New UK finance minister defends himself over tax affairs

LONDON – Britain’s new finance minister, Nadhim Zahawi, yesterday defended himself against accusations about his tax affairs, after reports that he is subject to an investigation by the authorities.

The 55-year-old minister, appointed last week after Rishi Sunak’s resignation, is standing to replace Prime Minister Boris Johnson, who stepped down as Conservative party leader.

“I was clearly being smeared,” he told Sky News in an interview after claims emerged about a probe at the weekend.

“I was being told that the Serious Fraud Office that the National Crime Agency, that HMRC (Her Majesty's Revenue and Customs) are looking into me.

“I’m not aware of this,” he added, insisting: “I’ve always declared my taxes. I will answer questions HMRC has of me.”

Zahawi, who came to Britain as a refugee from Iraq, speaking no English before forging a successful career in business, made his political name overseeing Britain’s vaccines roll-out.

He promised that if he is elected Conservative leader and becomes prime minister, he will publish his accounts every year.

“That’s the right thing to do.”

Sunak, who oversaw huge government spending to keep businesses afloat during the pandemic, was long tipped as favourite to be Johnson's successor.

But he was forced to answer uncomfortable questions earlier this year, just as he was trying to push through tax rises, after it emerged that his wife was exempt from paying UK tax on her sizable overseas income.

It also emerged that he held a US green card, allowing him permanent residence there, while he was Chancellor of the Exchequer.

Sunak later said he had given up the card while his wife Akshata Murty, whose billionaire father co-founded the Indian tech giant Infosys, said she would now pay tax in the UK on all her income.

Zahawi, who set up the polling firm YouGov, said neither he nor his family benefit from an offshore trust.

“My mother and father live abroad. That’s their business. They don’t live in the United Kingdom,” he said.

The HMRC, SFO and NCA all declined to comment when contacted by AFP about the reported investigations, which first appeared in the Independent newspaper. – AFP, July 12, 2022