My workers demand an investigation into the tax issue of Nazem Al-Zahawi | Nadim Zahawi

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The Labor Party has called for an investigation into whether Nadim Al-Zahawi broke ministerial law or misled the public about his tax affairs during his time as a consultant.

Anneliese Dodds, the Labor leader, wrote to Rishi Sunak on Wednesday saying there should be an investigation if Zahawi, the Conservative party chairman, does not fully explain why he paid millions of pounds in taxes to the HRC.

Sunak was pressed about Zahavi’s tax affairs in the Prime Minister’s Questions, telling MPs that the Tory minister had “really addressed this in its entirety”.

The Prime Minister was asked by Labor MP Alex Sobel if he was aware of any questions from HMRC when he appointed Zahawi to his cabinet and as Chairman of the Conservative Party.

“Is the prime minister demanding that his cabinet members be accountable for their tax affairs?” Asked.

Sunak’s spokesperson said Zahawi “spoke and was transparent with HMRC”, although he declined to answer specific questions. She added, “I don’t know if the prime minister has reviewed it completely, but I do know that he takes Nadim Al-Zahawi at his word.”

When asked if Sinnak was confident that he knew everything he needed to know about the issue, she replied “yes” and said he fully trusted Zahawi.

Al-Zahawi did not deny a report in The Sun newspaper on Sunday that he had paid millions in taxes related to his business interests to HMRC, after questions were raised about whether he should pay capital gains tax on his founding stake in YouGov. This was held and sold when it was valued at around £20m in 2018 by Gibraltar-based Balshore Investments, ultimately owned by his parents.

But Al Zahawi’s spokesman said on Wednesday: “Mr Al Zahawi’s tax affairs were and remain fully up-to-date and paid for in the UK. Neither he nor his immediate family are beneficiaries of Balshore Investments or any associated credit.

“Mr Al Zahawi always said he would answer any questions from HMRC, which he always did.”

It is not clear if Al-Zahawi contacted the Human Resources Department to announce that a lower amount had been paid, or that the tax authorities launched an investigation, and whether any penalties were applied. It is also not known whether a formal investigation by HMRC has been launched and whether Zahawi was in any discussions with the tax authorities when he was a consultant from July to September last year.

Dodds said the allegations about Zahawi are “extremely troubling,” especially in light of his claim in July last year that he had paid his taxes in full.

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“If he is not forthright with the British people, or with HMRC, he has no place in government,” she said. “What is even more concerning is that Rishi Sunak, the man who promised honesty, integrity and accountability on the 10 Steps, was happy to appoint Nadeem Al-Zahawi to his cabinet. Al-Zahawi needs to disclose his tax affairs. Sunak must explain what he knows about this investigation and when.”

In her letter to Sunak, Dodds asked him to confirm publicly that the Cabinet Office had raised a “red flag” when Zahawi was appointed adviser in the summer because of his tax affairs, and asked what assurances the government had received from Zahawi at that point. .

Dodds also pressured Sunak to say whether Al-Zahawi had provided answers about how much he agreed to pay HMRC, why he claimed to have paid his taxes in full, and when he learned of HMRC’s interest in his tax affairs, among other questions.

If no answers are given to these questions, can you confirm that a full ministerial investigation will be conducted to determine whether Mr Zahawi misled the British public and breached ministerial law? And if this inquiry found that he did, would you remove him from the post immediately? ” I wrote.

Al-Zahawi has been reached for comment.

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