TIMES.KY

Cayman Islands, Caribbeanand International News
Tuesday, Jan 31, 2023

Labour calls for Nadhim Zahawi to be sacked over tax claims

Labour calls for Nadhim Zahawi to be sacked over tax claims

The Tory Party chair is facing fresh questions about claims he tried to avoid paying millions in tax, just as Rishi Sunak and his wife did anyway.
Labour is calling for Rishi Sunak to sack Nadhim Zahawi as Conservative Party chairman after reports he paid a penalty to HMRC as part of a multi-million pound tax settlement.

The ex-chancellor has been under pressure over claims he tried to avoid tax and has now had to pay it back.

Labour deputy leader Angela Rayner said Mr Zahawi's position was "untenable" and the prime minister must sack him.

The BBC has approached Mr Zahawi for comment on the latest allegations.

Ms Rayner said: "Nadhim Zahawi's story doesn't add up.

"The position of the man who was until recently in charge of the UK's tax system and who this prime minister appointed Conservative Party Chair is now untenable.

"It's time for Rishi Sunak to put his money where his mouth is and dismiss Nadhim Zahawi from his cabinet."

The company at the centre of the row is Balshore Investments, which is registered offshore in Gibraltar.

Mr Zahawi has faced questions over whether he used Balshore to hold shares in YouGov, the polling company he co-founded in 2000 - something he has always denied.

Labour have called for an explanation. According to The Guardian, he has had to pay back the tax he owed with a 30% penalty and the total amounts to £4.8m.

The BBC has been unable to verify that figure, but when the Guardian asked repeatedly about the penalty, Mr Zahawi's spokesperson did not deny one had been paid.

When pressed on the total amount, which was thought to include the alleged penalty, the spokesperson said: "Nadhim Zahawi does not recognise this amount … as he has previously stated, his taxes are properly declared and paid in the UK."

The BBC has discovered that Balshore Investments was also registered as a "beneficial owner" of a UK crowdfunding firm called crowd2Fund for three years.

Under transparency rules brought in by the coalition government in the UK, the firm should have made public who was personally in charge.

That is because Balshore owns more than 25% of Crowd2Fund's shares.

Although it is based in Gibraltar where beneficial owners can remain hidden, the UK requires this information to be made public.

Balshore was described as the "family trust of Nadhim Zahawi, an executive director of YouGov", in the polling firm's 2009 annual report.

But the Conservative Party chairman has denied benefiting from or having any involvement with the company.

A spokesperson for Mr Zahawi said it was a matter of public record that Balshore Investments is owned by his father, hence the YouGov reference to his family.

In June 2020, Crowd2Fund told Companies House that its Gibraltar-based shareholder had in fact ceased to be a beneficial owner in April 2016.

Companies are supposed to update these details within 14 days. But Crowd2Fund appears to have taken four years to register the information.

In June last year, Nadhim Zahawi's parents were personally recorded as beneficial owners of Crowd2Fund which indicates they now control the Gibraltar firm.

However, Balshore Investments has owned more than 25% of Crowd2Fund's shares since at least 2015.

That leaves a gap in the register explaining who ultimately benefited from the shareholding prior to June 2022.

BBC News asked both Crowd2Fund and Balshore Investments to explain what happened and if they would now disclose who the beneficial owners of Balshore were for the relevant period.

They were also asked if they accepted they may have broken the law if they failed to file the correct information with Companies House.

Neither Balshore Investments or Crowd2Fund has so far responded to requests for comment.

A spokesman for Mr Zahawi has previously said his taxes are "properly declared and paid in the UK" and the minister "has never had to instruct any lawyers to deal with HMRC on his behalf".
Newsletter

Related Articles

TIMES.KY
Close
0:00
0:00
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
UK chaos: Hong Kong emigrants duped by false prospectus
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
If a country is denied the right to independence by another, it is not in a union. It is in a dictatorship.
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Ronaldo's new contract...
Prince William's godmother resigns honorary royal role after exposing her/their racism
British PM Rishi Sunak pledges further action on strikes to 'protect lives'
Tax fraud verdict again exposes illusion of Trump the master businessman
Tax fraud verdict again exposes illusion of Trump the master businessman.
Double standards: UK lawmakers attack EU chief over Ireland claims
×