BOSSES at a lap-dancing club called Legs N Co kept "inadequate" financial records, a tax judge has ruled.
Judge Kenneth Mure said directors of Risky Business - the firm which ran the club in Glasgow - were negligent.
The judge made criticisms after Risky Business appealed against a tax assessment made by Her Majesty's Revenue & Customs (HMRC).
After a hearing at a tax tribunal in Edinburgh, he said a tax inspector was "fair-minded" in concluding bosses "under-declared" profit.
Judge Mure said, in a judgment published on a legal website, that Risky Business traded as Legs N Co in Maxwell Street, Glasgow, between 2001 and 2007.
The judge said dancers paid fees to Risky Business for the "opportunities" provided by the club.
He said tax inspector Brendan Macrae noted that fees Risky Business claimed to have charged appeared to be "suspiciously below" the level charged at other clubs.
A Risky Business director had insisted the fees claimed were correct.
"Risky Business's charges were well below those of 40 other similar businesses," said Judge Mure.
"Risky Business claimed to charge £10 per shift while, curiously, a website, Laptastic, purporting to recruit dancers to work at Risky Business's premises, indicated charges of between £35 and £50 per shift."
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