Yummy Yummy Takeaway Limited & Anor. v The Commissioners for HMRC
Decision date: 5 September 2022
Neutral citation: [2022] UKFTT 326 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
HMRC issued discovery corporation tax and best‑judgment VAT assessments, associated penalties, and a personal liability notice against Yummy Yummy Takeaway Limited and its director Paul Donaldson for under‑recording cash sales. The Tribunal found material under‑recording on two unannounced visit nights, attributed the deliberate suppression of cash takings to the company and to PD, upheld the assessments and penalties but ordered minor recalculation of quantum (using card sales = 44%) and adjusted mitigation percentages. The personal liability notice against PD was confirmed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
Where contemporaneous unexplained spikes in cash takings on observed nights are corroborated by card‑acquirer data and till records, the Tribunal may infer deliberate suppression of cash takings; such findings can justify HMRC discovery corporation tax assessments and bona fide best‑judgment VAT assessments based on available material, even if some evidential detail is imperfect.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal criticised aspects of HMRC’s witness preparation and record‑handling and excluded poorly documented covert purchase notes, but indicated that such procedural shortcomings do not invalidate bona fide assessments founded on reliable underlying data; it emphasised the need for proper witness availability when reliance is placed on covert purchase evidence.