Rishi Sunak was warned of reputational threat from Zahawi’s tax affairs: Report

UK PM Rishi Sunak was advised there could possibly be a reputational threat to the federal government from Nadhim Zahawi’s tax affairs when he appointed him as Conservative social gathering chair in October, studies mentioned. Downing Street has denied the claims, insisting Rishi Sunak was “not informed of these details”.

New Delhi,UPDATED: Jan 29, 2023 09:06 IST

Britain’s Prime Minister Rishi Sunak leaves 10 Downing Street to go to the House of Commons for his weekley Prime Minister’s Questions in London (Photo: AP/File)

By India Today Web Desk: UK Prime Minister Rishi Sunak obtained casual recommendation in October that there could possibly be a reputational threat to the federal government from Nadhim Zahawi’s tax affairs, reported The Observer newspaper, citing sources. The authorities officers are mentioned to have given the brand new prime minister casual recommendation as he drew up his cabinet in October, relating to the dangers from a Her Majesty’s Revenue and Customs (HMRC) investigation settled solely months earlier, the report mentioned.

A row erupted over Zahawi’s tax affairs after he admitted final week to paying a seven-figure tax settlement whereas serving as Chancellor.

Rishi Sunak had come beneath hearth for his resolution to nominate Zahawi as Tory chairman. Sunak insisted that he wasn’t conscious that the Tory social gathering chairman paid a penalty to settle a tax dispute and in addition ordered an investigation into Zahawi’s tax affairs owing to the mounting stress from the Opposition.

“I’ve asked our independent adviser to get to the bottom of everything, to investigate the matter fully and establish all the facts and provide advice to me on Nadhim Zahawi’s compliance with the ministerial code,” Rishi Sunak was quoted as saying by the BBC.

ALSO READ | UK PM Rishi Sunak wasn’t conscious of Tory social gathering chief’s tax affairs: Report

Sunak advised MPs on Wednesday that the “usual appointments process was followed” and “no issues were raised with me when [Zahawi] was appointed to his current role”.

In October, Sunak was warned that the tax concern concerned a big sum of cash and was not a trivial accounting error, the report mentioned.

Meanwhile, Downing Street has strongly denied the declare that Sunak was warned of the danger.

A No 10 spokesperson mentioned: “These claims are not true. The prime minister was not informed of these details, informally or otherwise.”

Scandal-hit Zahawi has been going through calls to resign after it emerged he paid a penalty over beforehand unpaid tax whereas he was chancellor. The tax row pertains to this potential breach of the ministerial code by the Conservative Party chairman.

Zahawi is believed to have approved HMRC to debate his settlement – estimated to be value £4.8m together with the penalty – with the ethics inquiry, The Guardian reported. The tax was associated to a shareholding in YouGov, the polling firm he co-founded in 2000 earlier than he grew to become an MP.

ALSO READ | UK PM Rishi Sunak orders probe into tax scandal-hit Tory chief Nadhim Zahawi

Published On:

Jan 29, 2023