Nadhim Zahawi: Rishi Sunak orders investigation into Tory party chairman amid calls to sack him over tax row

Published

1 year ago

January 23, 2023

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Rishi Sunak has ordered an investigation into Nadhim Zahawi as he resisted calls to sack the Tory party chairman over his tax dispute.

The prime minister asked new ethics adviser Sir Laurie Magnus on Monday to assess whether the cabinet minister breached the ministerial code with the HMRC settlement he made while he was chancellor.

Mr Sunak said he was launching an investigation because “clearly in this case there are questions that need answering”.

But Labour leader Sir Keir Starmer said: “He promised us, his first words, integrity and accountability.

“Well, if those words mean anything, the prime minister should sack him and sack him today and show some leadership.”

Politics live: Zahawi told to quit – amid ‘clear evidence’ TV interview defence was ‘not true’

Scotland’s first minister, Nicola Sturgeon, has also said Mr Zahawi’s position is “untenable”.

Earlier, a source close to the embattled Tory MP said he is “absolutely not going to resign” in the face of growing pressure over his settlement, estimated to be around £5m.

The government’s paymaster general, Jeremy Quin, told the Commons on Monday the process for the management of conflicts of interest, or potential conflicts is “clear and robust” as he admitted the PM has the ultimate say on appointments.

But he added: “It is a responsibility of all ministers to ensure that no conflict arises or could be reasonably perceived to arise between their role and their interests, financial or otherwise.”

The tax expert who investigated Mr Zahawi has joined calls for him to go, telling Sky News there is “clear evidence” he has not been truthful about his affairs.

Dan Neidle, the Founder of Tax Policy Associates and a Labour member, pointed to comments made by Mr Zahawi to Kay Burley last summer, while the then-chancellor was running to be leader of his party.

Mr Zahawi said he was “clearly being smeared” over questions about his affairs – and that he did not “benefit” from an “offshore trust”.

Speaking to Kay Burley on Monday, Mr Neidle said that a filing disclosure from YouGov – the polling company Mr Zahawi co-founded – showed he “received £99,000 from Balshore Investments”, a company based in Gibraltar.

Mr Neidle said: “That’s not my supposition or a guess – it’s absolute fact.

“And yet he denied that to you.”

Mr Neidle said there could be “an innocent explanation” for Mr Zahawi’s tax error, which the Tory MP called “careless not deliberate”.

But he added: “I lack the imagination to see it and if there isn’t one, I think he should resign.”

What we still don’t know about Zahawi’s tax dispute

Questions about Mr Zahawi’s tax affairs have continued, even after he released a statement to “address some of the confusion about my finances”.

On Saturday he admitted he paid what HMRC said “was due” after it “disagreed about the exact allocation” of shares in YouGov.

But he did not disclose the size of the settlement – reported to be an estimated £4.8m including a 30% penalty – or whether he paid a fine.

Sky News understands he did pay a fine, and Mr Neidle said the use of the word “careless” confirms this.

He said “careless means something specific” in tax terms – “that you didn’t behave in a reasonable way”.

“A reasonable way is you instruct decent tax advisers. You tell them the truth, you follow their advice, you check your final tax returns as best you can.”

It is also not clear how much money Mr Zahawi made before settling the dispute.

Mr Neidle said: “I think he would have received about £27m and not paid tax on it until eventually he was forced to because it was being reported. He didn’t admit it, denied it, threatened to sue people and went to HMRC to quietly settle it.”

Mr Zahawi did not answer questions from reporters as he headed into the Conservative Party headquarters in Westminster earlier on Monday.

World

Oleksandr Usyk defeats Tyson Fury to become heavyweight champion of the world

Published

37 mins ago

May 19, 2024

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Oleksandr Usyk defeats Tyson Fury to become heavyweight champion of the world

Oleksandr Usyk has become the undisputed heavyweight champion of the world after defeating British boxing star Tyson Fury.

The Ukrainian won on a split decision following the match in Riyadh, Saudi Arabia.

Usyk had 115-112 and 114-113 on two cards, while Fury took the other 114-113.

Follow the match as it happened

Fury disputed his loss after the match, saying: “I believe I won that fight. I think he won a few rounds but I won the majority of them.

“His country is at war, so people are siding with the country at war. Make no mistake, I won that fight in my opinion.

In response Usyk said he was “ready for rematch,” but later added: “I don’t think about rematch now, I want to rest.”

Fury came under early pressure, with Usyk taking the centre of the ring with an aggressive offensive from the start.

At one point Fury was pushed against the ropes and started laughing as Usyk applied pressure.

The “Gypsy King” looked relaxed as he moved around the ring in the early rounds and picked his shots.

But after Usyk landed a right hook in the ninth round it looked as if Fury was in serious trouble.

The Ukrainian followed up by unloading freely but somehow the bookmakers’ favourite stayed on his feet and was given a standing 10-second count saved by the bell.

It left Fury struggling through the final three rounds as Usyk chased him around the ring.

The 37-year-old Ukrainian became the first boxer to hold all four major heavyweight belts at the same time and the first undisputed champion in 24 years.

