An Asian businessmen today claimed more than a dozen restaurants in Bradford are being investigated by Customs officers.
Zafar Kahn claimed some restaurant owners are refusing to co-operate with the Customs and Excise officers in their VAT probes.
Mr Khan, who acts as a independent go-between for Asian businesses, said he was aware of investigations into more than 12 of Bradford's Asian restaurants and said it could push some to the brink of collapse. He said there was a hostile attitude towards inspectors among many restaurant owners in the city.
And he claimed some businesses faced the prospect of raids and lengthy Court cases if they don't begin to comply with the Customs' officers requests for information. "This is an industry in serious danger," he said. "An attitude of mistrust by owners is pushing both sides into a dangerous stand-off. This has been going on for more than ten years and the situation is at breaking point. If businesses don't start talking to Customs then some of them will go to the wall."
Mr Khan, who runs a chemical business, Zaf International, claimed many curry bosses struggle to understand the complexities of Value Added Tax and employed advisors, some of whom were encouraging a policy of non co-operation with the investigators. "Many owners do not realise that Customs keep tabs on all restaurants and are not picking on Asian owners," he said.
"Our restaurants have nothing to fear from Customs and Excise who can help them settle their VAT bills amicably."
Mahboob Hussain Junior, co-owner of Nawaab Restaurants, also urged businesses to sit down and talk through their problems with Customs officers. He said a misunderstanding had led to a three year dispute with officials, during which his restaurant was raided and he was charged with tax evasion.
However, on the eve of a planned five week trial, clear-the-air-talks with officers resulted in the prosecution offering no evidence and Mr Hussain and his brother being acquitted on all charges.
He said: "This proves to other restaurants that you can sit down and resolve these matters."
Mumtaz Paan House on Great Horton Road have also found themselves in hot water over unpaid VAT. They are challenging a bill of £204,000 and an extra evasion penalty of £197,000 in the European Court.
Bankruptcy petition hearings against the company have been put on hold while the case is heard. A spokesman for HM Customs and Excise said: "We deal open-handedly with all businesses. We investigate any traders who we believe are not paying the right amount of tax.
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