Palma restaurant fine quashed

The method used by the inspectors to estimate a potential fraud apparently contained calculation errors and was incomplete.

The Tax Agency launched an investigation into the VAT and Corporate Tax paid by Explorest SL, which operates Can Pedro restaurants I and II.

They compared the quantities of six products bought and sold by the restaurant over a specific period and said their results showed that the company was hiding sales.

The Defence Lawyer for Can Pedro, Daniel Fiol, was able to prove, with the help of an expert from the Department of Financial Economy at the UIB, that the Hacienda’s calculations were incorrect.

The court ruled the investigators failed to take several important factors into account; that perishables expire so not all products bought by the restaurant are sold; there are 80 employees who eat at the restaurant; some ingredients are used for more than one dish and products bought one month may not be used until the next.