Re Selectmove Ltd

Question 1

when was this judgement

Answer 1

1993

Question 2

which court

Answer 2

court of appeal (civil)

Question 3

facts of the case

Answer 3

The Inland Revenue petitioned for the winding-up of the company, S, on the basis of arrears of tax under the PAYE system. The winding-up order was made and S appealed on the ground that, in October 1991 at a meeting with the Revenue, it was agreed that due to S’s cash flow problems the tax due would be paid in arrears. S therefore contended that the petition debt was disputed and the order should be set aside. The issues were whether the tax collector was entitled to accept the instalment proposal, whether there was consideration for the agreement and whether, if there was no agreement, estoppel prevented the Revenue from claiming the debt.

Question 4

result

Answer 4

S’s appeal dismissed

Question 5

reasoning

Answer 5

• the collector of taxes who met with S did not have actual authority to make such an agreement or otherwise bind the Revenue.
• an agreement to pay the arrears of tax in instalments would not have been enforceable because there was no consideration on the part of the Revenue (RATIO)
• as the tax collector had no authority to make the agreement, neither could he make the promise on which the estoppel argument was based
• as S had failed to pay the instalments it was entirely fair of the Revenue to seek to enforce the debt

Question 6

ratio (MAKE CARD BETTER)

Answer 6

no consideration on part of tax revenue - bound by precedent due to Foakes v Beer

Question 7

how many judges

Answer 7

3

Balcombe , Stuart-Smith and Peter Gibson L.JJ.