Nadhim Zahawi sacked as Tory chairman over tax affairs row

[MenInG]

I pinch myself every morning - Zahawi

Nadhim Zahawi says he could "well up" at the thought of being appointed to the role of chancellor.

Zahawi was born in Iraq in 1967 - his parents were forced to flee the country and he grew up in Britain.

“I pinch myself every morning to wake up to think the 11-year-old who arrived on these shores and couldn’t speak a word of English, is now the member for Shakespeare, for the heart of England, and the chancellor of the exchequer in her majesty’s government," he tells BBC's Radio 4.

"This is the greatest country on Earth," he adds.

==

What are the immediate challenges Zahawi will face?

The cost of living is one of the first things the new chancellor will have to grapple with as he moves into No 11 Downing Street.

There are growing fears the UK could fall into a recession, defined as the economy getting smaller for two consecutive three-month periods, with higher prices causing households and businesses rein in spending.

Here are some of the main issues Zahawi will face:

Inflation: The rate at which prices rise is currently running at a 40-year high of 9.1% and is set to rise past 11% in the autumn
Energy bills: A typical household energy bill is now heading above £3,000 a year this winter, £200 higher than previously predicted. Bills rose by an unprecedented £700 in April
Fuel prices: The cost of petrol and diesel has soared following Russia's invasion of Ukraine, with the cost of a litre of petrol rising by 17p in June alone. Former Chancellor Rishi Sunak introduced a 5p a litre cut to fuel duty but there are calls for more action
Food costs: The war in Ukraine is also impacting on some food supplies globally, such as wheat and sunflower oil. Supermarkets in the UK say they are trying to keep a lid on price rises, but latest official figures show people are cutting back on shopping as the cost of living bites into budgets

BBC

 

[MenInG]

Exclusive: The NCA inquiry did not lead to any action against Zahawi and there was no suggestion of wrongdoing

New chancellor Nadhim Zahawi’s finances were secretly investigated by the National Crime Agency (NCA), The Independent can disclose.

A senior serving Whitehall figure has revealed that a number of individuals were formally approached by officials from the NCA about the matter in 2020.

The NCA said they were seeking information about multimillionaire Mr Zahawi’s finances, stated the source. The inquiry was codenamed “Operation Catalufa” and is understood to have involved the agency’s International Corruption Unit.

Catalufa, known as “Popeye Catalufa”, is a species of ray finned fish, orange in colour, found in deep waters in the Pacific.

Whitehall officials were told the inquiry was top secret and that Mr Zahawi had not been informed about it. The NCA inquiry did not lead to any action against Mr Zahawi. There is no suggestion of wrongdoing by him.

The first Mr Zahawi knew about the matter was when he was informed by The Independent on Wednesday.

His initial reaction was: “There was no such investigation by [the] NCA. I would know. Right?”

When told that The Independent had established that the NCA had looked into his business affairs, he replied: “The NCA never approached me or told me anything ever in my career.”

He added: “I have paid all due taxes and obeyed all financial laws and regulations.”

Asked if Mr Johnson was aware of the NCA investigation when he appointed Mr Zahawi chancellor, a No 10 spokesperson said: “All checks were made.”

Pressed to say if Mr Johnson had been told about the investigation into Mr Zahawi, the spokesman added: “The usual pre-appointment declarations were made by the minister and any necessary checks completed.”

The Zahawi/NCA riddle started several days ago when Dominic Cummings, Mr Johnson’s former senior No 10 aide, posted a sarcastic tweet about former Cabinet reshuffle discussions with Mr Johnson in which he described how ministers’ personal and political shortcomings were aired.

Referring to the characterisation of one unnamed cabinet minister, Mr Cummings’ tweet said: “Under investigation by NCA (he doesn’t know).”

The identity of Mr Zahawi as the minister referred to by Mr Cummings was disclosed to The Independent by a separate source with detailed knoweldge of the police inquiry.

The individual also stated that Mr Zahawi had not known of the NCA inquiry.

