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Wednesday, 16 December 1914

Senator KEATING (Tasmania) . - It appears to me that clauses 30 and 38 find a proper place in this Bill. Under clause 30, if the Commissioner is satisfied that the duty cannot be paid immediately, he can give an extension of time for its payment. Experience has shown that it happens very often that a person may die possessed of real estate of considerable value and have no money, or he may even have an overdraft. The duty payable upon the estate under this Bill maynot be readily available. If, under clause 30, the Commissioner is satisfied that there is no money immediately available for the payment of the duty, he may grant an extension of time, and then, under clause 38, the administrator is given power to obtain the money necessary to pay the duty by way of a mortgage upon the real estate or by obtaining an order from the High Court or a Supreme Court permit ting him to sell the whole or any portion of the estate for the purpose of enablinghim to pay the duty. Clause 38 is necessary to give the administrator authority to do this, which otherwise he would not have. As the Minister intimated by his. interjection, the administrator has no right to deal with the estate as if itwere his own. He is bound to deal withit according to the terms of the will, of which he is the executor, or according to the law regulating the estates of persons who die intestate.

Senator Findley - Is there a choice as to the course which should be pursued ?

Senator KEATING - Certainly.

Senator Findley - Then the Commissioner might have the property mortgaged.

Senator KEATING - No, not the Commissioner. Let me assume that a person dies entitled to £50,000 worth of real estate, and appoints Senator Findley as his executor. He may not have left any petty cash or current account which could be called upon immediately for the payment of a duty of £200 or £300. Senator Findley, under clause 30, would be able to represent to the Commissioner that there was no cash in hand from which to pay the duty. The Commissioner could say that he might have an extension of time, which under the Bill is limited bo two years. The honorable senator might then induce a friend or a brother of the deceased to pay the duty, he might pay it out of his own pocket, or he might take advantage of clause 38 to mortgage a portion of the real estate, in order to realize a sum sufficient to pay the duty, or he might apply to the Court to enable him to sell a portion of the estate, and pay the duty out of the proceeds of the sale. Clauses 30 and 38 legalize certain courses of action which would naturally be taken.

Clause agreed to.

Clause 31 -

If the duty is not paid as provided by section 20 of this Act or such further time as is provided by section 30 of this Act, additional duty amounting to 10 per centum of the duty unpaid shall be payable in addition, by way of penalty.

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