWLEDGE estates have been appraised az
Mat proved q rid.cuously low figure. but that the
state Authorities had power 10 Interfere. Sew
eral bills have been introduced in an attempt 70
correct these abuses but one OF them was passee
except this one. This Ia considered. however. fary
satisfactory for the that the state Controller
has two years after the apprai ais by the Surrogate In
which 10 make Investigations and detect lraudss
and may then apply to Justice OF the supreme
Court who can appoint an appraiser who will not
be Influenced at all by the Surrogate.