Executor of the Estate of Hasham v. The Commissioner of Estate Duty. Misc. Civ. App. 8-A-70; 13/3/71; Bramble J.

Executor of the Estate of Hasham v. The Commissioner of Estate Duty. Misc. Civ. App. 8-A-70; 13/3/71; Bramble J.

This is an appeal against a decision of the Commissioner of Estate Duty by which he ordered estate duty to be paid on a Policy of Insurance. The sum of Shs. 44, 460/- was paid to the employers of the deceased for the benefit of his dependants. The sum was due under a Group Term Assurance Policy operated by the employers for the benefit of their employees. One of the rules of he policy was that the benefits under it were strictly personal and could not be assigned or charged or alienated in any way. According to s. 12 (1) of the Estate Duty Ordinance (Cap. 527), no estate duty is payable in respect of the proceeds of any policy of assurance (b) “in or over which the deceased had at no time during the three years immediately preceding his death any interest or power of disposition.

            Held: (1) “The instant case falls squarely within the provisions of Section 12 (1) in that the deceased never paid premiums and never had any interest or power of disposition. I will therefore, allow the appeal with costs and order that the sum of Shs. 44,460/- be exempt from estate duty.” (2) Appeal allowed.