The Labor Party has called on the Prime Minister to sack Tory Speaker Nadim Zahawi. He reportedly paid millions of dollars to settle disputes over taxes.
The former prime minister, who will be in Rishi Sunak’s cabinet, has been under pressure since the Sun revealed the tax controversy on Sunday. He allegedly avoided taxes by using an offshore company registered in Gibraltar to hold a stake in YouGov, a polling firm he co-founded.
Labor demanded an explanation after The Guardian newspaper reported on Friday that Zahawi had paid HM Revenue & Customs (HMRC) a seven-figure amount, a 30% penalty.
According to the government website, fines of 0-30% will be imposed if caused by lack of reasonable care. Intentional errors can result in penalties of 20-70%.
Labor Deputy Leader Angela Rayner said Friday:
“The story of Nadim Zahawi is boring.
“The time has come for Rishi Sunak to unanimously pay for Nadim Zahawi to be removed from the cabinet.”
Speaking to the BBC on Saturday, Rainer said: He legitimately questioned it.
“And if you are the prime minister in charge of UK tax affairs and you have wealth of that nature, you are expected to know your tax affairs or to seek that advice at that time. As opposed to not paying taxes and having to pay fine notices.”
She added: If he lied and misled the public and his HMRC regarding his tax affairs, I think his position is untenable. “
“correct and proper”
Deputy Prime Minister Dominic Raab defended Zahawi.
He told Sky News:
Raab was asked if he believed Zahawi would be open and honest about his tax affairs.
Raab said when asked if Zahawi would stay in the position after a month. I certainly hope so. “
He added: So, I think this is the key point, but if you have further questions, I’m sure there is of course appropriate transparency. “
But Labour’s shadow prime minister, Rachel Reeves, rejected Raab’s defense of Zahawi.
After speaking at the Fabian Society, she said: [$1.24 million] Penalties for not paying taxes on time. That is typical of this conservative cabinet.
“A few months ago he was Chancellor of the Exchequer.
“So if the prime minister wants to stay true to his commitment to integrity, integrity and professionalism, he must do the right thing and remove Nadim Zahawi.”
“Special treatment”
Zahawi’s spokesman previously said his taxes were “properly declared and paid in the UK” and the minister “did not have to direct lawyers to deal with HMRC on his behalf”. said.
Snack defended him, saying in a prime minister’s question on Wednesday that Zahawi had “already fully addressed the issue and there is nothing I can add.”
A prime minister’s spokesman said Mr Zahawi “had spoken to HMRC and remained transparent”.
As to whether Sunak believes the issue has been resolved, she said:
A spokesperson for HMRC said it could not comment on identifiable taxpayers.
Labor has suggested an inquiry may be required to look into the matter, and the party has now submitted a series of questions to HMRC seeking clarification of the allegations.
In the letter, Rayner said: But given the public interest in this case and the serious questions raised about potential conflicts of interest at the heart of government, the public wants answers.
“In particular, there seems to be an element of special treatment by HMRC towards Nadhim Zahawi,” she claimed.
PA Media contributed to this report.
