Rishi Sunak has never paid a tax penalty, says Downing Street
Downing Street has said that Rishi Sunak has never paid a tax penalty – unlike Nadhim Zahawi.
The Prime Minister is facing mounting pressure from the opposition benches, as well as several Conservative MPs, to sack Mr Zahawi after it was reported that the Tory chairman settled a multi million-pound bill with the taxman while chancellor.
Mr Zahawi has implied that his payment to HM Revenue and Customs (HMRC) included a penalty for a “careless and not deliberate” error.
Mr Sunak has asked Sir Laurie Magnus, his independent adviser, to investigate whether any ministerial rules have been broken.
Earlier, Number 10 was not forthcoming when asked whether Mr Sunak has ever paid a penalty to the taxman.
His press secretary told journalists: “You wouldn’t expect me to get into the Prime Minister’s tax affairs – they are confidential. The tax affairs of an individual, irrespective of who they are, are confidential.”
However, a No 10 spokesman later said: “The Prime Minister has never paid a penalty to HMRC.”
Nadhim Zahawi tax affairs a ‘gift’ to Labour
Downing Street was also unable to say Mr Sunak is confident that no more damaging surprises will emerge about Mr Zahawi’s tax affairs.
The Prime Minister’s press secretary said: “I don’t think any of us can predict what may come up, but I think he’s confident now he’s put the right process in place and the independent adviser is looking into it.”
The row over Mr Zahawi’s tax affairs has been described as “a gift” to the Labour Party, and formed a key part of the heated exchange between Sir Keir Starmer, the Labour leader, and Mr Sunak at Prime Minister’s Questions on Wednesday.
Sir Keir suggested it would be “fairly obvious” to anybody watching that “someone who seeks to avoid tax can’t also be in charge of tax”.
But Mr Sunak stuck by his decision to wait for the investigation to conclude, accusing Labour of “simple political opportunism” and insisting it was right to “establish the facts”.
“Of course, the politically expedient thing to do would be for me to have said this matter must be resolved by Wednesday at noon, but I believe in proper due process,” he said.
Mr Zahawi believes he “hasn’t done anything wrong”, according to a Tory MP who spoke to the embattled minister on Tuesday, but there is a growing sentiment on both sides of the House that his position is becoming untenable.
Reports that Mr Zahawi agreed to pay HMRC about £5 million, including around £1 million in a penalty, have not been denied by his press team.
