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The Independent

Nadhim Zahawi’s tax affairs: A timeline of how the controversy performed out

Questions have swirled round Nadhim Zahawi and his tax affairs in latest weeks however the row got here to a head in the previous couple of days – piling strain on the Tory chairman and forcing Rishi Sunak to deal with what he knew and when about the allegations.

The ongoing row centres on a tax bill over the sale of shares in YouGov, the polling agency Mr Zahawi based. The shares, value an estimated £27m, had been held by Balshore Investments, an organization registered offshore in Gibraltar and linked to Mr Zahawi’s household.

Right here is how the controversy has performed out:

– July 8 2022

Mr Zahawi, the Chancellor of the Exchequer, threatens to take authorized motion towards The Impartial after we requested him a collection of questions and inform him we deliberate to report that HMRC officers had been investigating his tax affairs.

– July 9 2022

The Independent reveals that HMRC was investigating Mr Zahawi and his tax affairs following inquiries made by the Nationwide Crime Company and Severe Fraud Workplace. The chancellor denies realizing about any inquiries made about his tax affairs.

The Observer newspaper later reviews {that a} “flag” was raised by Cabinet Office officers concerning the monetary affairs of the Tory MP earlier than he was promoted to the high-profile function of chancellor.

– July 11 2022

In an interview with Sky Information, Mr Zahawi stated that he was being “smeared”.

“I used to be clearly being smeared. I used to be informed that the Severe Fraud Workplace, the Nationwide Crime Company, HMRC, had been wanting into me. I’m not conscious of this. I’ve at all times declared my taxes – I’ve paid my taxes within the UK,” he stated.

– January 14 2023

The Solar on Sunday reviews that Mr Zahawi had agreed to pay a number of million kilos in tax to settle a dispute with HMRC.

A spokesman for the Conservative Social gathering Chairman says that his taxes are “correctly declared” and that he “has by no means needed to instruct any legal professionals to cope with HMRC on his behalf”.

“As he has beforehand said, Mr Zahawi’s taxes are correctly declared and paid within the UK.”

– January 18 2023

Mr Sunak and Downing Avenue defend Mr Zahawi over the allegations. At PMQs, Mr Sunak stated that the Tory chairman “has already addressed this matter in full and there’s nothing extra that I can add”.

No 10 additionally says that Mr Sunak has full confidence within the MP, having taken him “at his phrase” over the matter.

That very same day, Labour means that an inquiry is likely to be wanted into Mr Zahawi’s tax affairs, arguing that questions stay unanswered.

– January 19 2023

Labour writes to HMRC over Mr Zahawi’s tax affairs, claiming that the “public requires solutions”. HMRC says it can’t touch upon identifiable taxpayers.

– January 20 2023

The Guardian newspaper reviews that Mr Zahawi paid a 30 per cent penalty as a part of the dispute, with estimates that he paid £4.8 million in whole. Labour and the Liberal Democrats name on Mr Zahawi to be sacked.

– January 21 2023

Mr Zahawi admits paying a settlement to HMRC after a “careless and never deliberate” tax error associated to his father’s shareholding in YouGov. He stated that when he arrange the YouGov polling firm in 2000, his father took founder shares.

“Twenty one years later, once I was being appointed Chancellor of the Exchequer, questions had been being raised about my tax affairs. I mentioned this with the Cupboard Workplace on the time.

“Following discussions with HMRC, they agreed that my father was entitled to founder shares in YouGov, although they disagreed concerning the precise allocation. They concluded that this was a ‘careless and never deliberate’ error … I selected to settle the matter and pay what they stated was due, which was the best factor to do.”

Mr Zahawi stated the matter was resolved and “all my tax affairs had been updated” by the point he grew to become Chancellor of the Duchy of Lancaster final September.

– January 23 2023

Mr Sunak orders an ethics investigation into Mr Zahawi. No 10 stated the inquiry by new ethics adviser Sir Laurie Magnus will give attention to Mr Zahawi’s ministerial declarations nevertheless it may lengthen to his prior tax association and whether or not he lied to the media.

The PM acknowledged that “clearly on this case there are questions that want answering”. Mr Zahawi stays in put up, resisting calls to resign.

– January 24 2023

Tory MP Caroline Nokes, chairwoman of the Commons Girls and Equalities Committee, suggests Mr Zahawi ought to “stand apart till this matter is all cleared up”, amid ongoing strain on the get together chairman. Different Tory MPs say Mr Zahawi ought to resign to finish the “distraction” for the federal government.

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