Suppressed takings

Assessment made within time limit

An HMRC officer visited the taxpayer’s shop on 4 September 2009. He began a VAT enquiry because he suspected that the taxpayer was not declaring phonecard and top-up sales in his VAT returns. In March 2011 the officer raised an assessment on the basis that the takings had been suppressed by 40%. The taxpayer appealed. He said the assessment was out of time on the basis that the one-year limit in VATA 1994 s 73(6)(b) had started on 4 September the date the last piece of evidence of sufficient weight had come to the Revenue’s knowledge to justify the assessment. The Revenue said the year ran from 20 April 2010 the date of another meeting by which time the officer was satisfied with the evidence.

The First-tier Tribunal dismissed the taxpayer’s appeal saying the burden on him to show...