Oh boy, Nadhim Zahawi's in a spot of bother! Looks like he's gonna have to pay the piper and cough up millions in taxes after a squabble over his family's finances. Not only that, but people have been asking questions about why he's been using an offshore company to hold shares in YouGov's polling firm. Yikes!
Sources close to the Conservative Party chair reckon he's paying up after questions arose about his use of an offshore company to hold shares in the polling firm he founded, YouGov.
A spokesperson for Zahawi declared last summer that he was unaware of any HMRC investigation. When asked about his tax affairs during the Conservative leadership contest, Zahawi declared that he was being wrongfully accused - but would answer to HMRC if they requested. As a recap, last summer Zahawi was eliminated from the race for PM with only 25 votes, yet still managed to score the position of chair of the Conservatives when Rishi Sunak took over as Prime Minister... somewhat of a new headache for Sunak.
Zahawi's denied ever getting any benefit from Balshore Investments, though YouGov have said it's one of his. Also, his shares in YouGov were held in the Gibraltar-registered family trust.
The former chancellor's also insisted he isn't a beneficiary of the trust. The YouGov stake via the trust was worth more than £20m when the polling firm was sold off by 2018 with the money going to a mystery recipient.
Tax Policy Associates, an expert thinktank, reckons that Balshore’s sale of YouGov shares should have incurred a capital gains tax bill in the region of £3.7m. When asked if Zahawi was coughing up millions to HM Revenue and Customs, his spokesperson stated that Mr Zahawi has made it crystal clear that his taxes are paid up and proper in the UK and that he's super proud of having built a British business, which is now multinational.
It was uncovered last year that officials had raised the alarm about Zahawi’s funds before he was appointed chancellor by Boris Johnson.
Civil servants from the Cabinet Office seemed to have tipped off Johnson about a potential HM Revenue and Customs "red flag" concerning Zahawi prior to his appointment. Nevertheless, Johnson still gave him the nod.