“They didn’t tell him because they were trawling for information,” said the individual.

The controversy comes less than 24 hours after Mr Zahawi replaced Rishi Sunak at the Treasury.

If Mr Johnson is brought down as Prime Minister, loyalist Mr Zahawi, a popular figure among Tory MPs, is one of the main contenders to succeed him.

Mr Zahawi, 55, was born in Iraq and came to the UK as a child when his Kurdish family fled Saddam Hussein’s regime.

He made his fortune with online polling company YouGov and was chief executive of Gulf Keystone Petroleum until 2018.

He became MP for Stratford-upon-Avon in 2010.

He was appointed children’s minister in 2018 and promoted to business minister the following year. After winning praise for his success as minister for vaccines during the pandemic he joined the cabinet as education secretary last September.

Mr Zahawi cut his teeth in politics running Jeffrey Archer’s unsuccessful 1990s bid to become London mayor. Archer pulled out of the contest after it emerged that he had lied in a libel case. He was later imprisoned for the offence. Mr Zahawi was not linked to the matter.

Mr Zahawi got caught up in the MPs’ expenses scandal and “apologised unreservedly” in 2013 after it was reported that he claimed £5,822 expenses for electricity for his riding school stables and a yard manager’s mobile home.

The NCA did not respond to a request to comment.

https://www.independent.co.uk/news/...=Social&utm_source=Twitter#Echobox=1657128279

 

[Technics 1210]

Why aren’t liberals jumping for joy? They love a refugee succeed when they see one; oh wait, this refugee swindled £££ during the expenses scandal.

And if this wasn’t enough, look up Gulf Keystone Petroleum. One of the greatest oil share swindles of the millennium.

Oh diddums.

 

[James]

Rumours that 24 hours after his new appointment Zahawi is a part of the Cabinet contingent trying to force Boris into standing down. We are in surreal world here.

 

[MenInG]

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Prime Minister: this is not sustainable and it will only get worse: for you, for the Conservative Party and most importantly of all the country. You must do the right thing and go now. <a href="https://t.co/F2iKT1PhvC">pic.twitter.com/F2iKT1PhvC</a></p>— Nadhim Zahawi (@nadhimzahawi) <a href="https://twitter.com/nadhimzahawi/status/1544950219657330688?ref_src=twsrc%5Etfw">July 7, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[shortbread]

Here's the funny part, there are strong rumours that Zahawi was threatening to resign from Johnson's cabinet if he wasn't given the vacant chancellor position. BoJo cedes and makes Zahawi the new chancellor.

Now Zahawi is asking BoJo to resign, lol!

If folk thought politics in the hinterlands were bad, the current UK crisis has taken the game to a whole new level. Irrespective of whoever is the PM, the tories will backstab their own, simply cannot resist!

 

[MenInG]

Nadhim Zahawi has said he is "clearly being smeared" after questions were reportedly raised about his personal finances before his appointment as chancellor.

The former education secretary and vaccines minister, who is vying to take over from Boris Johnson, told Sky News he had "always" paid his taxes and had "declared" them in the UK.

Should he become prime minister he will publish his accounts annually, he pledged.

According to The Observer newspaper, a "flag" was raised by officials before Mr Zahawi was made chancellor on Tuesday.

The 55-year-old replaced Rishi Sunak, who had quit earlier that evening and suggested in his resignation letter that Mr Johnson's government was not being conducted "properly, competently and seriously".

Civil servants in the Cabinet Office's propriety and ethics team alerted the prime minister to an HM Revenue and Customs "flag" over Mr Zahawi before his appointment, The Observer reported.

Mr Johnson went ahead with the appointment "despite the possible concerns over his tax affairs", it added.

A source told the newspaper such matters could "stop someone receiving an MBE or OBE" and that the "idea he could be chancellor or even prime minister is unbelievable".

Another report, in The Independent, said Mr Zahawi's finances were "secretly investigated" by the National Crime Agency.

