Kenya Act or statute

Parliament of Kenya

Estate Duty Act

Jurisdiction: Kenya
Structure: 48 provisions
Citation: Cap. 483
Dates: As at 27 Dec 1991

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Dates: As at 27 Dec 1991

Source attribution: Source: Kenya Law

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“This Act may be cited as the Estate Duty Act.”

This Act may be cited as the Estate Duty Act. Defines key terms used in the Act (administrator, child, Commissioner, disposition, estate duty, relative, representation, trust and trustee) and states rules deeming receipt of income and competence to dispose of property for the purposes of the Act. The Minister may appoint an Estate Duty Commissioner, a Deputy and Assistant Estate Duty Commissioners, and such appointments must be notified in the Gazette. Any document purporting to be signed by the Commissioner, a Deputy or an Assistant Estate Duty Commissioner shall, until the contrary is proved, be deemed to have been so signed and may be proved by producing a copy. The Commissioner and any person acting under his authority are not personally liable for acts or omissions done in good faith when exercising powers conferred by this Act, and the Commissioner is not personally liable for costs awarded against him under this Act.

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Part I — PRELIMINARY - 1. Short title

This Act may be cited as the Estate Duty Act.

Section 1

RATES OF DUTY AND AGGREGATION OF PROPERTY - 22. Relief for marginal estates

When practicable, the estate duty payable must be reduced to reflect the next lower rate or, if the lowest rate applies, to the excess above the minimum value exempt from duty.

Section 22

VALUATION - 24. Basis of valuation

If the Commissioner is satisfied that a property's value was reduced because of the deceased's death, the Commissioner must take that depreciation into account when assessing the property's value.

Section 24

PAYMENT OF DUTY - 35. Companies liable to pay duty on shares in certain circumstances

If a Kenyan company records a share transfer in its register made by an administrator who has not obtained probate or letters of administration in Kenya, the company must pay the estate duty payable on those shares that the person liable under section 34…

Section 35

RECOVERY OF DUTY - 47. Estate duty a charge on property

Unpaid estate duty is a first charge on the property for which it is leviable, with an exception for purchasers in good faith for valuable consideration without notice.

Section 47

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Showing 48 of 48 provisions

Provision 38Offence 4Short titleInterpretation

Part I-PRELIMINARY

Part I — PRELIMINARY

§ 1Part I — PRELIMINARY - 1. Short titleShort title

This Act may be cited as the Estate Duty Act.

Section 1. Short title Section This Act may be cited as the Estate Duty Act.

Section 1Verify source

§ 2Part I — PRELIMINARY - 2. InterpretationInterpretation

Defines key terms used in the Act (administrator, child, Commissioner, disposition, estate duty, relative, representation, trust and trustee) and states rules deeming receipt of income and competence to dispose of property for the purposes of the Act.

Section 2. Interpretation Section 2(1) In this Act, except where the context otherwise requires— "administrator" means the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof; "child" includes an adopted child, and, in relation to his mother, an illegitimate child; "Commissioner" means the Estate Duty Commissioner appointed under section 3 of this Act; "disposition" means any act which affects the right to the beneficial enjoyment of property; "estate duty" means the duty imposed by section 7 of this Act; "relative" means a husband, wife, grandparent, parent, child ("an adopted child, and, in relation to his mother, an illegitimate child;") , grandchild, brother, sister, nephew or niece, and includes relatives of the half blood and any person who is married to any of the foregoing, or who has been married to any of the foregoing and has not since remarried; "representation" means probate, letters of administration or any instrument (other than a will) appointing a person the executor, administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") or other representative of a deceased person, or empowering him to administer any of his assets, or authenticating any such appointment; "trust" and "trustee" include respectively a wakf and any person who, whether alone or jointly with another, is in control of any property the subject of a wakf or is in receipt of any income therefrom. Section 2(2) Any reference in this Act to the receipt of income from any property shall be deemed to include the use and enjoyment of that property either alone or jointly with any other person, and income shall be deemed to have been received by a person if it is paid for his benefit or at his direction. Section 2(3) For the purposes of this Act, a person shall be deemed competent to dispose of property if he had such an estate or interest therein or such general power as would, if he were sui juris , enable him to dispose of the property, includ-ing a tenant in tail whether in possession or not; and "general power" includes every power or authority enabling the donee or other holder thereof to appoint or dispose of property as he thinks fit, whether exercisable by instrument inter vivos or by will, or both, but does not include any power exercisable in a fiduciary capacity under a disposition ("any act which affects the right to the beneficial enjoyment of property;") not made by himself, or exercisable as tenant for life under the Settled Land Act, 1882, of the United Kingdom or as mortgagee.

Section 2Verify source

Part II

OFFICERS

§ 3OFFICERS - 3. Appointment ofCommissioner, DeputyCommissionerand Assistant CommissionersProvision

The Minister may appoint an Estate Duty Commissioner, a Deputy and Assistant Estate Duty Commissioners, and such appointments must be notified in the Gazette.

Section 3. Appointment ofCommissioner, DeputyCommissionerand Assistant Commissioners Section 3(1) The Minister may appoint an Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") , who shall be responsible for the administration of this Act and for the collection of all estate duty ("the duty imposed by sectionof this Act;") and interest payable thereunder. Section 3(2) The Minister may appoint a Deputy Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") and such number of Assistant Estate Duty Commissioners as the Minister thinks fit, and the Deputy Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") and every Assistant Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may subject to any general or special limitations which the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may impose, do all or any of the acts which the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") is required or authorized by this Act to do, and, subject as aforesaid, any such act done by the Deputy Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") or an Assistant Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") shall be as valid and effective as if it had been done by the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") . Section 3(3) Any act done by the Deputy Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") or an Assistant Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") shall be deemed to be within the scope of his authority until the contrary is proved. Section 3(4) Every appointment made under this section shall be notified in the Gazette . Section 3(5) The Administrator-General, the Deputy Administrator-General and every Assistant Administrator-General shall be the Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") , the Deputy Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") and an Assistant Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") respectively, until such time as appointments to those offices are made under this section. Section 3(6) The Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may sue and be sued in the name of the Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") . [L.N. 374/1964, Act No. 14 of 1991 , Sch.]

Section 3Verify source

§ 4OFFICERS - 4. Proof of DocumentsProvision

Any document purporting to be signed by the Commissioner, a Deputy or an Assistant Estate Duty Commissioner shall, until the contrary is proved, be deemed to have been so signed and may be proved by producing a copy.

