Nadhim Zahawi 'transparent' over tax affairs - Raab

Image source, Reuters

Nadhim Zahawi has been "transparent" about his tax affairs, the deputy prime minister says, after reports the Tory Party chairman paid a penalty to HMRC.

Mr Zahawi is under pressure over claims he tried to avoid tax and has now had to pay it back as part of a multi-million pound settlement.

Dominic Raab told the BBC "all the tax owed has been paid" and it was for Mr Zahawi to answer any further questions.

But Labour's Angela Rayner said the former chancellor should be sacked.

The BBC has approached Mr Zahawi for comment on the allegations.

According to the Guardian, Mr Zahawi has 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 Guardian asked repeatedly about the penalty, Mr Zahawi's spokesperson did not deny one had been paid.

When pressed on the total amount, which was thought to include the alleged penalty, the spokesperson said: "Nadhim Zahawi does not recognise this amount… as he has previously stated, his taxes are properly declared and paid in the UK."

Penalties can be applied if tax is not paid in the correct amount at the right time.