Nadim Zahawi’s latest tax: HMRC suggests Tory chairman did ‘no innocent mistake’ because Sunak is ‘angry’

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Starmer says failure to sack Zahawi shows PM ‘hopelessly weak’

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During the ongoing row over Nazem Al-Zahawi’s tax affairs, the head of HMRC said that “there are no innocent mistakes” when it comes to tax penalties.

James Harrah, chief executive of HMRC, told MPs on Thursday: “If you take reasonable care, but nevertheless err, while you will be liable for tax and interest if paid late, you will not be liable for any penalty.

“But if your fault was due to negligence, the legislation says that a penalty can be applied in the circumstances.”

The row surrounding Zahawi centers on a tax bill over the sale of shares in YouGov, the polling firm he co-founded.

Rishi Sunak — who ordered his ethics adviser to investigate Zahawi’s tax settlement — is said to be “angry” with his cabinet minister over the saga, according to The Times.

The prime minister has not spoken to his party chief since he revealed details of a settlement with HM Revenue and Customs at the weekend.

Key PointsShow last updated 1674637912

Good morning, and welcome to The Independent’s live political coverage.

We’ll keep you updated throughout the day as Nadim Al Zahawi faces pressure to resign over a row over his tax arrangements.

Stay tuned for the latest news and PMQs at midday.

Matt Mathers Jan 25 2023 09:11

Recover: Who is Nadim Al Zahawi?

My colleague Joe Somerlad reports that an Iraqi refugee who arrived in Britain at the age of nine without an Englishwoman climbed into No. 11 Downing Street and backed a faltering Boris Johnson administration last summer, but got himself into a tax scandal.

Read the full article here:

Matt Mathers Jan 25 2023 09:13

1674638217 Tell us how much you owe the tax man, so voters told Al-Zahawi

Roughly two in three Britons want Conservative Party chairman Nazim Zahawi to say how much it takes to settle his tax dispute with HMRC, according to a poll by The Independent.

About 64 percent of people — including 61 percent of Conservative voters — say Zahawi should disclose exactly how much he has handed over, according to the Savanta ComRes survey.

Our political correspondent Adam Forrest says:

Matt Mathers Jan 25 2023 09:16

1674638500 Is your age about to get rid of Zahawi? Tory MPs say the prime minister risks appearing “indecisive” over the tax row

Just a week ago, the Prime Minister was defending Mr Zahawi in the House of Commons. But as pressure mounted on Sunak, Downing Street declined to say it was confident Zahawi had always been honest about his financial situation.

Reporting by Kate Devlin, politics editor and Adam Forrest, political affairs reporter:

Matt Mathers Jan 25 2023 09:21

Sunak and Starmer to address the crisis of PMQs

The first two PMQ sessions of 2023 followed largely the same pattern: Starmer attacking Sunak on public sector strikes and responding to the case of the NHS and the Prime Minister by claiming that the Labor leader opposes the government’s anti-strike legislation because he is taking part. Union pocket.

Many of these controversies remain unresolved, and with more strikes planned in the coming weeks, there is every chance Sunak will be dealt with in industrial proceedings by Starmer again when the pair appear before MPs in the House of Commons later for the third round.

But today’s exchanges in the room will almost certainly take on a different feel after the Labor leader gifted extra ammunition in the form of a scandal over Conservative Party chairman Nadim Zahawi’s tax affairs, which shows absolutely no signs of dying first thing on Wednesday morning.

Matt Mathers Jan 25 2023 09:24

Report: 1674640569 House officials were unaware of Zahawi’s tax dispute

Rishi Sunak was not informed of Nadeem Zahawi’s tax dispute when he appointed him to the Cabinet because British government officials were unaware of it, it was alleged.

Al-Zahawi, a minister without portfolio, was cleared by government officials of the position of chairman of the Conservative Party under Sunak after he became prime minister.

But according to The Times, neither he nor Liz Truss – his predecessor – were informed of Zahawi’s dispute with HMRC.

Mr Al Zahawi served as Liz Truss’ Minister for Equality during Ms Truss’s short time at 10 Downing Street. He served briefly as an advisor in the final days of Boris Johnson’s government.

A government source suggested to The Times that Simon Case, the cabinet secretary, should have briefed both Sunak and Truss about the potential liability of keeping Zahawi in the cabinet.

But another said, “They were not aware of the fine because the Human Resources Department did not tell them.”

Matt Mathers Jan 25 2023 09:56

1674642306 Zahavi should “take into account his position,” says Nazir Toure

Lord Hayward, an influential Tory peer, said Mr Zahawi “should consider whether to step aside for the period of the inquiry” – warning that the saga could help the “flatline” of Tory popularity ahead of local elections, our political correspondent Adam Forrest reports. .

Lord Hayward, a Tory pollster, told Sky News: “I think there’s a difficulty in being party leader because you’re supposed to be there galvanizing campaigners in preparations for key local elections.”

Matt Mathers Jan 25 2023 10:25

1674643532 PMQs ‘uncomfortable’ if Zahawi does not resign, says ex-minister

Former Conservative Party minister David Gauke told BBC Radio 4’s Today programme: “It’s hard to see how this doesn’t end in the end. [Mr Zahawi’s] Resignation,” reports Adam Forrest, our political correspondent.

He said it would be “extremely annoying” to Mr Sunak if he was still in office at 12 noon.

It is widely expected that Labor leader Keir Starmer will use at least some of his questions during the PMQ sessions to address Sunak on the issue.

Matt Mathers Jan 25 2023 10:45

1674644576 What is the Conservative Party calling for Zahawi to withdraw?

The prime minister, who has ordered his ethics adviser to investigate whether Mr Zahawi breached ministerial rules, is also under pressure to act, after admitting there were “questions that need answering”.

Who called Mr. Zahawi to resign? Our political correspondent Adam Forrest reports:

Matt Mathers Jan 25 2023 11:02

1674646356 Rishi Sunak welcomes ‘allies and friends’ dispatch of tanks to Ukraine

Prime Minister Rishi Sunak has welcomed moves by “NATO allies and friends” to send battle tanks to Ukraine.

His comments came after Germany confirmed it would send Leopard 2 tanks to Kyiv.

“The right decision by NATO allies and friends is to send main battle tanks to Ukraine. Together with the Challenger 2, it will enhance Ukraine’s defensive firepower.”

“Together, we are accelerating our efforts to ensure that Ukraine wins this war and secure a lasting peace.”

Matt Mathers Jan 25 2023 11:32

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