I move:—
(1) That for the purposes of the construction and application of Section 26 of the Finance Act, 1931 (No. 31 of 1931), as amended by the Act giving statutory effect to this Resolution, in and to the case of a person (in this paragraph referred to as the deceased) dying on or after the date of the passing of the Act giving statutory effect to this Resolution, property which is, by virtue of sub-section (1) of the said Section 26 as so amended, deemed for the purposes of estate duty to pass on the death of the deceased shall include property complying with all the following conditions, that is to say:—
(a) the deceased had an estate or interest in such property limited to cease at his death, and
(b) another person had an estate or interest in such property limited to arise or to come into possession on the death of the deceased and to cease on the death of such other person or on the happening of any other event, and
(c) the said estate or interest of the deceased and the said estate or interest of such other person were transferred (whether before or after the passing of the Act giving statutory effect to this Resolution, and whether directly or indirectly, and whether by one or more transactions, and whether in respect of the whole or of part only of such property) by the deceased and such other person to or for the benefit of a company to which the said Section 26 as so amended applies, and
(d) none of the several paragraphs (a), (b), (c), and (d) of sub-section (1) of the said Section 26 as so amended applies in the circumstances of the case.
(2) That so much of sub-section (4) of Section 26 of the Finance Act, 1931, as requires the duty or any part thereof to be repaid by the company to the executor shall not apply where property is, by virtue only of the extension of the said Section 26 indicated in the foregoing paragraph of this Resolution, deemed for the purposes of estate duty to pass on the death.
These Resolutions are designed to prevent the legal evasion of estate duty in certain cases in which a family arrangement has been effected by the transfer of estates to a private company. Once again, in a recent case there were indications that there was a loophole in the existing legislation and this Resolution is designed to close that.
