HMRC had found discrepancies in the sales records which were as a result of a failure to record all card purchases. HMRC concluded that takings had been suppressed and that card sales after 8pm were not recorded. The taxpayer accepted that some suppression of card purchases did occur.
The new evidence that the taxpayer sought to admit related to information held by HMRC, which had been requested by the taxpayer, showed that ‘the suppression of card purchases was inconsistent'.
It was highlighted that 'till rolls taken away by HMRC during their visits covered around a dozen days in the relevant period.
'However, [HMRC] Officer Bush based her conclusion in relation to card purchases on a consideration of the till rolls for only three days. It is not apparent from the evidence (and we were offered no explanation at the hearing) why Mrs Bush chose to consider only three days, and why she chose those particular days, as the basis for her conclusion that card purchase suppression was occurring in the same way for each day throughout the relevant period.
'The new evidence, which includes till rolls for days other than the three chosen in this respect by Officer Bush, showed that in fact the suppression of card purchases was inconsistent. It was not in fact the case that such payments were being omitted after 8pm each day.’
It was concluded that had the FTT already seen this evidence – which was in the possession of HMRC but not then disclosed – it may have had an important influence on its decision.