The appellant was a Chinese takeaway that was assessed for underdeclared takings on the basis of one invigilation carried out on a Friday. HMRC considered that the cash takings had been understated. 

HMRC argued that the invigilation undertaken on 10 March 2017 established a daily gross takings (‘DGT’) of £1,656.91, which was reflective of the appellant’s normal level of sales for Fridays. An average DGT of £1,082.94 was shown in previous takings for Fridays, over a three-year period. This, they argued, was reflective of a significant level of sales suppression by the appellant, although errors were recorded on the night of the invigilation. 

The appellant argued that: 

• the DGT, on the day of the invigilation, covered both cash and card takings and was only evidence of an increase in sales generally;