Chinese Takeaway owner sentenced for not declaring income from Just Eat sales

|News, Fraud and economic crime

The Crown Prosecution Service has successfully prosecuted a Chinese Takeaway owner who failed to declare the money he was making selling his food through the Just Eat delivery outlet.

Shou Ling Xue, 50, ran the Long Rong Chinese Takeaway, in Ashton New Road in Manchester which has been trading since 11 November 2012. Mr Xue did not declare sales made through the on-line portal JustEat.co.uk and under-declared his income on his self-assessment tax returns.

HM Revenue and Customs were doing a wider investigation into undeclared Just Eat income and obtained data about the Long Rong Chinese Takeaway.

Between April 2014 and March 2018, Mr Xue had an undeclared turnover of £638,451.30 for VAT and £347,829.10 for self-assessment. Therefore the Treasury lost £90,898 in VAT and £68,454.82 in income tax.

Mr Xue pleaded guilty to two counts of knowingly evading tax. Today (26 July 2019) at Manchester Crown Court, Mr Xue was given a 12-month jail term, suspended for a year, for evading VAT and a 12-month jail term, suspended for a year, for evading Income Tax. He must also do 200 hours of unpaid work in the community.

Mr Xue’s defence lawyer has challenged the amount of unpaid tax and this will be finally determined at a Proceeds of Crime Hearing when the state will determine how the unpaid money will be reclaimed.

Maqsood Khan, of the CPS Mersey-Cheshire Fraud Unit, said: “We are currently looking at a number of outlets that are not declaring the income they receive from food sold through online portals such as Just Eat and Hungry House.

“Concerns about this is what led to the HMRC investigation in the first place. Mr Xue may be one of many. The public purse has a lot of demands on it and it is important that every one of us pays in what we are supposed to. Evading tax is a crime and those who do it will be prosecuted.”

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