Rishi Sunak was not talking about the tax affairs of Nadhim Zahawi when he said this month that he believes “transparency is really important for the healthy functioning of democracy” – but the words nevertheless ring true.
Mr Zahawi is right to have said there is “confusion” surrounding his finances. The Independent has been seeking answers since last July, when we revealed that the current Conservative Party chair was subject to an investigation by HMRC linked to the sale of shares in polling company YouGov. The questions we asked at the time were met with threats of legal action from Mr Zahawi, although his statement this weekend about his tax affairs was altogether different in its wording.
Addressing reports of an estimated £5m tax settlement – said to include a “million-pound” fine – Mr Zahawi said that HMRC had concluded that he had made a “careless and not deliberate” error, and that the dispute had been settled before he was appointed chancellor of the Duchy of Lancaster and subsequently chair of the Conservative Party.
