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Issues: Whether deposits made by the deceased with a controlled company constituted a transfer of assets or disposition attracting section 17 of the Estate Duty Act and bringing the relevant amount into the estate passing on death.
Analysis: Money is property within the meaning of the Act. When the deceased deposited money with the controlled company, the amount became part of the company's resources and ceased to remain under the deceased's full control. The arrangement amounted to a disposition within the extended definition in the Controlled Companies Rules, and the interest received by the deceased was a benefit accruing from the company. Once the deposit was made, the deceased stood only as an investor or creditor, and the company owned the money subject to repayment liability.
Conclusion: The deposit amounted to a transfer/disposition in favour of the controlled company and section 17 applied; the amount was includible in the estate, in favour of the Revenue.
Final Conclusion: The reference was answered against the accountable person, and the Tribunal was required to quantify the benefit for inclusion under section 17.
Ratio Decidendi: A deposit of money by a deceased in a controlled company can constitute a disposition and transfer of property where the money becomes part of the company's resources and the deceased retains only the status of a creditor, thereby attracting section 17 of the Estate Duty Act.
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