A Sequel to Richi Sunak Acting Dictatorially — Part One
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Richi Sunak’s re-shuffle of his cabinet on 7th February was the direct result of Nadhim Zahawi being less than transparent over his tax affairs. Zahawi was fined for tax avoidance by the UK’s tax authorities, HMRC.
During the last few Questions to the Prime Minister, Sir Kier Starmer asked Sunak when he first knew about Zahawi’s tax avoidance and why he didn’t sack him sooner. He received no answers. The media knew, The voting public knew. But, apparently, the Prime Minister did not. Did senior civil servants warn him that Zahawi was breaking the ministerial code? There has been no response from Downing Street on that, but it is assumed Sunak was told but choose to ignore the warnings.
Rather than dismiss him from his position of Conservative Party chairman and Minister Without Portfolio, Sunak appointed Sir Laurie Magnus as an independent investigator. On reading Magnus’ report, the Prime Minister eventually dismissed him from all government positions on Sunday 29th January. The timing is significant. He did not want to give Starmer an opportunity to question him in the House of Commons before the next PMQ’s on Wednesday 8th February.
It is usual to invite a minister who is being dismissed to resign voluntarily. This face-saving approach was not given to Nadhim Zahawi, who has publicly commented on his harsh treatment.
He still remains a back bench Tory M.P. and promised loyalty to Sunak, but he remains very bitter at Zahawi was being disingenuous by claiming he was Zahawi Zahawi claims that he was unaware that he was being investigated by His Majesty’s Revenue and Customs, HMRC. As a former shrewd businessman who founded You Gov and became a billionaire, that does not ring true. And as Chancellor of the Exchequer, and effectively responsible for His Majesty’s Revenue and Customs, it is inconceivable that he thought he was not being investigated.
Members of the Commons Select Committee had a difficult time understanding how Nadhim Zahawi could be “innocent” of a tax offence yet still escape a penalty. Although neither they nor Harra were allowed to discuss Zahawi’s affairs by name, Harra explained that HMRC were sympathetic to “careless and not deliberate errors”. Talking generally in respect of all taxpayers, he went on to say “there are no penalties for innocent errors in your tax affairs”.
The committee could not get Harra to agree that a taxpayer, given a significant penalty by the taxman as in Zahawi’s case, could be declared “innocent”. Harra is too much an establishment figure.
This is the formal and brusque letter that Sunak wrote to Nadhim Zahawi.
Dear Nadhim,
When I became Prime Minister last year, I pledged that the Government I lead would have integrity, professionalism and accountability at every level.
That is why, following new information which came to light in recent days regarding your personal financial arrangements and declarations, I asked Sir Laurie Magnus, the Independent Adviser on Ministers’ Interests, to fully investigate this matter.
You agreed and undertook to cooperate fully with the inquiry.
Following the completion of the Independent Adviser’s investigation — the findings of which he has shared with us both — it is clear that there has been a serious breach of the Ministerial Code.
As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government.
As you leave, you should be extremely proud of your wide-ranging achievements in government over the last five years.
In particular, your successful oversight of the COVID-19 vaccine procurement and deployment programme which ensured the United Kingdom was at the forefront of the global response to the coronavirus pandemic.
Your role was critical to ensuring our country came through this crisis and saved many lives.
And as the Conservative Party Chairman, you have undertaken significant restructuring to Conservative Campaign Headquarters and readied us for important work in the coming months.
It is also with pride that I, and previous Prime Ministers, have been able to draw upon the services of a Kurdish-born Iraqi refugee at the highest levels of the U.K. Government.
That is something which people up and down this country have rightly valued.
I know I will be able to count on your support from the backbenches as you continue to passionately and determinedly serve your constituents of Stratford-on-Avon and represent the many issues and campaigns you are dedicated to.
Thank you for your service to this and previous governments.
Yours sincerely,
Rishi Sunak
Although Richi Sunak was born in England and is a British citizen, he held an American Green Card while in government office and had Non-Dom status. He has since given up his Non-Dom status and Green Card.
His father, Yashir, was a doctor in general practice with several surgeries. His mother Usha owned a chain of pharmacies. It is certainly true that, through the family’s good fortune, Sunak was given opportunities which are not open — then and now — to most ordinary people. And he appoints many wealthy people to Cabinet with similar backgrounds.
His wife, Akshata, had Non-Dom status for 15 years, claiming she was domiciled in India. That is not illegal. Non-Doms pay the UK treasury £30,000 per year which then allows them to pay no tax on income earned abroad where taxes are lower. Akshata’s principal dividend income come from the tech giant, Infosys, which her father, Narayana Murthy, founded and owns. It was £7 million in 2022. This saved her around £2.1 million. In late 2022, she withdrew her Non-Dom status. Her father is the 6th wealthiest man in India.
HMRC approve Non-Dom status on a case by case basis and depending who you are. The questions they usually ask are:
Where do you intend to be buried or cremated? Is your background British? Is your lifestyle more of your native country than of Britain? Where do you own property?
According to the Sunday Times Rich List, Sunak and his wife are listed as having wealth of £750 million in the UK alone. Akshata with £450m and Richi with £300m.
