Budapest Post

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

Nadhim Zahawi did not make 'innocent error' with his tax, HMRC chief tells MPs

Nadhim Zahawi did not make 'innocent error' with his tax, HMRC chief tells MPs

Jim Harra, HMRC’s chief executive, told MPs on the Public Accounts Committee this morning that “there are no penalties for innocent errors in your tax affairs”.
It comes after Mr Zahawi admitted that "errors” in his tax affairs had been deemed “careless” by HM Revenue & Customs but the mistake was "careless" rather than deliberate.

Being careful to point out that he was not discussing anyone in particular, the chief executive of HMRC told MPs: "Carelessness is a concept in tax law. It can be relevant to how many back years that we can assess, can be relevant to whether someone is liable to a penalty and if so, what penalty they will be liable to for an error in their tax affairs.

"There are no penalties for innocent errors in your tax affairs. So if you take reasonable care, but nevertheless make a mistake, whilst you will be liable for the tax and for interest if it's paid late, you would not be liable for a penalty.

"But if your error was as a result of carelessness, then legislation says that a penalty could apply in those circumstances."

He pointed out, to laughter from MPs, that "innocent" was not the term used in legislation.

"If you have been careless in your tax affairs, and as a result of that carelessness have made a mistake, then you could be liable to penalty."

Tory chairman Mr Zahawi has faced calls to step down from his role despite releasing a statement on Saturday to "address some of the confusion about my finances".

He did not disclose the size of the settlement - reported to be an estimated £4.8 million including a 30% penalty - or confirm whether he paid a fine.

The row centres on a tax bill over the sale of shares in YouGov, the polling firm Mr Zahawi founded, worth an estimated £27 million.

The shares were held by Balshore Investments, a company registered offshore in Gibraltar and linked to Mr Zahawi's family.

Downing Street said it did not know last week that Mr Zahawi had paid a reported 30% penalty to HMRC.

Mr Zahawi has insisted he is "confident" he has "acted properly throughout" but Prime Minister Rishi Sunak has ordered an investigation by Sir Laurie Magnus, his independent adviser on ministers' interests, into whether he broke ministerial rules.

Mr Sunak was challenged about the scandal during Wednesday's PMQs, where Labour leader Sir Keir Starmer accused the PM of being too "weak" to sack Mr Zahawi.

Sir Keir asked: "Does the PM agree that any politician who seeks to avoid the taxes they owe in this country is not fit to be in charge of taxpayer money?"

Mr Sunak acknowledged that he had not been given the full picture about the Tory chairman's financial matters when he told MPs last week that Mr Zahawi had given a "full" account.

But he insisted that when he entered No10 and gave Mr Zahawi the job of Minister Without Portfolio "no issues were raised with me".

Downing Street declined to comment on remarks by HMRC chief executive Jim Harra at the Public Accounts Committee on Thursday, where he made clear that there are "no penalties for innocent errors" in an individual's tax affairs.

A spokesman for the PM referred reporters to Rishi Sunak's remarks in the Commons on Wednesday.

"The independent adviser will establish the facts and provide advice to the PM and then he will obviously consider next steps. I obviously can't pre-empt that. It is right that the independent adviser is allowed to continue with that work," 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
Munich Airport Reopens After Second Drone Shutdown
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
×