By Darryl Browne -
Key decisions
- Cohen v Chief Commissioner of State Revenue [2024] NSWCATAD 136 (Concessional duty)
- Robson as trustee for the bankrupt estate of Lanning v Commissioner of Taxation [2024] FCA 720, Brooks v Brooks [2024] SASC 82 and Ayshan v Abualadas (No 2) [2024] NSWSC 824 (Trustee tax liability)
- Pozzebon v Pozzebon [2024] VSC 205 (Anti-ademption)
- Re Nanut; Nanut v Nanut [2024] VSC 212 (Appointment of executor)
- Re Derreth 2024 BCSC 1033, PGT [2024] NSWCATGD 8, HBI (Application to Review Enduring Power of Attorney) [2024] TASCAT 103, Dedakis v Deligiannis; The estate of Rebecca Deligiannis (also known as Rebeka Deligiannis) [2024] NSWSC 1018, Kavanagh v Londy [2024] QCA 140 and Tong v Tong [2024] ACTCA 27 (Elder financial abuse)
- Blue Mountains Succession Law Conference 2024.9
Concessional duty for deceased’s estate
Harry Cohen died in April 2016 leaving a will which gave a parcel of real estate (the ‘Property’) to his three children, Stephen, Peter and Wendy in equal shares. Harry appointed his wife, Daphne, and Peter as the executors of his will. In 2017, the executors as vendors and Stephen as purchaser entered into a contract for the sale of the Property for $1,599,000. A clause in the contract stated the vendors were only entitled to receive the sum of $1,066,000 on the basis the purchaser was entitled to one third as beneficiary of the estate of the late Harry Cohen.
The contract was sent to the Office of State Revenue NSW (‘OSR’) which assessed the contract as liable for ad valorem duty on the reduced dutiable value of $1,066,000. However, in 2022 the Chief Commissioner wrote to Stephen explaining the dutiable value, on which duty should have been paid in 2017, was the full price shown in the contract, $1,599,000. A Duties Notice of Assessment was issued for a further duty liability of $29,315.00. This approach was consistent with Revenue Rulings – Deceased Estates (DUT 046 issued on 12 February 2020).
