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**Hugh** · 20-01-2023, 19:40

https://www.theguardian.com/uk-news/...worth-millions

Quote:

The Conservative party chair, Nadhim Zahawi, agreed to pay a penalty to HMRC as part of a seven-figure settlement over his tax affairs, the Guardian has been told.

The former chancellor, who still attends the cabinet, has been subject to extensive questions in parliament and the media in recent days after it emerged he agreed to pay millions to HMRC in December after a settlement with the tax agency.

The Guardian has now been told that the former chancellor paid a penalty imposed by HMRC – part of an estimated £5m tax bill.

Penalties are applied if someone does not pay the correct tax at the right time.

Quote:

Experts estimate the tax due was about £3.7m based on the capital gains tax incurred by the sale of multiple tranches of shares in YouGov worth more than £20m, which led to transfers of money to Zahawi.

It is understood HMRC applied a 30% penalty to the £3.7m, bringing the total due to £4.8m. Combined with interest charges that HMRC also applies to taxes owed, this is believed to have taken the final settlement to more than £5m.

Last summer, news reports emerged about Zahawi’s financial affairs, including an HMRC look at his taxes. At the time, Zahawi described such reports as “smears”.

It is understood that after those reports a representative for Zahawi approached HMRC to discuss his tax position.

Michael Gove defended Zahawi on BBC Radio 4 on Thursday, saying: “My firm understanding is HMRC have no quibble with Nadhim. He’s paid everything that he should, and, people paying their taxes, that’s not a story – people not paying their taxes, yeah that is a problem.”

Zaharia literally got fined for not paying his taxes…