The investigation did not lead to any action and there has been no suggestion of wrongdoing.

Speaking to Sky News presenter Kay Burley, Mr Zahawi said he had been unaware of the allegations.

"So I was clearly being smeared. I was being told that the Serious Fraud Office, that the National Crime Agency, that HMRC are looking into me," he said.

"I was not aware of this, I have always paid my taxes, I have declared my taxes in the UK."

Referring to a possible investigation, Mr Zahawi added: "I will answer any questions that HMRC has of me.

"But I will go further: I am going to make a commitment today that if I am prime minister I am going to publish my accounts annually."

Mr Zahawi, who co-founded the polling company YouGov, is said to be worth more than £100m.

He is one of nine Conservative MPs who have declared that they are running for the party leadership so far.

Born in Iraq, he has said he "came here aged 11 without a word of English".

He added in his initial bid to become PM: "The Conservative Party has made me who I am today.

"It gave me an education, it provided my family with a home and, most importantly, it provided hope."

He is promising tax cuts and education reforms if successful.

SKY

 

[Technics 1210]

Anyone interested just look at what happened at Gulf Keystone Petroleum.

No surprise Zahawi is being investigated.

 

[Cpt. Rishwat]

I had no idea who this guy was to be honest, so interesting to read the OP article and find he's the son of a traitor in his own country. I think the best he can do is take over Rishi's role as a number 2, and I don't mean that in the bathroom sense.

 

[MenInG]

Nadhim Zahawi has said he is "clearly being smeared" after questions were reportedly raised about his personal finances before his appointment as chancellor.

The former education secretary and vaccines minister, who is vying to take over from Boris Johnson, told Sky News he had "always" paid his taxes and had "declared" them in the UK.

Should he become prime minister he will publish his accounts annually, he pledged.

According to The Observer newspaper, a "flag" was raised by officials before Mr Zahawi was made chancellor on Tuesday.

The 55-year-old replaced Rishi Sunak, who had quit earlier that evening and suggested in his resignation letter that Mr Johnson's government was not being conducted "properly, competently and seriously".

Civil servants in the Cabinet Office's propriety and ethics team alerted the prime minister to an HM Revenue and Customs "flag" over Mr Zahawi before his appointment, The Observer reported.

Mr Johnson went ahead with the appointment "despite the possible concerns over his tax affairs", it added.

A source told the newspaper such matters could "stop someone receiving an MBE or OBE" and that the "idea he could be chancellor or even prime minister is unbelievable".

Another report, in The Independent, said Mr Zahawi's finances were "secretly investigated" by the National Crime Agency.

The investigation did not lead to any action and there has been no suggestion of wrongdoing.

Speaking to Sky News presenter Kay Burley, Mr Zahawi said he had been unaware of the allegations.

"So I was clearly being smeared. I was being told that the Serious Fraud Office, that the National Crime Agency, that HMRC are looking into me," he said.

"I was not aware of this, I have always paid my taxes, I have declared my taxes in the UK."

Referring to a possible investigation, Mr Zahawi added: "I will answer any questions that HMRC has of me.

"But I will go further: I am going to make a commitment today that if I am prime minister I am going to publish my accounts annually."

Mr Zahawi, who co-founded the polling company YouGov, is said to be worth more than £100m.

He is one of 11 Conservative MPs who have declared that they are running for the party leadership so far.

Born in Iraq, he has said he "came here aged 11 without a word of English".

He added in his initial bid to become PM: "The Conservative Party has made me who I am today.

"It gave me an education, it provided my family with a home and, most importantly, it provided hope."

He is promising tax cuts and education reforms if successful.

https://news.sky.com/story/conserva...y-being-smeared-over-tax-allegations-12649436

 

[MenInG]

Zahawi camp also confident they have 30 backers

Brandon Lewis, the former Northern Ireland secretary, says he is confident Chancellor Nadhim Zahawi has the 30 supporters needed to get through to the second round of voting in the leadership competition.

