- The FTT dismissed Kadir’s appeal against a VAT assessment but allowed a reduction in penalties
- The case involved a best judgment assessment under the Value Added Tax Act 1994
- HMRC conducted unannounced visits and test purchases at Kadir’s business to observe operations
- The assessment was based on a discrepancy in cash to card sales ratio and Merchant Acquirer data
- Kadir failed to provide sufficient evidence to disprove HMRC’s assessment of suppressed cash sales
- The FTT noted inconsistencies in Kadir’s records and explanations
- Despite poor record-keeping, Kadir’s engagement with HMRC led to a penalty reduction from 56% to 52.5%
- The FTT confirmed the penalty was correctly applied and did not find any special circumstances to alter HMRC’s decision
Source: claritaxnews.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