Section 4. Proof of Documents Section Any document purporting to record, contain or be any act, decision, statement, requirement, notice, valuation or assessment of or by the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") and purporting to be signed by him and any document purporting to record, contain or be an act, decision, statement, requirement, notice, valuation or assessment of or by the Deputy or an Assistant Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") and purporting to be signed by him shall, until the contrary is proved, be deemed to have been so signed and to have been made by the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") , or the Deputy or an Assistant Estate Duty Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") , as the case may be, and may be proved by the production of a copy thereof purporting to be so signed.

Section 4Verify source

§ 5OFFICERS - 5. Indemnity of officers.Provision

The Commissioner and any person acting under his authority are not personally liable for acts or omissions done in good faith when exercising powers conferred by this Act, and the Commissioner is not personally liable for costs awarded against him under this Act.

Section 5. Indemnity of officers. Section The Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") shall not, nor shall any person acting under his authority, be personally liable for or in respect of any act or matter done or omitted to be done in good faith in the exercise or purported exercise of the powers conferred by this Act, nor shall he be personally liable for any costs awarded against him under this Act.

Section 5Verify source

§ 6OFFICERS - 6. Official secrecyOffence

Persons with official duties under the Act must keep information about others' property and liabilities secret; unauthorized disclosure is an offence punishable by fine or imprisonment; appointed persons are not required to produce or divulge such documents to court except for specified purposes; the Commissioner may permit certain officers access or share information under reciprocal arrangements where secrecy is declared.

Section 6. Official secrecy Section 6(1) Every person having any official duty under, or being employed in the administration of, this Act shall treat all information, affidavits and other documents relating to the property and liabilities of any person as secret. Section 6(2) Any such person having possession of or control over any such information, affidavit or other document who at any time communicates such information or anything contained in such affidavit or other document to any person otherwise than for the purposes of this Act or of the administration of the estate to which such information or document refers or appertains shall be guilty of an offence and liable to a fine not exceeding three thousand shillings or to imprisonment for a term not exceeding three months, or to both such fine and such imprisonment. Section 6(3) No person appointed under, or employed in carrying out the provisions of, this Act shall be required to produce in court any affidavit or other document, or to divulge or communicate to any court any matter or thing, coming into his possession or under his notice in the performance of his duties under this Act, except as may be necessary for the purpose of carrying into effect the provisions of this Act, for the purpose of administering an estate as aforesaid or in order to bring or assist in the course of a prosecution for an offence under this Act, or an offence committed in relation to estate duty ("the duty imposed by sectionof this Act;") . Section 6(4)(a) the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may permit the Controller and Auditor-General, or any officer authorized by him, or any officer charged with the collection of any tax or duty in Kenya, or the Director of Economics and Statistics, to have access to such records or documents as may be necessary for the performance of his official duties; and every such person shall treat all such records or documents as secret; Section 6(4)(b) the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may give to any officer in a revenue or statistical department of the government of a country with which reciprocal arrangements have been made such information as may be provided for in those arrangements where such officer has made and subscribed a declaration of secrecy in relation to any information coming to his knowledge in the course of his official duties.

Section 6Verify source

Part III-IMPOSITIONOFESTATEDUTY-EXEMPTIONSANDALLOWANCES

Part III — IMPOSITION OF ESTATE DUTY — EXEMPTIONS AND ALLOWANCES

§ 10Part III — IMPOSITION OF ESTATE DUTY — EXEMPTIONS AND ALLOWANCES - 10. Shares of incomeProvision

When an interest that ends on death covers only part of the income from property, estate duty is payable on the proportion of the property corresponding to the part of income the deceased (or other person) was entitled to during the three years before death (or for the lesser period if entitled for less).

Section 10. Shares of income Section Where estate duty ("the duty imposed by sectionof this Act;") is leviable under section 7(1)(b) of this Act, and the interest ceasing on death extended to part only of the income from the property, estate duty ("the duty imposed by sectionof this Act;") shall be payable on the proportion of the property which the amount of the income to which the deceased or other person, as the case may be, was entitled during the three years immediately preceding the death bore to the income from the property during those years or, where the deceased or other person was entitled to the interest for a lesser period than the said three years, on the like proportion during that lesser period.

Section 10Verify source

§ 11Part III — IMPOSITION OF ESTATE DUTY — EXEMPTIONS AND ALLOWANCES - 11. Property enjoyed jointly or according to a discretion.Provision

For property enjoyed jointly or under a discretion, the deceased's share is either (a) the proportion provided by the deceased, or (b) the proportion based on the income the deceased received from the property in the three years immediately before death (with a variant calculation if not entitled for the whole three years).

Section 11. Property enjoyed jointly or according to a discretion. Section 11(a) the proportion of the property which was provided by the deceased; or Section 11(b) the proportion of the property which the amount of income from the property received by the deceased during the three years immediately preceding his death bore to the income from the property during those years or, where the deceased was not entitled to any proportion of the property or was not one of the class of persons in whose favour the discretion was exercisable during the whole of the said three years, the like proportion during the period when he was so entitled or was one of that class, as the case may be,

Section 11Verify source

§ 7Part III — IMPOSITION OF ESTATE DUTY — EXEMPTIONS AND ALLOWANCES - 7. Imposition ofestate duty.Commencement

Section 7 describes what property is to be subject to estate duty, listing types of property and dispositions (including interests ceasing on death, jointly held property, policy proceeds, annuities, dispositions within three years and related effects) and names two persons exempted.