A total of 14 MPs have publicly declared support for Mr Zahawi, according to Sky News figures.

Asked about criticisms of Mr Zahawi's campaign for promising a large number of tax cuts, Mr Lewis says the plan has "absolutely" been costed.

 

[MenInG]

<blockquote class="twitter-tweet" data-partner="tweetdeck"><p lang="en" dir="ltr">Nadhim Zahawi is using NZ4PM as his leadership election tag. If you click on <a href="https://t.co/x6Twdu2bv1">https://t.co/x6Twdu2bv1</a> you are redirected to Penny Mordaunt’s leadership home page. Comedy gold. You gotta love this contest</p>— Robert Peston (@Peston) <a href="https://twitter.com/Peston/status/1547123276266217474?ref_src=twsrc%5Etfw">July 13, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[MenInG]

Now knocked out of the contest to become PM:

Mr Zahawi failed to meet the 30-vote threshold, only getting 18 votes.

 

[MenInG]

The Chancellor of the Exchequer, Nadhim Zahawi, has been sending threatening letters, drafted by expensive lawyers, to people investigating his tax affairs. The letters are designed to intimidate, and say they are confidential and can’t be published. One was sent to me. I am publishing it.

The letters

The public have a right to know if the Chancellor of the Exchequer – the person responsible for HMRC and tax – created a tax avoidance scheme to avoid £4m of his personal tax. At this moment I expect HMRC is considering whether to launch an investigation… it’s hard to imagine a worse conflict of interest than the Chancellor being investigated by tax inspectors whose conduct he can influence.

And the public definitely have a right to know if the Chancellor sends letters to prevent the media and others from writing about his tax avoidance.

I believe in transparency. I think it’s improper for lawyers acting in the shadows to curtail legitimate public debate about important public figures, particularly when there are allegations they’ve been dishonest. So I told the Chancellor’s lawyers I’d only accept open correspondence. They persisted in sending me letters that claim to be confidential. They aren’t. They contain no confidential information, and I never accepted a duty of confidence – indeed I explicitly rejected it. I don’t believe the Chancellor ever really intended to pursue a claim. The public interest is so obvious, and so strong, any libel claim would be farcical.

The letter they sent me says, rather artfully, that it’s not actually a threat to sue for libel. But it comes from a libel lawyer, and tries to prevent me publishing it. Similar letters have been sent to others in recent weeks, and I understand Zahawi has done this before – using lawyers to silence people writing about his tax affairs.

I’ve considered very carefully whether I should publish the correspondence. I’ve considered the matter with others and spoken to a legal ethics expert. All support my view that in the circumstances of this case there is no legal or ethical reason not to publish the letters, and a powerful public interest in publishing. So that is what I’m doing. And I will be writing to the Solicitors Regulatory Authority to ask them to make clear that lawyers should never assert that letters of this kind are confidential unless there is a proper and reasoned basis for such an assertion (which is is clearly absent here). More here on why I am confident this is both lawful and proper.

The background

For the last couple of weeks, I’ve been writing about how, when Nadhim Zahawi co-founded YouGov, his 42.5% founder shareholding ended up with a Gibraltar company, Balshore, owned by a secret offshore trust controlled by his parents. I said it looked like tax avoidance. I am a tax expert. And every other tax expert I’ve spoken to agrees – accountants, solicitors, QCs, and retired HMRC inspectors.

Zahawi provided an explanation for this: that his father had provided “startup capital”. But he hadn’t. He may have provided £7k for some of the 42.5% but (according to documents filed by YouGov) another investor paid £285,000 for 15% of the shares at the same time. Clearly £7k didn’t justify 42.5%. I published my conclusion – there were three possibilities: I’d made a mistake; YouGov had filed a series of wrong documents; or Zahawi was lying. I invited Zahawi to respond. He didn’t – instead he switched to a new explanation – that his father had provided so much assistance, and Zahawi was so inexperienced, that it was only fair for YouGov to give his company (Balshore) the shares.

