Estate Duty Repeal Act 1999

1: Short Title
This Act may be cited as the Estate Duty Repeal Act 1999.
2: Application
This Act applies on and after the date this Act receives the Royal assent.
1: Amendments to Estate and Gift Duties Act 1968
3: Estate and Gift Duties Act 1968
This Part amends the Estate and Gift Duties Act 1968
4: Interpretation
In section 2 Commonwealth Deceased person Deceased serviceman Emergency force Foreign assets General power of appointment Infant child of the deceased Minister Allowable debt Charitable allowance Charitable succession Charitable successor Deceased successor Dutiable estate Final balance Matrimonial home allowance Personal chattels Predecessor Succession Successor
5: Repealed Parts
Parts 1 2 3
6: Dutiable gift
Section 63(2)
2: For the purpose of subsection (1)(b)
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)
h: Despite paragraphs (a) to (g)
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.
7: Valuation of certain property
Section 68
8: New sections inserted
After section 68
68A: Valuation of land
1: In this section, capital value land 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
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) subsection (2)(b)(ii)
4: If subsection (3)
5: A registered valuer who makes a special valuation of land under subsection (2) or (3)
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) section 82(3)
8: Subject to section 68B
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 Part 4 of the Rating Valuations Act 1998
68B: Objections to special valuations of land
1: In this section, land owner Rating Valuations Act 1998
2: If a donor is dissatisfied with a special valuation of land made by a registered valuer under section 68A
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)
4: The Commissioner must forward the objection to the Valuer-General and Part 4 of the Rating Valuations Act 1998
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
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
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)
3: Subsection (4)
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)
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
b: The expectation of widowhood of a widow is treated as the period specified in Table C of the Second Schedule
2: Despite subsection (1)
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
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)
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
9: Assessment of gift duty
Section 82(6)
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.
10: Gift duty to be a charge on the property comprised in the gift
Section 87(4)
11: New sections inserted
After section 87
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 Deeds Registration Act 1908 Mining Act 1971
a: In the case of land subject to the Land Transfer Act 1952 Land Transfer Act 1952 Mining Tenures Registration Act 1962
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
2: If subsection (1)
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)
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 Land Transfer Act 1952 Deeds Registration Act 1908 Mining Act 1971
12: Refund of gift duty, penalty, and interest paid in excess
In section 89(2) section 26(2) of this Act Section 68(2) of this Act section 68G
13: Repealed schedule
Schedule 1
14: Repealed provisions to apply to pre-December 1992 estates
Despite sections 4 5 13 section 2 1 2 3 1 Estate and Gift Duties Act 1968
15: Consequential amendments
1: The Acts specified in Part 1
2: The regulation specified in Part 2
2: Amendment to Tax Administration Act 1994
16: Tax Administration Act 1994
This Part amends the Tax Administration Act 1994
17: Addition to Schedule
The Estate Duty Repeal Act 1999 is added to the schedule listing Inland Revenue Acts.