Section 7. Imposition ofestate duty. Section 7(1)(a) all property of which the deceased was at the time of his death competent to dispose; Section 7(1)(b) all property in which the deceased or any other person had an interest ceasing upon the death of the deceased; Section 7(1)(c) all property which immediately before the death was held for the use or enjoyment of two or more persons of whom the deceased was one, either jointly or in accordance with or subject to the exercise of a discretion; Section 7(1)(d) the proceeds of any policy of assurance on the life of the deceased; Section 7(1)(e) any annuity commencing or benefit becoming due on the death of the deceased which was provided by the deceased, either by himself alone (including by the exercise of a general power of appointment by the deceased) or in concert or by arrangement with any other person, other than an annuity or benefit pay-able under any written law to or in respect of a dependant of the deceased as such; Section 7(1)(f) within the three years immediately preceding the death of the deceased and after the commencement of this Act; Section 7(1)(f)(i) within the three years immediately preceding the death of the deceased and after the commencement of this Act; Section 7(1)(f)(ii) at any time, if, within the three years immediately preceding the death of the deceased and after the commencement of this Act, the deceased had any power of appointment, or power of revoca-tion or of declaration of trusts, in relation to the property, or received any income from the property, or received or retained any benefit under any agreement or arrangement, whether or not enforceable by law, made at any time under or in connexion with the disposition ("any act which affects the right to the beneficial enjoyment of property;") , Section 7(1)(f)(A) the property would have been liable to estate duty ("the duty imposed by sectionof this Act;") on the death of the deceased had the deceased died immediately before the dis-position was made; and Section 7(1)(f)(B) the effect of the disposition ("any act which affects the right to the beneficial enjoyment of property;") concerned would, apart from the provisions of this paragraph, have been to diminish the aggregate value of the property liable for estate duty ("the duty imposed by sectionof this Act;") on the death of the deceased had he died immediately after the disposition ("any act which affects the right to the beneficial enjoyment of property;") was made: Section 7(2) For the purposes of subparagraphs (A) and (B) of paragraph (f) of subsection (1) of this section, where any disposition ("any act which affects the right to the beneficial enjoyment of property;") of property was made before the commencement of this Act, any question whether or to what extent the property would have been liable to estate duty ("the duty imposed by sectionof this Act;") on the death of the deceased had the deceased died immediately before the disposition ("any act which affects the right to the beneficial enjoyment of property;") was made, or whether or to what extent the effect of the disposition ("any act which affects the right to the beneficial enjoyment of property;") would, apart from paragraph (f) aforesaid, have been to diminish the aggregate value of the property liable for estate duty ("the duty imposed by sectionof this Act;") on the death had the deceased died immediately after the disposition ("any act which affects the right to the beneficial enjoyment of property;") was made, shall be determined as if this Act had been in operation both immediately before and imme-diately after the disposition ("any act which affects the right to the beneficial enjoyment of property;") was made. Section 7(3) This section shall not apply to His Excellency Mzee Jomo Kenyatta, nor to His Excellency Daniel Toroitich arap Moi. [ Act No. 10 of 1969 , Sch., Act No. 10 of 1981 , Sch.]

Section 7Verify source

§ 8Part III — IMPOSITION OF ESTATE DUTY — EXEMPTIONS AND ALLOWANCES - 8. Property which has changed in characterProvision

If property that would be liable under paragraph (f) of section 7(1) is converted or replaced by a full-value transaction into property not otherwise liable to estate duty, the property representing it at the date of death is liable for estate duty in place of the original property; conversions into money not forming an identifiable part of a trust fund are excepted from that rule.

Section 8. Property which has changed in character Section 8(1) Where any property would be liable for estate duty ("the duty imposed by sectionof this Act;") under paragraph (f) of section 7 (1) of this Act, but since the date of the disposition ("any act which affects the right to the beneficial enjoyment of property;") to which that paragraph refers that property has been converted into or replaced, by any trans-action for full value, by other property of any kind not being property otherwise liable to estate duty ("the duty imposed by sectionof this Act;") on the same death, the property representing at the date of the death of the deceased the property so converted or replaced shall be liable for estate duty ("the duty imposed by sectionof this Act;") in lieu of the property comprised in the disposition ("any act which affects the right to the beneficial enjoyment of property;") : Provided that where the property consisted of or is con-verted into money not forming an identifiable part of a trust fund this subsection shall not apply to any subsequent con-version of that money. Section 8(2) Where any property would be liable for estate duty ("the duty imposed by sectionof this Act;") under paragraph (f) of section 7 (1) of this Act, or under subsection (1) of this section, but since the date of the dis-position, conversion or replacement, as the case may be, that property has been converted into or replaced, by any trans-action other than one for full value, by other property of any kind, or has been disposed of, then on the death of the deceased estate duty ("the duty imposed by sectionof this Act;") shall be levied and paid on the full value, at the date of the transaction, of the property so converted or replaced or disposed of, as the case may be, and Part V of this Act shall apply to the valuation of such property as if references therein to valuation at the date of the death of the deceased were references to valuation at the date of such transaction. Section 8(3)(a) the amount of such duty payable is ascertainable by reference to income or benefits received from, or contributions made to, the property at any time or during any period before the death of the deceased; and Section 8(3)(b) income or benefits were received out of, or contributions were made to, any property other than the property liable for estate duty ("the duty imposed by sectionof this Act;") ; and Section 8(3)(c) such other property has, directly or indirectly, since such time or during such period been converted into or replaced by the property which is liable for estate duty ("the duty imposed by sectionof this Act;") , then, for the purpose of ascertaining the amount of estate duty ("the duty imposed by sectionof this Act;") payable, the property out of which the income or benefits were paid or to which the contributions were made, as the case may be, shall be deemed to be the same as the property liable for the duty.

Section 8Verify source

§ 9Part III — IMPOSITION OF ESTATE DUTY — EXEMPTIONS AND ALLOWANCES - 9. AccrualsProvision

Property that accrues by virtue of ownership is treated as part of the original property.

Section 9. Accruals Section For the purposes of this Act, wherever any property is augmented by the accrual of any further property derived from, attributable to or accruing by virtue of the ownership of the property so augmented, such further property shall be deemed to be part of the property so augmented.

Section 9Verify source

Part IV

RATES OF DUTY AND AGGREGATION OF PROPERTY

§ 21RATES OF DUTY AND AGGREGATION OF PROPERTY - 21. Rates of dutyProvision

The rates of estate duty are the rates set out in the First Schedule to this Act.

Section 21. Rates of duty Section The rates of estate duty ("the duty imposed by sectionof this Act;") shall be those set out in the First Schedule to this Act.

Section 21Verify source

§ 22RATES OF DUTY AND AGGREGATION OF PROPERTY - 22. Relief for marginal estatesProvision

When practicable, the estate duty payable must be reduced to reflect the next lower rate or, if the lowest rate applies, to the excess above the minimum value exempt from duty.

Section 22. Relief for marginal estates Section 22(1) The amount of estate duty ("the duty imposed by sectionof this Act;") payable shall, where practicable, be reduced so as not to exceed the highest amount of duty which would be payable at the rate of duty next lower than that applicable, with the addition of the amount by which the value of the estate exceeds the value on which the highest amount of duty is payable at the lower rate: Provided that, where the rate of duty applicable is the lowest rate of duty, the amount of estate duty ("the duty imposed by sectionof this Act;") payable shall, where practicable, be reduced to the amount by which the value of the estate exceeds the minimum value below which an estate is not liable to duty. Section 22(2) The benefit of the relief afforded by this section shall be apportioned between the properties liable for the duty.

Section 22Verify source

Part IX

MISCELLANEOUS

§ 48MISCELLANEOUS - 48. Presumption as to domicileProvision

If a person was ordinarily resident in Kenya immediately before death and there is no proof of a domicile elsewhere, they are presumed to have died domiciled in Kenya for the purposes of this Act.

