MP NADHIM Zahawi has reportedly agreed to pay several million pounds in tax following an investigation into his financial affairs.
The Stratford MP and former chancellor is said to have paid the sum – thought to be in the region of £3.7 million – to settle a dispute with HM Revenue and Customs.
It comes after an investigation was launched last July into whether the 55-year-old Conservative Chairman had avoided tax by using an offshore company to hold shares in YouGov – a polling company he co-founded.
At the time, Mr Zahawi, who is reportedly worth more than £100 million, said the allegations of wrong doing were politically motivated “smears”.
The probe allegedly looked into a Gibraltar-based family trust, Balshore Investments, which sold a £20 million stake in YouGov in 2018.
Mr Zahawi previously said he was not a beneficiary of the trust but records show cash he owed to YouGov was partly repaid from Balshore dividends, it is reported.
A spokesperson for Mr Zahawi said at the time the investigation was launched: “As he has previously stated, Mr Zahawi’s taxes are properly declared and paid in the UK. He is proud to have built a British business that has been successful around the world.”
Mr Zahawi, who ran for the Tory leadership last year, promised to publish his tax returns if he became party leader and prime minister.
He was knocked out of the race after only receiving 25 votes in his bid to replace Boris Johnson.
Labour Chair Anneliese Dodds said there were “serious questions to answer” for both Mr Zahawi and Prime Minister RIshi Sunak.
She continued: “If true, this is another mail in the coffin of the honesty, integrity and accountability promised by Rishi Sunak.
“People are sick and tired of the constant sleaze and scandal surrounding this government.”
HMRC has declined to comment on the alleged investigation as the authority does not go into the details of individual taxpayers.