The Commissioners chased a liability to tax of over andpound;100,000. The taxpayer’s husband sent a cheque, expressed to be in full and final satisfaction for a much lower sum. It was cashed, and the Commissioners now sought payment of the balance.
Held: The claim succeeded. There had been no meeting of minds such as would operate to reduce the overall sum due. The cheque had been paid in after being separated from the letter containing the terms suggested. A tax payer’s liability to tax was not satisfied when the Revenue encashed a cheque accompanied by a letter saying it had been sent in full and final settlement of a larger sum and was to be encashed only in settlement. The cashing of the cheque gave rise only to a rebuttable presumption of acceptance. That presumption had been rebutted.
Justice Jacob
Times 10-Dec-2001, Gazette 06-Feb-2002, [2001] All ER (D) 434 (Nov)
England and Wales
Income Tax, Contract
Updated: 23 December 2021; Ref: scu.166978