Advertisement

British PM Sunak fires Party chairman Zahawi over US$6million tax affairs row

  • Nadhim Zahawi, who was appointed to the role by the PM last October, had been facing calls to stand aside after an ethics inquiry
  • The Tory chairman faced damaging reports he had settled a nearly US$6 million revenue bill while he was chancellor, including paying a penalty

Reading Time:3 minutes
Why you can trust SCMP
4
Former Conservative Party chairman Nadhim Zahawi leaves the party’s head office in Westminster, central London after being fired. Photo: AP

British Prime Minister Rishi Sunak has sacked Conservative Party chairman Nadhim Zahawi after an ethics inquiry into the handling of his tax affairs found a “serious breach” of the rules guiding ministers.

Advertisement

Zahawi, who was appointed to the role by the prime minister last October, had been facing calls to stand aside after Sunak ordered the inquiry into the former chancellor’s taxes.

The Tory chairman had faced damaging reports that he had settled an estimated 4.8-million-pound bill (US$5.9-million) with the HM Revenue & Customs tax office while he was chancellor, including paying a penalty.

Pressure on ministers grew after HMRC boss Jim Harra told lawmakers there are “no penalties for innocent errors in your tax affairs”.

The rapid conclusion of the ethic investigation by Sir Laurie Magnus, the prime minister’s independent adviser on ministers’ interests, came after Sunak resisted calls to sack his party colleague immediately and instead stressed the need for “due process”.

Advertisement

But in a letter published on Sunday morning and following the Magnus inquiry, Sunak told Zahawi that he believed he had committed a “serious breach of the Ministerial Code”.

Advertisement