Assessment – Underdeclaration of petrol sales alleged by Commissioners – Deficiency caused by short delivery from suppliers – Value Added Tax Act 1983, Sch. 7, para. 4.
The taxpayers were assessed on the grounds that the amount of petrol shown as sold by them was considerably less than the recorded purchases. The taxpayers contended that the shortfall was caused by leakage from underground storage tanks, alternatively faulty calibration of petrol pumps which gave an excessive amount of petrol to customers or a substantial amount of petrol had been invoiced to the taxpayers which had never been delivered to them.