I couldn’t understand why he provided that first explanation, and then dumped it and alighted on a new one (itself not very credible). I couldn’t think of any explanation except deliberate deception – so I called it what I thought it was: a lie. It’s this that has Zahawi so unhappy. The latest defence piles on more of what look like falsehoods. They suggest the false explanation was given only once, when I know it was given to at least three people. Zahawi’s lawyers confuse the words “capital contribution” and “startup capital” (they surely know the difference). They muddle Zahawi’s first explanation with his second. I think they know they have no real argument, and no serious libel claim. Which is why, instead, they have focused on silencing me – with bullying letters from the shadows. But I’m not going to play that game.

This is not the only false statement from Zahawi. On 11 July he told Sky News he didn’t benefit from an offshore trust and wasn’t a beneficiary of it. In fact he was – in 2005 Zahawi absolutely received a gift from Balshore. This was a benefit and he was a beneficiary – in both everyday English and technical tax law. I have not called this a “lie” because Zahawi may just have been confused. But for him not to correct his past statement is unacceptable.

And Zahawi’s tax avoidance may have triggered a raft of further taxes: value added tax in 2000; trust taxation on gifts and capital gains in subsequent years; and withholding tax on his many interest payments to Gibraltar. I’ve asked Zahawi’s lawyers if he paid these taxes. Their response – he doesn’t want to get into a debate when he has an important job to do. But a large part of that job is being in charge of the tax system. And it’s not a debate, it’s a simple question: did the Chancellor fail to pay tax that was due? The public has a right to know.

The documents

Here’s the initial Twitter DM I received from Zahawi’s lawyers, Osborne Clarke. Note my reply that I won’t accept “without prejudice” letters (a “without prejudice letter” is often sent by lawyers negotiating a settlement; it can’t subsequently be put before a court, because that would dissuade people from trying to settle disputes). The opposite is an “open” letter.

Read the letters at:

https://www.taxpolicy.org.uk/2022/07/22/letters/

 

[James]

Becoming increasingly clear that this guy was and is completely unsuited to any senior cabinet role, let alone the PM position.

 

[MenInG]

Middle earners, as well as low earners, are likely to need government help to pay their energy bills this winter, Chancellor Nadhim Zahawi has warned.

The energy regulator hiked the price cap on household bills by 80% on Friday, meaning the average bill will rise to £3,549 a year from October.

Speaking to the Daily Telegraph, Mr Zahawi said even those earning £45,000 a year may need support.

He said the Treasury was exploring "all the options" to help households.

He added that the country was in a "national economic emergency [that] could go on for 18 months, two years".

The rise in the energy price cap - which is the maximum amount that suppliers can charge households per unit of energy - means millions of households will see their annual bills rise from about £1,971 currently.

Typical prepayment meter customers will also see their bills rise to £3,608.

Charities and experts have warned that the rise will have a devastating impact on households and that lives will be at risk without government intervention.

Both Liz Truss and Rishi Sunak, one of whom will be announced as the next prime minister on 5 September, have pledged further support, though neither has given details.

The government has already announced that all households will get a £400 rebate on energy bills, with low income and vulnerable households receiving an additional £650.

BBC

 

[MenInG]

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Nadhim Zahawi has released a statement to "address some of the confusion about my finances" – saying his father took founder shares in YouGov and that HMRC later "disagreed about the exact allocation" leading him to "settle the matter and pay what they said was due"</p>— Sky News Breaking (@SkyNewsBreak) <a href="https://twitter.com/SkyNewsBreak/status/1616793923518697476?ref_src=twsrc%5Etfw">January 21, 2023</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[topspin]

I had no idea who this guy was to be honest, so interesting to read the OP article and find he's the son of a traitor in his own country. I think the best he can do is take over Rishi's role as a number 2, and I don't mean that in the bathroom sense.

