Barrack v Commissioner of Estate and Gift Duties [1983] FijiLawRp 22; [1983] 29 FLR 23 (24 November 1983)

[1983] 29 FLR 23

SUPREME COURT OF FIJI

Civil Jurisdiction

SARAH FLORENCE BARRACK

v

THE COMMISSIONER OF ESTATE AND GIFT DUTIES

Kermode J.

24 November 1983

Gift Duty - Disclosure of gifts in Gift Duty Statement - later in formal memoranda - the Statement and Memoranda did not create, merely evidenced intention to make gifts - Counsel's agreement that gifts does not alter the legal situation that the gifts are still incomplete.

D. Whippy for the Appellant
M. J. Scott for the Respondent

Appeal by way of case stated against assessment of Gift duty on purported gifts by appellant to a son.

The Commissioner of Estate and Gift Duties had pointed out the gifts were not perfected at the time the appellant alleged the gifts were made. It was accepted by the parties that gifts had been made.

Questions for opinion of the Court were:

"1. Whether the respondent has correctly assessed the appellant the sum shown in Exhibit 7 (the notice of Gift Duty Statement)?

2. Whether the respondent was correct in aggregating the gifts?"

On 21 June 1979 appellant completed a gift duty statement disclosing a gift of $4000 to a son by way of reduction of loan. On 10 May 1981 she disclosed similarly a gift of $9,306.31 to the son 'in reduction of interest free loans granted in 1975-1979'. No documents accompanied the statements. On 28 July 1979 the Commissioner wrote acknowledging the statements thus:

"Your forgiveness of debts should be made by deeds or documents in writing and your signature should be witnessed by at least one person who is not an interested party."

The appellant provided for each gift what appeared to be an answer to this. Both documents were dated 5 October 1981. One such document read:

"MEMORANDUM OF A GIFT

I the undersigned Sarah Florence Barrack of Sigasiga Estate, Savusavu did on the 1st day of May, 1980 make a gift of $9306.31 to my son Lennard Anthony Barrack in reduction of the interest free loans made by me to him on 1st May 1981. The gift was and is intended to be an irrecovable gift.

And on the 10th day of May, 1981 I completed a Gift Duty Statement relating to my said gift which statement has already been delivered to the Commissioner of Estate and Gift Duties.

Dated the 5th day of October, 1981.