Nadhim Zahawi latest: Former Tory chair calls on successor to ‘step aside’ in tax row

A former Conservative Party chairman has called on Nadhim Zahawi to “step aside” as his tax debacle is under investigation.

Sir Jake Berry commented on BBC Question Time that stepping aside would be the “right thing to do now”.

“The government must find a mechanism for ministers and MPs under investigation in this way to step aside, clear their names and then re-enter government when appropriate,” added Sir Berry .

Editorial: If he is to make any progress in the 18 months or so until the next general election, he needs a team he can rely on to stay out of trouble, implement policy and ‘deliver’.

Rishi Sunak has insisted he will wait for the results of the investigation into Nadhim Zahawi, despite HMRC chief Jim Harra saying there are “no penalties for innocent mistakes”.

Speaking to broadcasters at Checkers, the prime minister’s grace and favour, he said: “I’m not going to prejudge the outcome of the inquiry, it’s important that the independent consultant can do his job.

“That’s what he’s doing right now, that’s what I’ve asked him to do and I’m awaiting the findings of that investigation.”

The Tory chairman claimed he had “acted correctly” with his tax affairs and that officials had ruled his mistake “negligently and unintentionally”.

“If you are reasonably careful, but still make a mistake, while you are a taxpayer and paying interest, you are not liable for a penalty,” Mr Harra told the public accounts select committee on Thursday.

Chancellor Jeremy Hunt will dismiss the misplaced “gloom” over the outlook for the UK economy, saying Britain stands ready to take advantage of its Brexit “liberties” to become a new world leader.

In a keynote speech on Friday, Mr Hunt will deliver an optimistic message saying: “Declinism about Britain was wrong in the past and it is wrong today”.

But despite the optimistic tone, the chancellor is expected to continue to resist calls from some Tory MPs for tax cuts to boost economic growth.

Instead, he will say the UK should use the opportunities presented by the UK’s withdrawal from the EU to boost productivity while using the proceeds of growth to support public services.

Nadhim Zahawi has authorized HM Revenue & Customs to pass details of his tax affairs to the prime minister’s ethics adviser – who is investigating whether he has breached ministerial rules – while Rishi Sunak continued to resist calls to sack him.

Pressure on the Tory party chairman, who has admitted to paying a fine as part of a settlement estimated at £4.8 million with HMRC, mounted after the head of the organization said no such penalties were imposed for “harmless mistakes”.

A source close to Mr Zahawi said he has now given HMRC permission to speak to Sir Laurie Magnus, who is investigating whether his actions constituted a breach of the ministerial code of conduct.

Earlier, HMRC head Jim Harra, while testifying to MPs, said that while he was unable to comment on individual cases, there were “no penalties for innocent mistakes in your tax matters”.

At a cabinet day at Checkers – his country retreat of grace and favour – Mr Sunak said he would wait for Sir Laurie’s report before making any decisions, refusing to be spoken to when he learned his minister was taking the reportedly 30 per cent paid. penny fine.

An often heard refrain in Westminster, when decisions have to be made, is “you have to think about politics”.

In a democratic system, people need to be convinced – whether at the ballot box or in the voting lobbies – and the role of the marketing team ultimately belongs to senior politicians. You can, of course, state facts and present evidence, but people make political choices with more than a hint of emotion. Being too “smart” often goes against you.

Read Furvah Shah’s report.

Rishi Sunak is said to be “furious” at Nadhim Zahawi as the ramifications of the party chairman’s tax affairs continue.

The Prime Minister has not spoken to his party chairman since he revealed details of his settlement with HM Revenue and Customs last weekend, it has been reported.

He is said to be frustrated that his colleague did not initially disclose that he had paid a fine for tax evasion as part of a settlement estimated at £4.7 million.

The ongoing spat revolves around a tax bill over the sale of shares in YouGov, the polling agency Mr Zahawi founded. The shares, valued at an estimated £27 million, were held by Balshore Investments, a company registered off the coast of Gibraltar with links to Mr Zahawi’s family.

Here’s how the controversy played out:

The HM Revenue & Customs (HMRC) boss has said there are “no penalties for innocent misconduct” as he was questioned about the ongoing tax spat over Nadhim Zahawi.

Appearing before the Public Accounts Committee where he was due to discuss tax compliance and the pandemic, HMRC chief executive Jim Harra was pressed for some questions about the tax arrangements for the embattled Tory party chairman.

“Carelessness is a concept in tax law,” he said.

“It may be relevant for how many years back we can estimate, it may be relevant whether someone gets a fine and if so, what fine they get for an error in their tax affairs.

“There are no penalties for innocent mistakes in your tax affairs.

“So if you are reasonably careful, but still make a mistake, while you are a taxpayer and owe interest if it is paid late, you will not owe a penalty.

“But if your mistake was due to carelessness, then the law says a fine may apply in those circumstances.”