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The Great British Takeaway Ltd (TC8584)
The taxpayer traded as a fish and chip shop. After extensive enquiries and checking of Z-readings on tills HMRC raised an assessment to cover suppressed sales on VAT returns submitted for the periods November 2014 to May 2018.
A penalty for £49 666 was also issued on the basis that the taxpayer’s actions deliberately understated the output tax payable to HMRC. The maximum penalty rate for a prompted disclosure is 70% of the tax owed (minimum 35%). HMRC reduced the maximum rate as follows:
- telling – 10% out of a maximum of 30% as the taxpayer did not provide information about the ‘true basis or methodology of the suppression’;
- helping – 30% out of a maximum of 40% – the taxpayer had attended meetings and provided information when requested but did not help to quantify the arrears; and
giving – the full 30% discount was given.
The taxpayer appealed.
The First-tier...
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