Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Labour accuses Sunak family of avoiding tens of millions in taxes

Labour accuses Sunak family of avoiding tens of millions in taxes

Chancellor obfuscated while imposing steep tax rises on ordinary Britons, says shadow minister
Rishi Sunak and his family potentially avoided paying tens of millions of pounds in taxes through his wife’s “non-dom” status while the chancellor imposed tax rises on the public, Labour has said.

The chancellor’s wife, Akshata Murty, gave in to mounting pressure on Friday, announcing she would pay UK taxes as Sunak’s position began to appear increasingly tenuous.

Murty said she understood that many felt her tax arrangements were not “compatible with [her] husband’s job as chancellor”, adding that she appreciated the “British sense of fairness”. She will pay tax on all future worldwide income and for the last tax year, but not on backdated income.

Louise Haigh, the shadow transport secretary, accused Sunak of failing to be transparent about his family’s financial arrangements while raising taxes for millions during a deepening cost of living crisis. Haigh said that while it was “clear” the arrangement was legal, many Britons would be questioning the ethics involved.

“The chancellor has not been transparent. He has come out on a number of occasions to try and muddy the waters around this and to obfuscate,” she told BBC Radio 4’s Today programme.

“It is clear that was legal. I think the question many people will be asking is whether it was ethical and whether it was right that the chancellor of the exchequer, whilst piling on 15 separate tax rises to the British public, was benefiting from a tax scheme that allowed his household to pay significantly less to the tune of potentially tens of millions of pounds less.”

The Guardian estimates that Murty has potentially avoided about £20m in tax because of her status, for which she currently pays £30,000 a year.

Under non-dom rules, Murty did not legally have to pay tax in the UK on the estimated £11.5m in annual dividends she collects from her stake in Infosys, her billionaire father’s IT business. UK tax residents would be expected to pay about £4.5m in tax on the dividend payment.

In a press conference on Friday, Boris Johnson admitted he had not been told about Murty’s non-dom status. But he denied anyone at No 10 was briefing against the Sunaks, and praised the chancellor for doing an “outstanding job”.

Haigh’s remarks follow calls from Labour and the Lib Dems for an investigation into whether Sunak breached the ministerial code by failing to be transparent. Under pressure, the chancellor on Friday confirmed he had a US green card – meaning he had declared himself a “permanent US resident” for tax purposes for 19 months while he was chancellor and for six years as an MP.

A source confirmed Murty also held a green card. This admission appears to weaken Sunak’s defence of his wife being a non-dom because she one day planned to return to live in India.

Furthermore, despite bowing to pressure to pay UK tax on future income and for the last tax year, Murty will retain her non-dom status. This could in future allow her family to legally avoid paying inheritance tax.

Amid these calls for further scrutiny of the chancellor’s tax arrangements and financial interests, Sunak was defended by Kevin Hollinrake, the Tory MP for Thirsk and Malton in North Yorkshire.

Hollinrake denied allegations of Murty’s non-dom status being a “tax dodge”, arguing that Conservative and Labour governments had both used non-dom status in policy to attract wealthy people to the UK.

Speaking on the Today programme, Hollinrake said: “This is not a tax dodge. It is a deliberate policy to attract wealthy people from other countries around the world to the UK on the basis that they create jobs and create wealth in the UK that benefits everybody.”

The Guardian has learned that just days before Sunak raised national insurance contributions, affecting millions of people, the Treasury introduced a new low-tax scheme that is partly devised to benefit some wealthy non-dom investors.

Hollinrake went on to defend Sunak for continuing to hold a green card and for paying taxes in the US even after he became chancellor, saying that he needed one when he was working there.

He added that Sunak “then came to the UK and declared that position with the Cabinet Office”. “It doesn’t reduce his taxation in the UK at all. In fact with a green card you can often pay more tax,” he said.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Japanese Customer Sways from VW to BYD after “Unbelievable” Test Drive amid Dealership Expansion
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Pickles are the latest craze among Generation Z in the United States.
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
White House Eyes Budapest for Peace Talks
Cave Diving Beneath the Streets of Budapest
Another American Restaurant Chain Opens in Budapest
Hungarian Opposition Politician Supports Ukrainian Commander
Opposition Leader Threatens Media Outlets
American Airlines Adds New Flights to Budapest
F1 Hungarian Grand Prix Wraps Up
WhatsApp is rolling out a feature that looks a lot like Telegram.
U.S. Trade Representative says Washington still negotiating trade deals after court rules tariffs illegal
Von der Leyen says Europe drawing up 'precise' plans to send troops to Ukraine
Kremlin accuses Europe of hindering Trump’s peace efforts in Ukraine
×