I find this quite disturbing even by your low standards. Him and his family had to flee Iraq because Saddam Hussain were killing Kurds. This was akin to how Nazis were killing Jews using gas during World War 2.

Nothing wrong with disliking Zahawi but to call his father a traitor for fleeing a war is a comment in very bad taste.

 

[Robert]

Becoming increasingly clear that this guy was and is completely unsuited to any senior cabinet role, let alone the PM position.

None of them are. All the responsible and competent Tories got purged. The loony right is what remains. None should ever be elected to county council, let alone high office.

 

[Robert]

I find this quite disturbing even by your low standards. Him and his family had to flee Iraq because Saddam Hussain were killing Kurds. This was akin to how Nazis were killing Jews using gas during World War 2.

Nothing wrong with disliking Zahawi but to call his father a traitor for fleeing a war is a comment in very bad taste.

I didn’t know he has Kurdish lineage. That’s fascinating.

 

[ElRaja]

None of them are. All the responsible and competent Tories got purged. The loony right is what remains. None should ever be elected to county council, let alone high office.

sad state of affairs when every tom, dick and harry gets a seat on the ride since no one can last long enough to complete their term. the tory party needs to get destroyed at the next elections so they realise they don't have a divine right to rule and they can be cleansed of the incompetent leaches and parasites that occupy its top brass. absolute joke of a leadership which has turned the party into a total joke.

 

[Robert]

sad state of affairs when every tom, dick and harry gets a seat on the ride since no one can last long enough to complete their term. the tory party needs to get destroyed at the next elections so they realise they don't have a divine right to rule and they can be cleansed of the incompetent leaches and parasites that occupy its top brass. absolute joke of a leadership which has turned the party into a total joke.

I fully agree.

Already, many Tory MPs are not standing at the next GE. They know the gig is up.

 

[MenInG]

Nadhim Zahawi settled his tax issue with HMRC while he was serving as chancellor, a government source has told Sky News.

Questions about the now Tory chairman's deal with tax authorities have continued, even after he released a statement to "address some of the confusion about my finances".

e admitted he paid what HMRC said "was due" after it "disagreed about the exact allocation" of shares in the YouGov polling company he co-founded, an error he noted was "careless" not deliberate.

But he did not disclose the size of the settlement - reported to be an estimated £4.8m including a 30% penalty - or whether he paid a fine.

SKY

 

[Technics 1210]

The irony of Rishi Sunak asking an independent ethics adviser to look into the tax affairs of Nadhim Zahawi. Where was this independent ethics adviser when Rishi Sunak was caught endorsing tax avoidance with respect to his wife and CoE!?

 

[DeadlyVenom]

sad state of affairs when every tom, dick and harry gets a seat on the ride since no one can last long enough to complete their term. the tory party needs to get destroyed at the next elections so they realise they don't have a divine right to rule and they can be cleansed of the incompetent leaches and parasites that occupy its top brass. absolute joke of a leadership which has turned the party into a total joke.

Very well said.

My only worry is that the destruction of the tories opens up the gate for more radical right wing parties like Reform UK and fringe lunatics.

 

[ElRaja]

Very well said.

My only worry is that the destruction of the tories opens up the gate for more radical right wing parties like Reform UK and fringe lunatics.

i dont think it will, the radical right have very little to offer economically, and most average brits are desperate for some economic sanity to return to politics.

I'm one of the most free market right wing guy on this forum pbly, but even i can see the system is blatantly rigged and tory have firmly planted their flag for large state corporatism, and the corruption and autocracy is getting to the point where its had material effects over the country, perhaps for the first time i can think of, since the time of kings debasing currencies to fund wars.

the moves to weaken key worker unions, and impinge on protestors' rights are all leering towards facism. you cannot have captive public sectors workers without functioning unions.

its got to the point i think joe average realises this, and i suspect lib lab will win massively, if they dont then starmer and whoever is leading the libs need to be taken out behind the barn and put out of their misery.

if there is any silver lining to this mess, i hope we can return to some form of ideological politics for the masses. the polarisation between populism and apathy needs to end.

