Inland Revenue Commissioners v Nash (2003)


Claim by the Inland Revenue seeking to recover from Nash tax debts incurred by Alpine (Specialist Services) Ltd ('company 2'), which went into liquidation in December 1997.


The Revenue contended that by s.216 and s.217 Insolvency Act 1986 Nash was jointly and severally liable for those debts. John Nash (Specialist Services) Ltd ('company 1') went into liquidation on 15 January 1997. Nash was a director of company 1 for the whole of the period of 12 months ending with the date of liquidation. Company 1 was also known by the names "Alpine Specialist Services" and "Alpine Diamond Drilling" during the twelve month period ending with 14 January 1997. Nash was a director of company 2 from 5 July 1996 until 31 December 1996 when he resigned and his son ('D') was appointed director. D then resigned and Nash was re-appointed and remained a director until company 2 went into liquidation on 12 December 1997. The Revenue contended that Nash was involved in the management of company 2 at all material times between 15 January 1997 and 31 July 1997. Nash denied inter alia that the name Alpine Specialist Services was so similar to Alpine Diamond Drilling as to suggest an association. HELD: From the evidence it was clear that the Revenue had satisfied s.216 of the Act and Nash had no defence to its claim that the debts were incurred when he was clearly a director. Further, from the evidence the Revenue also established that Nash was concerned in the management of company 2 during the period 1 January 1997 to 31 July 1997.


Judgment accordingly.