Section 48. Presumption as to domicile Section A person who immediately before his death was ordinarily resident in Kenya shall for the purposes of this Act, in the absence of proof of any domicile elsewhere, be presumed to have died domiciled in Kenya.

Section 48Verify source

§ 49MISCELLANEOUS - 49. Representation not to be granted without certificate as to dutyProvision

Courts or authorities must not confirm grants of representation unless a certificate from the Estate Duty Commissioner showing duty has been paid, secured, or is not payable is produced; exceptions include applications by the Public Trustee and cases under section 72, and a certificate of discharge under section 50 allows limited grants for specified property.

Section 49. Representation not to be granted without certificate as to duty Section 49(1) Save in the case of an application by the Public Trustee, and save as provided in section 72 of Law of Succession Act, 1971, no grant of representation ("probate, letters of administration or any instrument (other than a will) appointing a person the executor,administrator or other representative of a deceased person, or empowering him to administer any of his assets, or authenticating any such appointment;") shall be confirmed by any court or authority unless the certificate of the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") is produced to such court or authority to the effect that he is satisfied either that the requirements of this Act in regard to the payment of duty have been or will be complied with or that no estate duty ("the duty imposed by sectionof this Act;") is payable: Provided that, where the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") has given a certificate of discharge under section 50 of this Act in respect of any property, nothing in this subsection shall prevent a grant of representation being made which is limited to the property specified in that certificate. Section 49(2)(a) the estate duty ("the duty imposed by sectionof this Act;") and interest has been paid or security has been given for it, and the affidavit has been properly completed; or Section 49(2)(b) he has had sufficient information to enable him to determine, and has determined, that no duty is payable, but shall not otherwise withhold or delay the issue of his certificate.

Section 49Verify source

§ 50MISCELLANEOUS - 50. Certificate of dischargeProvision

The Estate Duty Commissioner must, if satisfied that estate duty has been or will be paid and on request, issue a certificate discharging specified property from further estate duty; such a certificate does not discharge property if there was fraud or failure to disclose material facts, but it protects a good-faith purchaser for value without notice.

Section 50. Certificate of discharge Section 50(1) The Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") , on being satisfied that in respect of a particular death the full estate duty ("the duty imposed by sectionof this Act;") has been or will be paid on any particular property, shall, on request, give a certificate discharging the property specified in the certificate from any further liability to estate duty ("the duty imposed by sectionof this Act;") . Section 50(2) A certificate of the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") under this section shall not discharge any property from liability to estate duty ("the duty imposed by sectionof this Act;") in case of fraud or failure to disclose material facts: Provided that a certificate purporting to discharge any property shall exonerate from liability to estate duty ("the duty imposed by sectionof this Act;") a purchaser thereof in good faith, for valuable consideration and without notice of the fraud or failure.

Section 50Verify source

§ 51MISCELLANEOUS - 51. Service of noticesProvision

A notice required under this Act is sufficiently served if it is left at the person's last known place of abode or business in Kenya, or if it is sent by registered post addressed to him by name at his last known postal address in Kenya and is not returned as undelivered by the Post Office.

Section 51. Service of notices Section Any notice required to be served under this Act shall be sufficiently served if it is left at the last known place of abode or business in Kenya of the person to be served, or if it is sent by registered post addressed to him by name at his last known postal address in Kenya and is not returned as undelivered by the Post Office.

Section 51Verify source

§ 52MISCELLANEOUS - 52. Arrangements for relief from doubleestate dutyProvision

The Minister may, by order, declare that specified arrangements with another country for relief from double taxation in relation to estate duty have been made; when so declared the arrangements shall have effect for providing relief, determining situs of property for estate duty, or exchanging information; any such order must be laid before the National Assembly as soon as practicable.

Section 52. Arrangements for relief from doubleestate duty Section 52(1) If the Minister by order declares that arrangements specified in the order have been made with the government of some country with a view to affording relief from double taxation in relation to estate duty ("the duty imposed by sectionof this Act;") payable under the laws of Kenya and any duty of a similar character imposed under the laws of that country, and that it is expedient that those arrangements should have effect, the arrangements shall, notwithstanding anything in this Act, have effect so far as they provide for relief from estate duty ("the duty imposed by sectionof this Act;") , or for determining the place where any property is to be treated as being situated for the purposes of estate duty ("the duty imposed by sectionof this Act;") , or for the exchange of information regarding the liability of any person or property for such duties. Section 52(2) Any arrangements to which effect is given under this section may include provision for relief from duty in the case of deaths occurring before the making of the arrangements and provision as to property which is not itself subject to double duty, and the provisions of this section shall have effect accordingly. Section 52(3) Any order made under this section shall as soon as practicable be laid before the National Assembly.

Section 52Verify source

§ 53MISCELLANEOUS - 53. Certified true copies of affidavitsProvision

The Commissioner (the Estate Duty Commissioner) must provide certified copies of estate duty affidavits, corrective affidavits or statements and assessments to the administrator or the administrator's authorized representative on request and on payment of the prescribed fee.

Section 53. Certified true copies of affidavits Section The Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") shall on request provide certified copies of estate duty ("the duty imposed by sectionof this Act;") affidavits, corrective affidavits or statements and assessments to the administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") or his duly authorized representative, on payment of the prescribed fee.

Section 53Verify source

§ 54MISCELLANEOUS - 54. Inventory and accounts to be deliveredProvision

The administrator of an estate must deliver to the Estate Duty Commissioner a copy of the inventory and all accounts required under specified earlier Acts.

Section 54. Inventory and accounts to be delivered Section The administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") of an estate shall deliver to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") a copy of the inventory and of all accounts required to be made under section 98 of the Probate and Administration Act, 1881 (No. 5 of 1881) and section 277 of the Indian Succession Act, 1865 (No. 10 of 1865).

Section 54Verify source

§ 55MISCELLANEOUS - 55. Power of entryOffence

A person authorised in writing by the Commissioner may enter and inspect premises believed to form part of a deceased's estate at any reasonable time; refusing such entry is an offence punishable by a fine not exceeding two thousand shillings.

Section 55. Power of entry Section 55(1) Any person authorized by the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") in writing in that behalf may, for the purposes of inspecting any premises reasonably believed to form part of a deceased’s estate, at any reasonable time enter and inspect the premises. Section 55(2) Any person who refuses or fails to allow entry to a person requiring entry under subsection (1) of this section shall be guilty of an offence and liable to a fine not exceeding two thousand shillings.

Section 55Verify source

§ 56MISCELLANEOUS - 56. RulesProvision

Allows anything to be prescribed under this Act.

