Former UK chancellor Nadhim Zahawi’s position ‘untenable’ after tax dispute, says Labour
- The former chancellor has been under pressure since it was reported that he paid HM Revenue & Customs a seven-figure sum to end a dispute
- Zahawi allegedly avoided tax by using an offshore company registered in Gibraltar to hold shares in YouGov, the polling company he co-founded
British Conservative Party chairman Nadhim Zahawi’s position is “untenable”, opposition Labour MPs said after reports that he paid a penalty as part of a multimillion-pound tax settlement.
The former chancellor, who attends Rishi Sunak’s Cabinet, has been under pressure since it was reported that he paid HM Revenue & Customs a seven-figure sum to end a dispute.
Deputy Prime Minister Dominic Raab defended his colleague, saying Zahawi “has been very clear that he’s paid all the tax that he’s owed” and “if there’s further questions … I’m sure there’ll be the proper transparency”.
Labour called for an explanation after The Guardian newspaper reported that Zahawi paid a 30 per cent penalty, taking the estimated total tax bill to more than £4.8 million (US$5.9 million).
Zahawi’s team has been contacted for comment on the latest allegation.
Labour deputy leader Angela Rayner told BBC Breakfast: “The fact that Nadhim hasn’t been out on the airwaves explaining himself, to me, adds insult to injury, especially given that he called this smears at the time and sent legal letters to those that asked questions legitimately about it.
“And when you’re the chancellor, who is in charge of the tax affairs of the UK, and you’ve got a wealth of that nature, you would be expected to know about your tax affairs or to seek that advice at the time, as opposed to not paying those taxes and having to pay a penalty notice.
“I believe his position is untenable. If he’s lied and misled the public and HMRC regarding his tax affairs then I think his position is untenable.”
