Nadhim Zahawi issues response to reported tax dispute
The Conservative Party Chairman's released a statement to clarify reports over a multi-million pound payment he made to HM Revenue and Customs
Last updated 21st Jan 2023
Nadhim Zahawi has defended his tax arrangements amid calls for him to be sacked as Conservative Party Chairman.
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 Mr 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".
He's issued a statement explaining why he was asked to make a payment by HM Revenue and Customs:
"As a senior politician I know that scrutiny and propriety are important parts of public life. Twenty-two years ago I co-founded a company called YouGov. I'm incredibly proud of what we achieved. It is an amazing business that has employed thousands of people and provides a world-beating service.
"When we set it up, I didn't have the money or the expertise to go it alone. So I asked my father to help. In the process, he took founder shares in the business in exchange for some capital and his invaluable guidance. Twenty one years later, when I was being appointed chancellor of the exchequer, questions were being raised about my tax affairs. I discussed this with the Cabinet Office at the time.
"Following discussions with HMRC, they agreed that my father was entitled to founder shares in YouGov, though they disagreed about the exact allocation. They concluded that this was a 'careless and not deliberate' error.
"So that I could focus on my life as a public servant, I chose to settle the matter and pay what they said was due, which was the right thing to do.
"Additionally, HMRC agreed with my accountants that I have never set up an offshore structure, including Balshore Investments, and that I am not the beneficiary of Balshore Investments. This matter was resolved prior to my appointments as chancellor of the duchy of Lancaster and subsequently chairman of the party I love so much. When I was appointed by the Prime Minister, all my tax affairs were up to date."
Labour have called for the Prime Minister Rishi Sunak to sack Mr Zahawi from his job.
The party's Shadow Chancellor, Rachel Reeves, says he must be fired:
"A few months ago ... he was chancellor of the Exchequer and responsible for Britain's tax affairs and tax collection, and we now find that he wasn't so keen to pay himself.
"So if the Prime Minister wants to stick by his commitment for integrity, honesty and professionalism, he should do the right thing and sack Nadhim Zahawi."