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
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
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
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
×