We desperately need a general election.
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U.K. Politics: Boris Johnson referred to police (AGAIN) over potential Covid rule breaches
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I don't think we can blame Sunak. Private planes don't have as many rules and regulations as regular cars do, right?
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I literally cannot keep up with all the sleaze!
Former Chancellor - and current Chairman of the Conservative Party - is facing calls to resign. In a nutshell, he sold the company he founded (YouGov) many years ago and allegedly moved the money into a different country for tax purposes (an offshore account), thus avoiding a massive Capital Gains Tax charge (confirmed to be over £3m). He was found out for this last year - though this hasn't really come to light until now, due to his aggressive solicitors threatening people who vowed to break the story. Anyway, the most recent part of the row is over whether he was or wasn't issued a penalty by HMRC (it's rumoured he was, of 30%, taking his total bill to a rumoured £4.8m). If he was indeed issued a penalty, it would mean HMRC viewed his decisions as tax avoidance - and not simply a careless error as he protests. There's also the issue that he allegedly agreed a tax settlement with HMRC when he was the Chancellor, a total conflict of interest if true.
Nadhim Zahawi: Tax error was careless and not deliberate
Tory Party Chairman Nadhim Zahawi says an error in his tax affairs was accepted by HMRC as having been "careless and not deliberate".
In a statement, he said he wanted to address "confusion about my finances" after claims he tried to avoid tax and had to pay it back.
Prime Minister Rishi Sunak is satisfied with Mr Zahawi's account, the BBC has been told.
Labour said there was a whole list of questions that still needed answering.
The party has called on Mr Zahawi to publish all correspondence with HMRC "so we can get the full picture".
According to the Guardian, Mr Zahawi had to pay back tax he owed with a 30% penalty and the total amounts to £4.8m.
The BBC has been unable to verify that figure, but when the paper asked about the penalty, Mr Zahawi's spokesperson did not deny one had been paid.
Mr Zahawi's statement does not make clear whether he paid a penalty or not as part of his settlement, nor does it say how much he paid to HMRC.
He said when he was being appointed chancellor, questions were being raised about his tax affairs and he discussed it with the Cabinet Office at the time.
The exact timing of when the matter was settled with HMRC remains unclear.
In the statement issued on Saturday afternoon, Mr Zahawi said: "As a senior politician I know that scrutiny and propriety are important parts of public life. Twenty-two years ago I co-founded a company called YouGov. I'm incredibly proud of what we achieved. It is an amazing business that has employed thousands of people and provides a world-beating service.
"When we set it up, I didn't have the money or the expertise to go it alone. So I asked my father to help. In the process, he took founder shares in the business in exchange for some capital and his invaluable guidance.
"Twenty one years later, when I was being appointed chancellor of the exchequer, questions were being raised about my tax affairs. I discussed this with the Cabinet Office at the time.
"Following discussions with HMRC, they agreed that my father was entitled to founder shares in YouGov, though they disagreed about the exact allocation. They concluded that this was a 'careless and not deliberate' error.
"So that I could focus on my life as a public servant, I chose to settle the matter and pay what they said was due, which was the right thing to do."
The questions facing Mr Zahawi include whether he tried to avoid paying tax by using an offshore company called Balshore Investments to hold shares in YouGov, the polling company he co-founded in 2000 - something he has always denied.
Balshore Investments is registered offshore in Gibraltar.
According to HMRC, tax avoidance involves bending the rules of the tax system to try to gain a tax advantage that Parliament never intended. It is legal and includes things that some people would consider to be normal tax planning. Tax avoidance is different from tax evasion, which is illegal.
Penalties can be applied by HMRC if tax is not paid in the correct amount at the right time.
In his statement, Mr Zahawi continues: "Additionally, HMRC agreed with my accountants that I have never set up an offshore structure, including Balshore Investments, and that I am not the beneficiary of Balshore Investments.
"This matter was resolved prior to my appointments as chancellor of the duchy of Lancaster and subsequently chairman of the party I love so much. When I was appointed by the prime minister, all my tax affairs were up to date."
https://www.bbc.co.uk/news/uk-politics-64360260
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Also hitching a ride on the sleaze train this weekend is former PM (and still Member of Parliament) Boris Johnson…
Probe urged over claims BBC chair helped Johnson secure loan
Labour is calling for a parliamentary investigation into claims the chairman of the BBC helped Boris Johnson secure a loan - weeks before the then-prime minister recommended him for the role.
