HMRC failed to discharge the burden of proving a loss of tax due to careless or deliberate behaviour by the taxpayer for discovery assessment purposes, and till receipts did not support HMRC’s contention of additional sales.

The appellant commenced operating a fast food takeaway business as a sole trader in June 2007. The purchase agreement for the business stated that it was a going concern, and the purchasers had agreed to enter new leases for two leasehold premises (‘15B’ and ‘18B’). The appellant ran the restaurant from 15B and his cousins managed 18B.  Included in the sale agreement were two Samsung tills (‘Till 1’ and ‘Till 2’). 

In addition, a further two tills (‘Till 3’ and ‘Till 4’), which had been retained in storage in 18B, were handed over.  Following the purchase, the appellant used Till 1 and Till 2 in his premises. After the purchase, Till 2 was