Section 56. Rules Section anything which may be prescribed under this Act;

Section 56Verify source

§ 57MISCELLANEOUS - 57. Limitation of operation ofCap. 257(1948)Provision

No estate duty under the Estate Duty Act shall be levied on property passing on the death of any person dying on or after the 29th April, 1959.

Section 57. Limitation of operation ofCap. 257(1948) Section No estate duty ("the duty imposed by sectionof this Act;") within the meaning of the Estate Duty Act shall be levied under that Act on any property which passes on the death of any person dying on or after the 29 th April, 1959.

Section 57Verify source

§ 58MISCELLANEOUS - 58. Repeal ofAct 43 of 1959Repeal

The Estate Duty (Abolition) Act, 1959, is repealed.

Section 58. Repeal ofAct 43 of 1959 Section The Estate Duty (Abolition) Act, 1959, is repealed

Section 58Verify source

Part V

VALUATION

§ 24VALUATION - 24. Basis of valuationProvision

If the Commissioner is satisfied that a property's value was reduced because of the deceased's death, the Commissioner must take that depreciation into account when assessing the property's value.

Section 24. Basis of valuation Section 24(1) The value of any property for the purpose of assessing estate duty ("the duty imposed by sectionof this Act;") shall, except as otherwise provided in this Part, be the price which in the opinion of the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") it might reasonably have been expected to realize in a sale between a willing buyer and a willing seller, as a whole or by lots, or generally in whatever manner would have been most advantageous, at the date of the death of the deceased, and in the case of immovable property there may be taken into account the rent which the property might reasonably have been expected to produce: Provided that, where a person accountable for the estate duty ("the duty imposed by sectionof this Act;") payable on an interest in expectancy elects under section 38 of this Act to pay the duty at the date when the interest is disposed of or falls into possession, the value shall for the purpose of ascertaining the rate and amount of duty payable on that interest be deemed to be the value at the date of the disposition or the date when the interest falls into possession, as the case may be. Section 24(2) Where the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") is satisfied that the value of any property has been depreciated by reason of the death of the deceased, the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") shall take such depreciation into account in assessing the value of the property.

Section 24Verify source

§ 25VALUATION - 25. Ascertainment of valueProvision

The Commissioner (Estate Duty Commissioner) may determine the value of any property for assessing estate duty in whatever manner and by whatever means he deems fit, subject to this Part.

Section 25. Ascertainment of value Section Subject to the provisions of this Part, the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may ascertain the value of any property for the purpose of assessing estate duty ("the duty imposed by sectionof this Act;") in such manner and by such means as he may think fit.

Section 25Verify source

§ 26VALUATION - 26. Valuation of shares and debentures in certain companiesProvision

Valuation of shares and debentures in certain companies

Section 26. Valuation of shares and debentures in certain companies

Section 26Verify source

§ 27VALUATION - 27. Establishment of Valuation Appeals TribunalProvision

Establishes a Valuation Appeals Tribunal to hear and determine appeals under section 28 of the Act.

Section 27. Establishment of Valuation Appeals Tribunal Section 27(1) There is hereby established a Valuation Appeals Tribunal for the purpose of hearing and determining appeals under section 28 of this Act. Section 27(2) The Second Schedule to this Act shall have effect concerning the constitution and proceedings of, and otherwise in relation to the Valuation Appeals Tribunal.

Section 27Verify source

§ 28VALUATION - 28. Objections to and appeals against valuationSubstitution

A person aggrieved by a valuation may, within one month after service of the assessment notice, give written notice of objections to the Commissioner and may appeal to the Valuation Appeals Tribunal within one month of refusal (or longer if allowed by the Tribunal).

Section 28. Objections to and appeals against valuation Section 28(1) Any person who is aggrieved by the value placed on any property by the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") for the purpose of assessing estate duty ("the duty imposed by sectionof this Act;") may, within one month after notice of the assessment has been served on the person accountable, give notice in writing to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") specifying his objections to the valuation and his reasons for those objections, and, if any such objection is not allowed by the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") , may, within one month of receiving notice of his refusal to allow the objection or such further period as the Tribunal may allow, appeal to the Valuation Appeals Tribunal against the valuation. Section 28(2) No appeal to the Valuation Appeals Tribunal shall be entertained unless the duty assessed and interest thereon has been paid to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") or security for the payment thereof given to the satisfaction of the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") . Section 28(3) The Valuation Appeals Tribunal may on appeal confirm the valuation of the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") or substitute another valuation, whether greater or less, and the decision of the Tribunal shall be final and conclusive.

Section 28Verify source

Part VI

ACCOUNTABILITY AND ASSESSMENT

§ 29ACCOUNTABILITY AND ASSESSMENT - 29. Duty to render accountOffence

Administrators and persons holding estate property must deliver prescribed affidavits specifying estate property and values to the Estate Duty Commissioner; affidavits must be delivered within six months (or further period allowed by the Commissioner); corrective affidavits must be delivered if earlier affidavits are incorrect, with the Commissioner able to accept unsworn statements; the Public Trustee delivers a signed statement instead of an affidavit.

Section 29. Duty to render account Section 29(1) It shall be the duty of every administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") to deliver to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") an affidavit in the prescribed form specifying to the best of his knowledge and belief all the property liable to estate duty ("the duty imposed by sectionof this Act;") on the death of the deceased and the value of all such property at the date of death, and together with such affidavit a certified true copy of any will or testamentary document made by the deceased or, in the case of an oral will, a written statement thereof: Provided that, where the gross value of all the property to which section 7(1) of this Act refers does not exceed twenty thousand shillings, the administrator need not deliver an affidavit as aforesaid, unless the Commissioner otherwise requires. Section 29(2) Where any person has in his possession, power or control, whether beneficially or as a trustee, any property liable to estate duty ("the duty imposed by sectionof this Act;") , it shall be the duty of that person to deliver to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") an affidavit in the prescribed form specifying the property and the value thereof at the date of death: Provided that no such affidavit need be delivered, unless expressly required by the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") , where the property has been included in an affidavit delivered to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") in accordance with subsection (1) of this section. Section 29(3) The affidavits required by subsections (1) and (2) of this section shall be delivered to the Commissioner within six months of the death of the deceased or such further period as the Commissioner may allow. Section 29(4) If any person required by this section to deliver an affidavit to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") becomes aware that any affidavit so delivered was incorrect or incomplete in any particular, he shall as soon as practicable deliver to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") a corrective affidavit: Provided that the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may accept an unsworn statement in lieu of a corrective affidavit. Section 29(5) Notwithstanding the foregoing provisions of this section, the Public Trustee shall not be required to render any affidavit, but shall, where he is administering any property, deliver to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") a signed statement in all other respects in the prescribed form. Section 29(6)(a) being under a duty, or being required, to deliver an affidavit or statement under this section, fails to deliver it within the time limited therefore, shall be guilty of an offence and liable to a fine not exceeding five thousand shillings or, if in the opinion of the court the offence was committed with a view to hindering or preventing the collection or evading the payment of estate duty ("the duty imposed by sectionof this Act;") or with a fraudulent intent, to a fine not exceeding ten thousand shillings or to imprisonment for a term not exceeding one year, or to both such fine and such imprisonment; and Section 29(6)(b) in any affidavit or statement delivered under this section, knowingly gives any false information in any material particular or wilfully omits any property liable to estate duty ("the duty imposed by sectionof this Act;") , shall be guilty of an offence and liable to a fine not exceeding twenty thousand shillings or to imprisonment for a term not exceeding two years, or to both such fine and such imprisonment.

