Bath v. British and Malayan Trustees [1969] 2 NSWR 114

Facts: Pl’s mother died in Singapore. She had a will and had appointed D as her executor. D obtained a grant of probate in the Supreme Court of Singapore, on the condition that D would get any foreign assets of the deceased, and remit those assets to Singapore for the purpose of paying Singapore death duty. The 2 beneficiaries were the children of the deceased. The value of the deceased’s assets in Singapore was much less than the death duty which was payable on her estate. The bulk of her assets were in NSW. D applied in the NSWSC for letters of administration of the deceased’s assets. However, Mr Bath commenced proceedings in the NSW Supreme Court that if the court appointed D as administrator of the estate in NSW, that would indirectly lead to the enforcement of foreign revenue laws of Singapore. 

Held: Mr Bath’s argument was upheld. To appoint the foreign executor would lead to the payment of Singapore death duty, and hence this was an indirect enforcement of a foreign revenue law (impermissible under Government of India v Taylor). The foreign executor did not succeed. It did not matter that the executor was a private individual, rather than the Government of Singapore.

Principle: No claim is also maintainable in the forum to recover death or succession duty: Where the enforcement of a claim would lead to the payment of capital gains tax, that outcome is not to be permitted.