The Sunday Times says Richard Sharp was involved in arranging a guarantor on a loan of up to £800,000 for Mr Johnson.
Mr Sharp said he had "simply connected" people and there was no conflict of interest.
Mr Johnson's spokesman said he did not receive financial advice from Mr Sharp.
He also dismissed Labour's suggestion Mr Johnson could have breached the code of conduct for MPs "through failing to appropriately declare the arrangement" on his Parliamentary register of interests.
Labour's chairwoman Anneliese Dodds has written to the Parliamentary Commissioner for Standards, Daniel Greenberg, asking for "an urgent investigation into the facts of this case".
Mr Johnson was reported to be in financial difficulty in late 2020.
The Sunday Times says multimillionaire Canadian businessman Sam Blyth raised with Mr Sharp the idea of acting as Mr Johnson's guarantor for a loan. It is not clear where the loan money came from.
Mr Sharp - a Conservative Party donor who at the time, was applying to be the chairman of the BBC - contacted Simon Case, the then-cabinet secretary and head of the civil service.
According to the paper, Mr Sharp, Mr Blyth and Mr Johnson had dinner together at Chequers before the loan was finalised, although they deny the PM's finances were discussed then.
Former Goldman Sachs banker Mr Sharp was announced as the government's choice for the new BBC chairman in January 2021. The role is recommended by the culture secretary and the prime minister.
The BBC chairman heads the board that sets the corporation's strategic direction and upholds its independence.
The Sunday Times says candidates for such publicly-appointed roles are required to declare any conflicts of interest.
In a statement, Mr Sharp said: "There is not a conflict when I simply connected, at his request, Mr Blyth with the cabinet secretary and had no further involvement whatsoever."
https://www.bbc.co.uk/news/uk-politics-64362640
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There seems to be a flurry of stories recently that everybody is banging the drum about online but there is no coverage in the mainstream media. Carol Vorderman’s tweets seem to be the best source of info right now!
The BBC herald themselves as impartial but seemingly pick and choose what they report on…
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Originally posted by Wayne View PostAlso hitching a ride on the sleaze train this weekend is former PM (and still Member of Parliament) Boris Johnson…
I’m starting to become quite suspicious over these things - it’s fascinating that this story hasn’t leaked before. The BBC doesn’t have coverage of the Zahawi tax scandal anywhere on its homepage or in its top 10 stories…it’s almost like they (Tory party) don’t want you to talk about it and so they feed you a seemingly bigger story. Even though this story is just a distraction (albeit a sleazy one).what's going on?
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It was inevitable with all of the media frenzy but I don't think anyone should be having to pay that much tax in the first place. Having to fork out close to £5M is diabolical and I'd be doing my best to avoid that too in all honesty!
This country really needed to get a grip on tax expenditure decades ago and we wouldn't be in this position.
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Originally posted by ludichris View PostIt was inevitable with all of the media frenzy but I don't think anyone should be having to pay that much tax in the first place. Having to fork out close to £5M is diabolical and I'd be doing my best to avoid that too in all honesty!
This country really needed to get a grip on tax expenditure decades ago and we wouldn't be in this position.
Are you saying that someone who earns £25-£30m from a company sale shouldn't pay £3.7m in tax?
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↵As a reminder, we’ve had the following ministerial code issues or breaches in the last 6-9 months:- After a premiership fraught with issues and code breaches, former Prime Minister Boris Johnson was forced to resign.
- After concealing £27m in an off-shore account and avoiding paying £3.7m in tax, former Conservative Party Chairman Nadhim Zahawai is sacked.
- After telling a civil servant to "slit your throat" whilst Defence Secretary some years ago, Gavin Williamson is forced to resign as Minister of State without Portfolio in Sunak's government.
- After an inquiry found that she bullied a civil servant, former Home Secretary Priti Patel continued in role without care.
- After leaking official documents, Home Secretary Suella Braverman resigned, but was brought back very quickly under a Sunak government.
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