Registrar of Probates (SA) v Rymill

The Registrar of Probates (SA) appealed to the Full Court of the Supreme Court of South Australia against a decision of the Master concerning the assessment of succession duty payable on the estate of the late Mr. Rymill. The dispute centred on whether certain property, specifically shares in a company, should be valued at their net present value or at their market value at the date of death for the purposes of calculating succession duty.

The primary legal issue before the Full Court was the correct method for valuing shares in a proprietary company for the purposes of assessing succession duty under the relevant South Australian legislation. Specifically, the Court had to determine whether the Master erred in finding that the shares should be valued at their net present value, taking into account future dividends and capital appreciation, rather than their market value at the date of the deceased's death.

The Full Court held that the legislation required the valuation of property at its market value at the date of death. It reasoned that the concept of "net present value" was not applicable to the valuation of shares for succession duty purposes, as this method involved speculation about future events and was not reflective of the actual market value of the shares at the time of death. The Court emphasised that the market value represents what a willing purchaser would pay for the shares on the open market, irrespective of the deceased's personal circumstances or future expectations. The appeal was allowed, and the matter was remitted to the Master for reassessment of the succession duty on the basis of market value.