nadeem zahavi has acknowledged that it has paid post tax settlement to HM Revenue and customs Disagrees with the allotment of founder shares taken by his father while setting up YouGov.
Troubled Tory party chairman has been under pressure ever since it was revealed he paid HMRC a seven-figure sum, ending a controversy that saw Labor calls for his sacking.
Mr Zahavi insisted that his tax error was “negligent and not intentional” and that the matter had been resolved before he took up his current position.
So that I could focus on my life as a public servant, I decided to settle the matter and do what they said was due, which was the right thing to do
nadeem zahavi
He issued a statement on Saturday to “clear up some confusion about my finances” following reports that he paid a fine as part of a multi-pound tax settlement.
Mr Zahavi was under pressure after it was reported he had paid HMRC a seven-figure sum to settle a dispute Labor had called for him to be sacked.
In the statement he said that when he founded the YouGov polling company in 2000, his father took the founding shares.
He said: “Twenty-one years later, when I was being appointed Chancellor of the Exchequer, questions were being raised about my tax affairs. I discussed it with cabinet Office those days.
“Following discussions with HMRC, they agreed that my father was entitled to founder shares in YouGov, although they disagreed about the exact allocation. They concluded that this was a ‘negligent and not intentional’ error.
“So that I could concentrate on my life as a public servant, I decided to settle the matter and do what he said was due, which was the right thing to do.
Mr Zahavi said the matter had been resolved and “all my tax matters were up to date” when the prime minister Rishi Sunak Appointed him as the party president.
Labor had previously said the Tory chair’s position was “untenable” and sought an explanation after The Guardian reported that Mr Zahavi had paid 30% of the fine, raising the estimated total tax bill to more than £4.8 million.
Shadow Chancellor Rachel Reeves said: “A few months ago … he was Chancellor of the Exchequer and was responsible for Britain’s tax affairs and tax collection, and now we find he is not keen to pay himself.
“So if the prime minister wants to stick to his commitment to integrity, honesty and professionalism, he should do the right thing and sack Nadim Zahawi.”
Labor deputy leader Angela Rayner said: “If he has lied and misled the public and HMRC about his tax affairs, I think his position is untenable.”
Mr Zahavi also denied allegations that he avoided tax by using an offshore company registered in Gibraltar to hold shares in YouGov.
He said: “HMRC agrees with my accountants that I have never set up an offshore structure including Balshore Investments, and I am not a beneficiary of Balshore Investments.”
YouGov’s 2009 annual report showed a holding of over 10% by Gibraltar-registered Balshore Investments.
The report described the company as “the family trust of Nadim Zahavi”, who was at the time an executive director of the polling firm.