Tory leadership hopeful Nadhim Zahawi's tax affairs are being investigated by HMRC, according to reports.
An inquiry by the National Crime Agency (NCA) into Mr Zahawi's finances was launched in 2020, after which HMRC became involved, reports The Independent. A senior Whitehall source told The Independent that the tax investigation is currently “unresolved”, while reports state that Boris Johnson and the Cabinet Office were previously informed of the investigations.
Additionally, The Observer reports that a “flag” was previously raised over his financial affairs but Mr Zahawi was appointed as Chancellor by Mr Johnson regardless. A source told the paper: “It’s extraordinary that flags were raised ahead of Nadhim’s appointment by the Downing Street proprietary team.
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“These sorts of concerns would stop someone receiving an MBE or OBE. The idea he could be chancellor or even prime minister is unbelievable”.
The NCA's International Corruption Unit probed Mr Zahawi's financial dealings, before they began working alongside HMRC and the Serious Fraud Office (SFO) in a "detailed investigation". Reports state that the HMRC's unit responsible for issues relating to offshore tax is conducting the investigation.
When approached for comment by The Independent, a spokesperson for Mr Zahawi said: “All Mr Zahawi’s financial interests have been properly and transparently declared. Mr Zahawi is not aware of any formal investigation by HMRC. His taxes are fully paid and up to date. He will provide full information to any queries that HMRC have about his tax affairs.”
A Downing Street spokesperson added: “The usual pre-appointment declarations were made by the minister and any necessary checks completed.”
Mr Zahawi, who became Chancellor of the Exchequer earlier this week, launched his party leadership bid on Saturday (July 9). The current Chancellor pledged to lower taxes for individuals, families and business, boost defence spending, and continue with education reforms that he started in his previous role.
He has had something of a tumultuous week – first being promoted to Chancellor following Mr Sunak’s resignation on Tuesday, then defending Boris Johnson during a broadcast round on Wednesday, before publicly calling for him to stand down on Thursday morning. In his bid for leader, he said: “My aim is a simple one: to provide the opportunities that were afforded to my generation, to all Britons, whoever you are and wherever you come from. To steady the ship and to stabilise the economy.”
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