The Commissioner of Taxation, by notice of assessment dated 1953.
16th March 1951, assessed the estate duty payable in respect of the said estate at the sum of £12,546 10s. 9d.
The administrators objected to the assessment and by notice in writing the commissioner informed the administrators that their objection had been disallowed. The administrators thereupon requested the commissioner to treat the objection as an appeal and to forward it to the High Court of Australia.
The appeal was heard before Fullagar J. who, on 28th July 1953, with the concurrence of the parties and pursuant to S. 28 of the Estate Duty Assessment Act 1914-1950, stated a case for the opinion of a Full Court. The relevant portions of the case were as follows :-
2. The assets of the deceased situated outside Australia were situated in Singapore, Malaya, England, Canada and the United States of America. Some of the Canadian assets were situated in the Province of Quebec and some in the Province of Ontario. The assets situated according to relevant United States fiscal laws in the United States of America were as to part situate in the State of California and as to part in other States.
5. Estate duty amounting to £stg. 19,561 6s. lld. (£A24,451 13s. 8d.) was duly paid by the appellants pursuant to the laws of the United Kingdom in respect of the assets of the deceased situate in England which assets were valued at the date of death at £stg. 60,659 2s. 2d. (£A75,823 17s. 8d.). The said duty was calculated on £stg.55,632 14s. Od., the sum of stg.5,026 8s. 2d. having been deducted in respect of investments exempt from duty under S. 47 of the Finance (No. 2) Act 1915 (Imp.) (5 &6 Geo. 5, C. 89), S. 22 (1) of the Finance (No. 2) Act 1931 (Imp.) (21 &22 Geo. 5, C. 49) and S. 60 (1) of the Finance Act 1940 (Imp.) (3 &4 Geo. 6, C. 29).
6. (a) Estate tax amounting to $8,844.22 (United States dollars) was duly paid by the appellants pursuant to the laws of the United States of America in respect of the assets of the deceased situated in the United States of America according to the Internal Revenue Code of the United States, which assets were valued at the date of death at $61,781.75 of which $596 was not taxable under S. 863 (b) of the Internal Revenue Code. Estate tax as aforesaid was paid on the net amount of $57,376.87.
(b) The said tax was duly paid by the appellants on 23rd May 1950 and was due and payable fifteen months after the deceased's death. At the date of such payment the rate of exchange between United States dollars and Australian currency was 2.2275 United States dollars equals one (1) Australian pound and the Australian