Section 29Verify source

§ 30ACCOUNTABILITY AND ASSESSMENT - 30. Power to require informationOffence

The Commissioner may require any person to provide statements, produce documents, or attend and be examined on oath about property liable to estate duty; failures and providing false or incomplete information are offences with specified fines and possible imprisonment.

Section 30. Power to require information Section 30(1)(a) to deliver to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") a statement giving to the best of his knowledge and belief answers to any questions which may be put to him by the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") regarding the property liable to estate duty ("the duty imposed by sectionof this Act;") on the death of the deceased, and any such statement shall, if the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") so requires, be made on oath; Section 30(1)(b) to produce to and allow the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") or any person authorized in writing by him to inspect and take copies of any such document as aforesaid; and Section 30(1)(c) to attend before the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") , and to be examined by him on oath as to any matter respecting any property liable to estate duty ("the duty imposed by sectionof this Act;") on the death of the deceased. Section 30(2) Where any question arises under section 24 , section 25 or section 26 of this Act concerning the value of shares in any company, the Commissioner may exercise the powers conferred by subsection (1) of this section as if every person who is or has been at any material time, or who has at any material time exercised the powers of, a director, manager, secretary, liquidator or auditor of the company were a person accountable for duty. Section 30(3)(a) Any person who fails to comply with any requirement of the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") made under this section within the time limited for compliance therewith shall be guilty of an offence and liable to a fine not exceeding five thousand shillings or, if in the opinion of the court the offence was committed with a view to hindering or preventing the collection or evading the payment of estate duty ("the duty imposed by sectionof this Act;") or with a fraudulent intent, to a fine not exceeding ten thousand shillings or to imprisonment for a term not exceeding one year, or to both such fine and such imprisonment. Section 30(3)(b) Any person who, in purported compliance with a requirement of the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") made under this section, knowingly gives any false or incomplete information in any material particular shall be guilty of an offence and liable to a line not exceeding twenty thousand shillings or to imprisonment for a term not exceeding two years, or to both such fine and such imprisonment.

Section 30Verify source

§ 31ACCOUNTABILITY AND ASSESSMENT - 31. Assessment of dutyAmendment

The Commissioner must assess estate duty upon receipt of an estate duty affidavit or statement and must serve notice of the assessment as soon as practicable; the Commissioner also has the power to revoke or amend assessments based on fresh information or if previous valuations were erroneous.

Section 31. Assessment of duty Section 31(1) Upon receipt of an estate duty ("the duty imposed by sectionof this Act;") affidavit or corrective affidavit or statement, the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") shall, as soon as practicable, assess the duty payable in connexion therewith, and shall serve notice of the assessment on the person who delivered the affidavit or statement or on any person whom that person may nominate in that behalf. Section 31(2) Subject to the provisions of section 50 of this Act, the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") shall have power at any time and from time to time to revoke or amend any assessment in the light of any fresh information he may receive or where he is satisfied that any valuation or assessment previously made was erroneous.

Section 31Verify source

§ 32ACCOUNTABILITY AND ASSESSMENT - 32. Appeals against decisions other than on valuationProvision

Aggrieved persons may, within prescribed time limits, give written notice of objections to the Estate Duty Commissioner and, if the objection is refused, may appeal to the Supreme Court; the Supreme Court may extend time for appealing and may reverse or alter decisions and order costs.

Section 32. Appeals against decisions other than on valuation Section 32(1) Any person who is aggrieved by any decision of the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") , other than a decision as to the value of any property, may, within one month after notice of the decision has been served on the person accountable, give notice in writing to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") specifying his objections to the decision and his reasons for such objections, and if any such objection is not allowed by the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may, within one month of receiving notice of his refusal to allow the objection, appeal to the Supreme Court against the decision. Section 32(2) No appeal to the Supreme Court against a decision shall be entertained unless the duty assessed and the interest thereon are paid into Court or security for the payment thereof is given to the satisfaction of the Court. Section 32(3) No objection to any decision shall be entertained on appeal unless the grounds for such objection have been notified to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") under subsection (1) of this section or the failure to do so is accounted for to the satisfaction of the Supreme Court. Section 32(4) The Supreme Court shall have power to extend the time for appealing under this section, notwithstanding that the time prescribed by subsection (1) of this section has expired. Section 32(5) The Supreme Court may, on an appeal, reverse or alter a decision in such manner as the circumstances require, and may make an order as to costs.

Section 32Verify source

§ 33ACCOUNTABILITY AND ASSESSMENT - 33. Special provisions for trusteesProvision

Trustees who wish to distribute trust property but know it may incur estate duty may apply to the Commissioner by affidavit for a certificate of maximum liability; the Commissioner may issue a certificate estimating an amount to cover estate duty, and if trustees retain and invest that amount in authorized investments they will not be liable for estate duty beyond the value of those investments.

Section 33. Special provisions for trustees Section 33(1) Trustees who are desirous of distributing the trust property but who are aware that by reason of a past disposition ("any act which affects the right to the beneficial enjoyment of property;") the trust property may become liable for estate duty ("the duty imposed by sectionof this Act;") on a future death may apply to the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") by affidavit in the prescribed form for a certificate of maximum liability. Section 33(2) Every such affidavit shall specify the trust property and all other property likely to attract estate duty ("the duty imposed by sectionof this Act;") on the death and the present value of all such trust and other property. Section 33(3) If the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") is satisfied as to the truth of the facts averred, he may issue a certificate specifying an amount which he estimates to be sufficient to pay any estate duty ("the duty imposed by sectionof this Act;") payable on the death in respect of the property specified, and if the trustees retain and invest that amount in investments for the time being authorized by law for the investment of trust funds they shall not be liable as trustees for any estate duty ("the duty imposed by sectionof this Act;") in respect of that property in connexion with the death when it occurs beyond the value of the investments so held.

