UK leader fires party chairman over tax bill allegations

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UK leader fires party chairman over tax bill allegations
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British Prime Minister Rishi Sunak has fired the chairman of the governing Conservative Party for a “serious breach” of ethics rules in failing to come clean about a tax dispute.

The prime minister acted after a standards probe found Zahawi had breached the ministerial code of conduct. It said he had failed to disclose details of his dispute with tax authorities and the fact that he had paid a penalty.

Sunak has vowed to restore order and integrity to government after three years of turmoil under predecessors Johnson – brought down by ethics scandals – and Liz Truss, who quit within weeks after her policies rocked the U.K. economy. The investigation into Zahawi by HMRC, the U.K’s tax office, centered around the sale of some 27 million pounds in shares in YouGov, an opinion polling firm he co-founded. The probe began in April 2021, but Zahawi did not declare it when he was appointed Chancellor of the Exchequer more than a year later.

The Zahawi episode was a test of the authority of Sunak, who is grappling with a staggering economy and a deeply divided Conservative Party. Standards inquiries are also underway into Johnson — over claims he secured a loan with the help of a Conservative donor who was later appointed chairman of the BBC — and Deputy Prime Minister Dominic Raab, who faces allegations he bullied staff.

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