66 Ct. Cl. 136 | Ct. Cl. | 1928
delivered the opinion of the court:
Plaintiffs are suing for the recovery of the sum of $3,-959.89 alleged to be an overpayment of the estate tax of Emma J. Sinclair, deceased, on account of the failure of the Commissioner of Internal Kevenue to deduct from the gross estate the amount of inheritance taxes paid to the Commonwealth of Massachusetts.
The question involved is governed by the provisions of section 203 (a) (1) of the revenue act of 1916, 39 Stat. 778, which reads as follows:
“ That for the purpose of the tax the value of the net estate shall be determined—
“(a) In the case of a resident, by deducting from the value of the gross estate—
“(1) Such amounts for funeral expenses, administration expenses, claims against the estate, unpaid mortgages, losses incurred during the settlement of the estate arising from fires, storms, shipwreck, or other casualty, and from theft when such losses are not compensated for by insurance or otherwise, support during the settlement of the estate of those dependent upon the decedent, and such other charges against the estate as are allowed by the laws of the jurisdiction, whether within or without the United States, under which the estate is being administered.”
It is contended by the Government that the Massachusetts inheritance tax is imposed upon the privilege of the legatee or distributee to receive property, and that it is therefore not a charge against- the estate within the meaning of the statute. The prime question is not whether the tax under discussion is a tax upon the right to transmit property or upon the right to receive property. It is simply whether or not this tax is such a charge as falls within the term “ such other charges against the estate, as are allowed by the laws of the jurisdiction under which the estate is being administered.” Section 1 of the- Massachusetts act provides
Section 703 (a) (4) of the recent revenue act of 1928 provides that “ in determining the net income of an heir, devisee, legatee, distributee, or beneficiary * * * or of an estate, for any taxable year, under the revenue act of 1926, or any prior revenue act, the amount of estate, inheritance, legacy, or succession taxes paid or accrued within such taxable year shall be allowed as a deduction * * While this act deals explicitly with the question of the de-ductibility of the classes of tax named therein for Federal