Abdul Kadir, owner of Spice Garden Indian Cuisine in Eastbourne, appealed against VAT assessments totalling £176,249, as well as a penalty for £90,960, after HMRC accused the restaurant owner of ‘suppressing cash sales’. He was also fined for submitting incorrect VAT returns for eight years between 2008 and 2016.

At a First Tier Tribunal (FTT) hearing, the judge heard that over a three-year period between 2015 and 2018 HMRC conducted ‘test eat’ purchases on the premises of Spice Garden Indian Cuisine, witnessing Kadir cashing up at the end of the day. However, there were not enough bills for the amount of money that passed through the till.

One year later HMRC asked for the company’s accounts but received no reply from Kadir.