Section 33Verify source

Part VII

PAYMENT OF DUTY

§ 34PAYMENT OF DUTY - 34. Liability for paymentProvision

Section 34 allocates liability for payment of estate duty among administrators, trustees, persons entitled to property, and defines limits and reimbursement rules for administrators and trustees.

Section 34. Liability for payment Section 34(1)(a) as regards property of which the deceased was competent to dispose, by the administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") ; Section 34(1)(b) as regards trust property, by the trustees for the time being, or if the trust has terminated the last trustees, of the property; Section 34(1)(c) as regards estate duty ("the duty imposed by sectionof this Act;") payable under section 8 of this Act, by the person who was entitled to the property immediately before the transaction or disposition referred to therein or the administrator of his estate; and Section 34(1)(d) in default of payment by the person liable under the foregoing paragraphs of this subsection, and as regards all other property, by the persons entitled to the property. Section 34(2) No administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") or trustee shall be liable for any estate duty ("the duty imposed by sectionof this Act;") in excess of the value of the assets which he has received as such administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") or trustee or might but for his own neglect or default have so received. Section 34(3)(a) an administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") or trustee who distributes the estate of the deceased or the trust fund, as the case may be, without paying the estate duty ("the duty imposed by sectionof this Act;") payable by him under this section shall, in default of payment by the persons entitled to the property, be personally liable for payment of the duty; and Section 34(3)(b) an administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") of an estate of a person liable to pay estate duty ("the duty imposed by sectionof this Act;") under subsection (1)(c) of this section who distributes that estate without paying the estate duty payable under section 8 of this Act shall be personally liable for payment of the duty. Section 34(4) Where an administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") or trustee pays any estate duty ("the duty imposed by sectionof this Act;") under subsection (1) of this section, the estate duty shall, subject to the provisions of the will of the deceased or of the trust deed, as the case may be, be borne by the persons entitled on the death of the deceased to the property in respect of which duty has been so paid in proportion to the value of their respective interests therein, and the administrator in distributing the estate of the deceased and the trustee in distributing the trust property shall make such deductions, adjustments and payments as may be necessary for that purpose. Section 34(5) For the purposes of this section, “ trust property” means property vested in trustees, or property the subject of a wakf, or property which has ceased to be vested in trustees as a result of any disposition ("any act which affects the right to the beneficial enjoyment of property;") .

Section 34Verify source

§ 35PAYMENT OF DUTY - 35. Companies liable to pay duty on shares in certain circumstancesProvision

Section 35. Companies liable to pay duty on shares in certain circumstances Section If in any register of members kept in Kenya a company registers any transfer of its shares by an administrator ("the executor of the will, or the administrator of the estate, of a deceased person, and includes any person who takes possession of or intermeddles with the property of a deceased person or any part thereof;") who has not obtained a grant of representation ("probate, letters of administration or any instrument (other than a will) appointing a person the executor,administrator or other representative of a deceased person, or empowering him to administer any of his assets, or authenticating any such appointment;") in Kenya, the company shall be liable to pay the estate duty ("the duty imposed by sectionof this Act;") leviable in respect of those shares in default of payment, by the person liable therefore under section 34 of this Act

Section 35Verify source

§ 36PAYMENT OF DUTY - 36. Time for paymentProvision

Estate duty must be paid within twenty-eight days after a notice of assessment is served, subject to sections 38, 39 and 40.

Section 36. Time for payment Section Subject to the provisions of sections 38 , 39 and 40 of this Act, estate duty shall be paid within twenty-eight days of the service of a notice of assessment under section 31(1) of this Act.

Section 36Verify source

§ 37PAYMENT OF DUTY - 37. Interest on dutyProvision

Simple interest is payable on estate duty: 6% per annum from six months after the date of death until delivery of the affidavit or statement used for assessment; if duty remains unpaid 28 days after notice of assessment, interest on the unpaid amount runs at 9% per annum from that time.

Section 37. Interest on duty Section 37(1) Subject to the provisions of sections 38 , 39 and 40 of this Act, simple interest at the rate of six per cent per annum shall be payable upon all estate duty from six months after the date of the death of the deceased to the date of delivery of the affidavit, corrective affidavit or written statement upon which the assessment is based. Section 37(2) Where the whole or any part of the duty assessed remains unpaid at the end of twenty-eight days after the service of the notice of assessment in respect of that duty, interest shall be payable upon the unpaid duty from that time at the rate of nine per cent per annum. Section 37(3) Interest shall be payable and recoverable in the same manner as if it formed part of the estate duty ("the duty imposed by sectionof this Act;") .

Section 37Verify source

§ 38PAYMENT OF DUTY - 38. Right to defer payment of duty on interests in expectancyProvision

A person liable for estate duty may postpone (defer) paying duty on an interest in expectancy until the interest is disposed of or falls into possession, whichever happens first.

Section 38. Right to defer payment of duty on interests in expectancy Section Where an estate includes an interest in expectancy, the payment of estate duty ("the duty imposed by sectionof this Act;") in respect of that interest may, at the option of the person liable for the duty, be postponed until the interest is disposed of or falls into possession, whichever first happens, and where payment is so postponed interest at the rate of nine per cent per annum shall be payable thereon from twenty-eight days after the date of the disposition ("any act which affects the right to the beneficial enjoyment of property;") or the date the interest in expectancy falls into possession, as the case may be until the date of payment.

Section 38Verify source

§ 39PAYMENT OF DUTY - 39. Right to pay duty by instalments in certain casesProvision

Allows the person accountable to opt to pay estate duty in equal annual instalments with interest, specifies timing for instalments and higher interest on default; Commissioner may require security.

Section 39. Right to pay duty by instalments in certain cases Section 39(1) The estate duty ("the duty imposed by sectionof this Act;") payable in respect of any land or of any business, not being a business carried on by a company, or any interest therein, or in respect of any shares in a company valued in accordance with section 26 of this Act, or in respect of any annuity commencing on the death of the deceased, may, at the option of the person accountable, be paid by live equal annual instalments with interest at the rate of six per cent per annum, the first instalment being payable within twenty-eight days of the date of the notice of assessment and the remaining instalments on the anniversary of such date: Provided that, if any instalment is not paid by the due date, the whole of the duty remaining unpaid and the interest thereon shall forthwith become due and payable, and there after the unpaid duty shall bear interest at the rate of nine per cent per annum. Section 39(2) Where the estate duty ("the duty imposed by sectionof this Act;") in respect of any property is being paid by instalments, the whole amount of the duty for the time being unpaid and the interest thereon may be paid at any time. Section 39(3) Where the estate duty ("the duty imposed by sectionof this Act;") in respect of any property is being paid by instalments, the whole amount of the duty for the time being unpaid and the interest thereon shall become due and payable immediately upon the completion of any sale of the property, and thereafter the unpaid duty shall bear interest at the rate of nine per cent per annum. Section 39(4) The Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may require to be furnished with security for the due payment of instalments payable under this section.

