Today, Nadhim Zahawi is struggling to maintain his position as Conservatives warn that he will have to “take the consequences” of any further discoveries on his tax troubles.
Allies of the Tory leader said he had “absolutely” no intention of resigning after it was revealed he settled a dispute with HMRC for millions of pounds when Chancellor last summer.
According to sources, tax authorities acknowledged the blunder was ‘careless’ rather than intentional, and Mr. Zahawi chose to pay the full amount sought instead of negotiating. Downing Street has shown its support for the senior minister.
However, the controversy shows little sign of abating, with Labour labeling Mr. Zahawi’s position as untenable and top Conservatives suggesting he may be required to answer additional questions.
Allies of Tory chair Nadhim Zahawi believe he has “absolutely no intention” of resigning after it was revealed he settled a dispute with HMRC for millions of pounds.
Downing Street has expressed the senior minister’s (pictured) confidence in Rishi Sunak.
Mr. Zahawi confessed on Saturday that he had given back money to the taxman after making an error; however, he did not address charges that he had to pay back up to £4.8million, including a significant penalty over his shareholdings in polling company YouGov.
He disputed charges that he dodged taxes by holding YouGov shares through an offshore corporation registered in Gibraltar.
Tim Loughton, a former minister, said yesterday night on BBC Radio 4’s Westminster Hour, “I think it’s fair to let him (Mr. Zahawi) have his say and present his case.” It would have been more beneficial if he had done that earlier and more thoroughly.
Mr. Loughton replied, ‘I do not know if Nadhim has done anything unwise or improper.
According to the sounds of things, he has not committed any unlawful acts; otherwise, there would be greater repercussions.
If there is more to it, he will be forced to take responsibility and face the consequences, and I am confident that the Prime Minister will take proper measures.
However, at this time we do not know the entire story.
Other Tories, including the former party leader Iain Duncan Smith, have cautioned Mr. Zahawi to disclose additional details.
Lord Young of Cookham stated on Times Radio, “I believe that Nadhim will need to be more forthcoming about precisely what transpired, or else the story won’t go away.”
He continued, “Normally, a Cabinet minister, especially one as wealthy as Nadhim, would have some really professional, reputable accountants handling all his tax affairs, ensuring that you didn’t get into the sorts of problems we are seeing.”
Mr. Zahawi did not accept founder shares when he established YouGov, stating in his Saturday statement that his father received shares “in exchange for some capital and his invaluable counsel.”
Twenty-one years later, when I was appointed chancellor of the Exchequer, inquiries were raised regarding my tax affairs. At the time, I discussed this with the Cabinet Office.
“After conversations with HMRC, they agreed that my father was entitled to YouGov founding shares, but they differed on the precise allotment. They decided that this was a “non-intentional and careless” error.
To be able to focus on my life as a public servant, I elected to resolve the dispute and pay what they demanded, which was the proper course of action.
Mr. Zahawi stated that HMRC concurred that he had never established an offshore structure, including Balshore Investments, and that he was not the beneficiary of Balshore Investments.
He claimed that the situation had been settled and his tax affairs were “up to date” when Mr. Sunak chose him as chairman of the Conservative Party in October.
Sources emphasized that there was no “negotiation” with HMRC, and that Mr. Zahawi simply instructed his accountants to pay the requested amount to settle the problem.
The Sun on Sunday reported that YouGov’s founder, Mr. Zahawi, had been nominated for a knighthood in the recent honours process, but did not make the final cut.
A source close to the former vaccinations minister stated, ‘Nadhim is very proud to have overseen the UK’s vaccine deployment and the reopening of schools during the Omicron outbreak.
And it was the greatest honor of his life to plan the funeral of Her Majesty while working in the Cabinet Office. He served his nation because he loved it, and that is reward enough.’
A Westminster source acquainted with the procedure told MailOnline, ‘These faceless apparatchiks randomly bestow upon themselves every honor under the sun.
‘However, when someone leads the only two accomplishments of the State in recent memory, vaccines and Her Majesty’s burial, some pen-pusher decides to obstruct acknowledgement of genuine achievement on account of a technical accounting problem. It is disgraceful.
His Cabinet colleague James Cleverly vowed yesterday that he will not be fired despite the increasing scandal.
Mr. Zahawi is said to have paid a seven-figure payment to the tax authorities when Chancellor at the end of Boris Johnson’s term in office.
Asked if Mr. Zahawi would survive till Wednesday’s Prime Minister’s Questions, the Foreign Secretary told Sky News, “Yes, because he is a very, very effective minister and a successful businessman before entering politics.” However, Mr. Cleverly was ridiculed for claiming in a subsequent interview that he was unaware of Mr. Zahawi’s circumstances because he had spent the previous day “shopping.”
A former first permanent secretary of HMRC stated that the taxman utilized a traffic-light system to alert the government of any potential concerns associated with granting a knighthood to an individual with tax issues. Sir Edward Troup told the BBC, “They do not decide whether an honor or peerage is bestowed; rather, they provide information to those who make the decision, who then form their own opinion.”
Increasing calls have been made for ministers to submit their tax returns, as is customary for presidential candidates in the United States.
However, Mr. Cleverly stated, “Taxes are a private matter.” I am aware that, as politicians, we are held to a higher standard of transparency than other individuals.’
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