He’s the best fighter of a generation, there’s nothing left

Jacquie Beltrao

Sports presenter

There’s something very special about Oleksandr Usyk and it’s something all brilliant sports people have: the ability to find that extra bit of grit, to dig a bit deeper, when the battle is slipping away.

It’s exactly the character he showed, coming back at Fury in the 7th and 8th rounds, with some impressive shots, to take the sting out of any Fury resurgence and to swing momentum back his way. And enabling him to go for the kill in that brilliant 9th round. Fury looked stung, he looked confused and he was lucky the referee didn’t stop the fight there and then.

It was amazing that Fury made it to the end. That took courage. But it’s hard to see how he’s going to recover from this. It’s going to hurt. He says he wants to invoke the rematch clause and go again, but will he really want to?

Will Usyk want to? He’s the best fighter of a generation, there’s nothing left to prove. No fighter has ever won the undisputed cruiserweight championship of the world and followed that with the undisputed heavyweight crown. He can take four belts back to Kyiv safe in the knowledge that it’s unlikely anyone will be able to match that achievement anytime soon.

Last night, Fury weighed in at 262lbs (18st 10lbs) – nearly three stone heavier than Usyk, who clocked in at a career heaviest of 223lbs (15st 13lbs).

Fury refused to look at his opponent during a news conference on Thursday, but did not back down at the weigh-in last night, where the pair almost came to blows before being separated by their entourages.

Usyk arrived into the ring first, dressed as a Cossack warrior.

Fury entered to songs by Barry White and Bonnie Tyler, with the “Gypsy King” spending several minutes dancing on stage before the song changed to Holding Out For A Hero.

Anthony Joshua watched from the ringside, knowing he could meet the winner early next year.

World

Fury v Usyk: The fight of the century – as it happened

Published

37 mins ago

May 19, 2024

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World

Benny Gantz: Israeli war cabinet member threatens to resign if Benjamin Netanyahu doesn’t adopt new plan for Gaza

Published

37 mins ago

May 19, 2024

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Benny Gantz: Israeli war cabinet member threatens to resign if Benjamin Netanyahu doesn't adopt new plan for Gaza

A member of Israel’s three-man war cabinet has threatened to resign from the government if it does not adopt a new plan for the war in Gaza.

The move by Benny Gantz escalates a divide within Israel’s leadership more than seven months into the war.

Israel is yet to accomplish its stated goals of dismantling Hamas and returning scores of hostages abducted during the attack on 7 October.

Mr Gantz, a long-time political rival of Prime Minister Benjamin Netanyahu, has now set out a six-point plan that includes the return of hostages, ending Hamas’ rule, demilitarising Gaza and establishing an international administration of civilian affairs.

Mr Gantz’s plan also supports efforts to normalise relations with Saudi Arabia.

He said if it is not adopted by 8 June he will quit the government.

His departure would leave Mr Netanyahu even more beholden to far-right allies who have taken a hard line on negotiations over a ceasefire and the release of hostages, and who believe Israel should occupy Gaza and rebuild Jewish settlements there.

“If you choose the path of fanatics and lead the entire nation to the abyss – we will be forced to quit the government,” Mr Gantz has said.

The centrist politician joined Mr Netanyahu’s coalition and the war cabinet in the early days of the conflict.

Mr Gantz’s six-point plan comes days after Israeli defence minister Yoav Gallant, the third member of the war cabinet, openly said he has repeatedly pleaded with the other two members to decide on a post-war vision for Gaza.

Mr Gallant said this should involve the creation of a new Palestinian civilian leadership.

It comes as Mr Netanyahu is under growing pressure on multiple fronts.

Hardliners in his government want the military offensive on Gaza’s southernmost city of Rafah to press ahead with the goal of crushing Hamas.

However, Israel’s most important ally, the US, and others have warned against the offensive on a city where more than half of Gaza’s population of 2.3 million had sheltered.

Hundreds of thousands have now fled Rafah and Israel’s allies have threatened to scale back support over the humanitarian crisis.

US national security adviser Jake Sullivan will be in Saudi Arabia and Israel this weekend to discuss the war and is scheduled on Sunday to meet with Mr Netanyahu, who has declared that Israel would “stand alone” if needed.

Meanwhile, many Israelis are accusing Mr Netanyahu of putting political interests ahead of all else. They also want him to agree a deal to free the hostages and stop the fighting.

There was fresh frustration Friday when the military said its troops in Gaza found the bodies of three hostages killed by Hamas in the 7 October attack.

The discovery of the body of a fourth hostage was announced Saturday.

The latest talks in pursuit of a ceasefire, mediated by Qatar, the United States and Egypt, have brought little progression.

A vision for Gaza beyond the war is also uncertain.

The conflict started after Hamas militants carried out an attack on Israel on 7 October – killing 1,200 people and capturing around 250 hostages.

Israel says around 100 hostages are still captive in Gaza, along with the bodies of around 30 more.

The Israeli offensive has killed more than 35,000 Palestinians in Gaza, according to its Hamas-run health ministry, while hundreds more have been killed in the occupied West Bank.