 

[Robert]

Very well said.

My only worry is that the destruction of the tories opens up the gate for more radical right wing parties like Reform UK and fringe lunatics.

FPTP will stop those guys getting MPs. It’s very difficult for even the third party to make headway.

The Tories will have a long time to think about what they are for. Their hard right may drop off into splinter parties, and a new centre-right axis coalesce around an old style One Nation Tory like MacMillan. Or they could go hard right / authoritarian, in which case their moderate soft blue voters break yellow.

 

[Robert]

the moves to weaken key worker unions, and impinge on protestors' rights are all leering towards facism. you cannot have captive public sectors workers without functioning unions.

its got to the point i think joe average realises this, and i suspect lib lab will win massively, if they dont then starmer and whoever is leading the libs need to be taken out behind the barn and put out of their misery.

if there is any silver lining to this mess, i hope we can return to some form of ideological politics for the masses. the polarisation between populism and apathy needs to end.

Centre voters appear to have jumped over the Libs (who have hamstrung themselves by electing Captain Boring to lead) and gone for Starmer Labour. It’s going to be a bloodbath for Tories. I reckon Labour will get a 170 seat majority. Not before time. We need stronger unions, more equality, an end to food banks and a repaired NHS.

 

[daytrader]

Tory former minister calls for Nadhim Zahawi to resign

A Conservative former minister has become the first Tory MP to publically call for Nadhim Zahawi to stand down as party chair.

Speaking to TalkTV last night, former immigration minister Caroline Nokes said: "I think there are too many unanswered questions.

"I think the challenge for Nadhim is - look at the front pages. He's leading too many of them.

"And when you become the story it's a distraction from anything else the government is trying to do.

"There are countless examples of good, competent, cabinet colleagues who have got themselves in a mess who have resigned quickly and come back, really in some instances just a few months later.

"And I really think in order to get this cleared up Nadhim should stand aside and let the investigation run its course."

SKY

 

[MenInG]

HM Revenue and Customs has come under scrutiny for providing misleading information last year after it said that no Government minister was under investigation, as the row over Nadhim Zahawi’s tax affairs continues.

It follows a difficult week for Downing Street as calls continue for the Conservative Party chairman to stand aside while under investigation for settling a multimillion-pound tax dispute while chancellor.

Mr Zahawi has authorised HMRC to discuss his settlement – estimated to be worth £4.8 million and include a penalty – with the ethics investigation ordered by Prime Minister Rishi Sunak.

Pressure on ministers grew after HMRC boss Jim Harra told MPs there are “no penalties for innocent errors in your tax affairs”.

On Saturday, HMRC admitted that it had made mistakes in the handling of a freedom of information request centred on the tax affairs of ministers.

It comes after the Financial Times reported that in response to an inquiry by the paper last year, HMRC said that no minister was being investigated.

But at the time, Mr Zahawi was the subject of a probe by tax officials.

The paper reported that a response to a freedom of information (FOI) request by tax lawyer Dan Neidle, who had been working to expose Mr Zahawi’s tax affairs, was believed by HMRC staff to be incorrect after he was informed that it was a backbench Tory MP and not a minister who was under investigation.

https://www.msn.com/en-gb/money/oth...sedgntp&cvid=72051f1541a747cf86c04888c133ceb7

 

[MenInG]

Nadhim Zahawi has been sacked as Tory party chairman after an ethics inquiry into the handling of his tax affairs found a "serious breach" of the Ministerial Code.

Prime Minister Rishi Sunak had resisted earlier calls from opposition parties to sack Mr Zahawi following reports that the Tory chairman had paid a penalty as part of an estimated £4.8m settlement dispute with HMRC.

He had instead asked his new ethics adviser - Sir Laurie Magnus - to assess whether the settlement amounted to a breach of the ministerial code.

