HM Revenue and Customs (HMRC) has come under scrutiny for providing misleading information last year after it said that no Government minister was under investigation, as the row over Nadhim Zahawi’s tax affairs continues.
It follows a difficult week for Downing Street as calls continue for the Conservative Party chairman to stand aside while under investigation for settling a multimillion-pound tax dispute while chancellor. Mr Zahawi has authorised HMRC to discuss his settlement – estimated to be worth £4.8 million and include a penalty – with the ethics investigation ordered by Prime Minister Rishi Sunak.
Pressure on ministers grew after HMRC boss Jim Harra told MPs there are “no penalties for innocent errors in your tax affairs”. On Saturday, HMRC admitted that it had made mistakes in the handling of a freedom of information request centred on the tax affairs of ministers.