Valuation of Pension Rights for Estate Duty Purposes
New Zealand Law Journal, p. 334, 1982
1 Pages Posted: 12 Mar 2010
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Valuation of Pension Rights for Estate Duty Purposes
Date Written: 1982
Abstract
Lorimer v. Commissioner of Inland Revenue 13 ATR 132 considered the question of whether, in valuing a pension for estate duty purposes, any account should be taken of the liability of the pension to income tax. The court held against the objector on the basis of section 25(2) of the Estate and Gift Duties Act 1978, which provides that “for estate duty purposes, the value of any annuity or other interest … shall be calculated on the basis of compound interest”. As the section made no express reference to taking income tax into account the court held that the pension must not be valued without subtracting any allowance for income tax
Keywords: Estate and Gift Duties Act 1978, Estate Duty, Pension, Income tax, Valuation
JEL Classification: K34
Suggested Citation: Suggested Citation