In a letter written by Sir Laurie to the PM this morning following the conclusion of the investigation, the ethics adviser said Mr Zahawi had "shown insufficient regard for the general principles of the Ministerial Code" and not fulfilled the requirements of being an "honest, open and an exemplary leader".

In a second letter written by the PM to Mr Zahawi following Sir Laurie's findings, Mr Sunak said it is "clear that there has been a serious breach of the Ministerial Code" and announced the removal of the Tory chairman from his ministerial position.

SKY

 

[MenInG]

The highlights of Zahawi tax affairs report
The prime minister's independent ethics adviser Sir Laurie Magnus has sent the results of his investigation into Nadhim Zahawi's tax affairs to Rishi Sunak after a seven-day probe.

In the letter, published by Downing Street, Sir Laurie said his overall judgement was that the "omissions" by Mr Zahawi "constitute a serious failure to meet the standards set out in the ministerial code".

In the four-page report to Mr Sunak, dated 29 January, Sir Laurie says:

Mr Zahawi's contact with HMRC began in April 2021
The Tory chairman showed "insufficient regard" for the Ministerial Code
His "delay in correcting an untrue public statement" made in July 2022 was "inconsistent with the requirement for openness"
Mr Zahawi "failed to meet the requirement to declare any interests which might be thought to give rise to a conflict" by not declaring HMRC's ongoing investigation before July 2022
The Tory chairman "should have understood" that HMRC were investigating "a serious matter"
He "failed to disclose relevant information - in this case the nature of the investigation and its outcome in a penalty - at the time of his appointment"
The cabinet office "was not in a position to inform the appointing prime minister" about Mr Zahawi's tax affairs as he failed to disclose the relevant information to the department
Mr Zahawi's conduct "has fallen below the high standards" that a PM should expect from ministers.

 

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Zahawi questions 'legitimate scrutiny of public officials' in letter after sacking

Nadhim Zahawi has shared a letter to Rishi Sunak on social media after news he has been sacked as Tory chairman.

Within it, the MP says he is "concerned by the conduct from some of the fourth estate" - that is, the media - "in recent weeks".

In a lengthy letter, he adds: "In a week when a Member of Parliament was physically assaulted, I failed to see how one headline on this issue 'The Noose Tightens' reflects legitimate scrutiny of public officials.

"I am sorry to my family for the toll this has taken on them."

Mr Zahawi says Mr Sunak can "be assured of my support from the backbenches," adding that it has been the "privilege of my life" to serve in government.

You can read his letter in full below...

 

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Labour calls on Sunak to 'come clean' over Zahawi tax scandal
The Labour Party is this afternoon calling on Rishi Sunak to "come clean" about what he knew about the Nadhim Zahawi tax scandal.

Deputy leader Angela Rayner and Anneliese Dodds, the Labour Party chair, have written to the prime minister asking for "full transparency".

They said Mr Sunak should reveal what he knew about the investigation into Mr Zahawi's tax affairs - and when he found out.

Ms Rayner described Mr Sunak as "hopelessly weak", adding he was "dragged kicking and screaming into doing what he should have done long ago."

The MPs have posed a number of questions to Mr Sunak.

These include:

When he was made aware of the HMRC investigation into Mr Zahawi's tax affairs and if he knew the former party chair had agreed a multi-million pound settlement with the taxman;
Why he previously stated at PMQs that all questions on this issue had been answered;
What discussions he had with Mr Zahawi before appointing him to his cabinet;
When he will keep his promise to publish his own tax return for the 2022/23 tax year;
If any Conservative ministers had failed to submit their declaration of interests, and when the next register would be published.
Ms Dodds said: "Nadhim Zahawi should have been sacked when this murky affair first surfaced. The fact that he has been able to spend weeks dodging questions shows just how weak Rishi Sunak is.

"We need to know precisely what Rishi Sunak knew about Zahawi's tax affairs and the HMRC investigation, why he was appointed to the cabinet in the first place, and when the prime minister will be transparent about his own tax return."