Section 39Verify source

§ 40PAYMENT OF DUTY - 40. Power to extend time, for payment in certain casesProvision

The Estate Duty Commissioner may allow postponement of payment of estate duty if satisfied that it cannot be raised at once without excessive sacrifice, subject to interest and terms.

Section 40. Power to extend time, for payment in certain cases Section Where the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") is satisfied that any estate duty ("the duty imposed by sectionof this Act;") cannot without excessive sacrifice be raised at once, he may allow payment to be postponed for such period and to such extent, on payment of such interest not exceeding nine per cent per annum or the rate yielded by the property concerned, whichever is the greater, and on such terms generally, as the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may think fit.

Section 40Verify source

§ 41PAYMENT OF DUTY - 41. Power to accept properly in lieu of dutyProvision

The Minister may, if satisfied it is in the public interest, authorize the Commissioner to accept part of property liable to estate duty in lieu of estate duty.

Section 41. Power to accept properly in lieu of duty Section The Minister may, if he is satisfied that it is in the public interest, authorize the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") to accept any part of the property liable to estate duty ("the duty imposed by sectionof this Act;") on a death in lieu of the estate duty ("the duty imposed by sectionof this Act;") or any part thereof or interest thereon, and any such property shall be transferred to the Government.

Section 41Verify source

§ 42PAYMENT OF DUTY - 42. Power to remit trivial amountsProvision

The Commissioner may remit small amounts of estate duty or interest when it appears too small to justify the expense and trouble of calculation and collection.

Section 42. Power to remit trivial amounts Section The Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may, if he thinks fit, remit any estate duty ("the duty imposed by sectionof this Act;") or any interest thereon when the amount appears to him to be so small as not to justify the expense and trouble of calculation and collection.

Section 42Verify source

§ 43PAYMENT OF DUTY - 43. Refund of dulyProvision

If the Estate Duty Commissioner is satisfied that someone has overpaid estate duty, the Commissioner must refund the amount overpaid, except that refunds claimed after three years from payment require the Minister's direction.

Section 43. Refund of duly Section If it is proved to the satisfaction of the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") that any person has paid more estate duty ("the duty imposed by sectionof this Act;") than that for which he was liable, the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") shall refund the amount overpaid: Provided that, where a refund is claimed after the expiry of three years from the date the excess was paid, such refund shall not be made unless the Minister so directs.

Section 43Verify source

Part VIII

RECOVERY OF DUTY

§ 44RECOVERY OF DUTY - 44. Unpaid duty a debt to GovernmentProvision

If estate duty is not paid within twenty-eight days after service of a notice of assessment (subject to sections 38, 39 and 40), the Government may recover it by civil suit from the person liable as a debt due to the Government.

Section 44. Unpaid duty a debt to Government Section Subject to the provisions of sections 38 , 39 and 40 of this Act, all estate duty not paid within twenty-eight days of the service of a notice of assessment shall be recoverable from the person liable by civil suit as a debt due to the Government.

Section 44Verify source

§ 45RECOVERY OF DUTY - 45. Recovery of dutyProvision

The Estate Duty Commissioner may apply ex parte for a summary order for unpaid estate duty; the court must make an order on production of the assessment and proof of service; a written statement by the Commissioner is sufficient evidence; the person served may apply to discharge the order within twenty eight days.

Section 45. Recovery of duty Section 45(1) The Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") may apply ex parte to a court, without instituting a suit, for a summary order for the payment of any estate duty ("the duty imposed by sectionof this Act;") due and unpaid, and on production of the assessment and on proof of service of the notice of assessment on the person liable the court shall make an order for payment of the unpaid duty and the costs of the application out of the estate of the deceased or other property in respect of which the duty is payable, and may direct the immediate execution of the order. Section 45(2) A statement in writing by the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") shall be sufficient evidence of the amount of unpaid duty. Section 45(3) The order shall, as soon as practicable, be served on the person accountable, who may at any time within twenty eight days after such service apply to the court for the order to be discharged, and the order may be discharged on any ground which would be a valid defence to proceedings for recovery of the duty. Section 45(4) Property liable to attachment and sale in execution of an order made under this section may be seized immediately after the order is made, but shall not be sold until the time for applying for discharge of the order has elapsed and any application for such a discharge has been determined.

Section 45Verify source

§ 46RECOVERY OF DUTY - 46. Stay of execution pending appealProvision

The court may grant a stay of execution in proceedings to recover estate duty or to discharge an order for payment of estate duty when an appeal on valuation or against the Commissioner’s decision is pending or the appeal time has not yet expired, and may impose terms including payment of interest under section 40.

Section 46. Stay of execution pending appeal Section Where, in any proceedings for the recovery of estate duty ("the duty imposed by sectionof this Act;") or for the discharge of an order for payment of estate duty ("the duty imposed by sectionof this Act;") , it appears that an appeal as to the valuation of any property, or against the decision of the Commissioner ("the Estate Duty Commissioner appointed under sectionof this Act;") , is pending or that the time for so appealing has not yet elapsed, the court may if it thinks fit grant a stay of execution for such period and on such terms, including the payment of such interest as is provided for in section 40 of this Act, as it may think just.

Section 46Verify source

§ 47RECOVERY OF DUTY - 47. Estate duty a charge on propertyProvision

Unpaid estate duty is a first charge on the property for which it is leviable, with an exception for purchasers in good faith for valuable consideration without notice.

Section 47. Estate duty a charge on property Section 47(1) All estate duty ("the duty imposed by sectionof this Act;") which is leviable and unpaid shall be a first charge on the property in respect of which it is leviable, except as against a purchaser thereof in good faith, for valuable consideration and without notice. Section 47(2)(a) to appoint a receiver of the property and of the rents, profits and income thereof; or Section 47(2)(b) to order the sale of the property.

Section 47Verify source

Legislative relationships

4 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

1 instrument

Act. Section 2. Interpretation Section 2(1) In this Act
Section 2

G–M

1 instrument

Law of Succession Act, 1971
Section 49

N–S

2 instruments

ofAct 43 of 1959 The Estate Duty (Abolition) Act, 1959
Section 58
Probate and Administration Act, 1881
Section 54

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