Is it OK to break the law if you are a Tory?

Whether or not he was a Chancellor , he was a Tory politician and therefore thought the the rules which apply to us normal ordinary folk. never ever applied to him

Germanshepherdsmum

Not if the adviser considered it a perfectly legitimate arrangement, not a novel avoidance scheme. We just don’t know but it’s easy to speculate.

Then his advisor was not worth his salt was he? A good accountant is absolutely on top of the tax avoidance schemes.

HMRC do not approve of tax avoidance schemes, however there is a list of schemes on request from HMRC. If there is any doubt then Zahawi’s advisor would/should have sought advice.

Zahawi was a U.K. chancellor for heavens sake! I do not believe that the advisor was so incompetent. A COP 8 is not undertaken lightly

“Bending the rules of the tax system to gain a tax advantage that Parliament never intended. It often involves contrived, artificial transactions that serve little or no purpose other than to produce this advantage. It involves operating within the letter, but not the spirit, of the law.”

HMRC

Zahawi would recognise this and in normal circumstances, as chancellor, would take extra care that his tax affairs were absolutely above board.

But these are not normal times are they?

Laws that apply to us ordinary folk, clearly do not apply to Tory politicians.

Germanshepherdsmum

It’s entirely possible that he was badly advised and had no intention to evade payment of tax. We don’t know. He’s been in a dispute with HMRC and is settling. I’ve never been a fan of the man and yes he’s filthy rich and a Tory, but I know of no evidence of attempted tax evasion, as opposed to avoidance. We don’t have sufficient evidence and HMRC never comment on individuals unless they are prosecuted.

He did say in answer to a direct question that he didn't benefit in any way from the money in an offshore account. Nevertheless, it would appear that he's now paying tax on this money (CGT?), so why's he doing that, if what he was doing was legal and, moreover, he didn't benefit from it? Something doesn't add up.

Yes he did. Walks like a duck, talks like a duck

He clearly did in an earlier interview with Burley. Clear as a bell. And so much more

here is an interesting link

www.taxpolicy.org.uk/2022/09/21/zahawi_hide/

You obviously have great insight. Lying?

he lied about his dealings with those people- why would he if he had nothing to hide. Why would he suddenly pay 3 million in a hurry. Come on!

You have no proof either way, any more than I do.

Yes, of course, and the other one's got bells on!

Not if the adviser considered it a perfectly legitimate arrangement, not a novel avoidance scheme. We just don’t know but it’s easy to speculate.

Germanshepherdsmum

It’s entirely possible that he was badly advised and had no intention to evade payment of tax. We don’t know. He’s been in a dispute with HMRC and is settling. I’ve never been a fan of the man and yes he’s filthy rich and a Tory, but I know of no evidence of attempted tax evasion, as opposed to avoidance. We don’t have sufficient evidence and HMRC never comment on individuals unless they are prosecuted.

If it was avoidance, the scheme would have been presented to HMRC for approval.

It’s entirely possible that he was badly advised and had no intention to evade payment of tax. We don’t know. He’s been in a dispute with HMRC and is settling. I’ve never been a fan of the man and yes he’s filthy rich and a Tory, but I know of no evidence of attempted tax evasion, as opposed to avoidance. We don’t have sufficient evidence and HMRC never comment on individuals unless they are prosecuted.

Oh dear I’m trying to do two things at once here😡the last bit should read

unpaid tax therefore would NOT have accumulated

This is almost certainly tax evasion.

The fact that the tax has been now paid to HMRC (with penalties do we know?) suggests attempted tax evasion to me.

Those who wish to set up a scheme to avoid tax have to put this scheme into investigation for HMRC’s approval, BEFORE operating the scheme, - tax unpaid tax would have therefore accumulated.

This is almost tax evasion.

GrannyGravy13: Tax avoidance is legal, successive governments of Conservative, Conservative/Lib Dem and Labour have done little to close any of the so called loopholes

Tax evasion is illegal and anyone found guilty of it should be prosecuted according to the laws of the U.K.

Crux to the matter.

There are some shady tax advisers - not people I would want to be professionally (or otherwise) associated with. Any who knowingly assist tax evasion should be prosecuted.

An enabling law company might very well be morally questionable, but no respectable company would knowingly break the law. It's up to governments to change the law. In Zahawi's case, it appears he actually broke the law, which is why he paid £3 million when found out. I have no idea who his tax lawyers were. Maybe he should think about suing them for giving him bad advice.

ronib

Okay I take your point and am left wondering who is more corrupt, the enabling law companies or the end clients?

Tax avoidance is legal, successive governments of Conservative, Conservative/Lib Dem and Labour have done little to close any of the so called loopholes

Tax evasion is illegal and anyone found guilty of it should be prosecuted according to the laws of the U.K.

both!

Okay I take your point and am left wondering who is more corrupt, the enabling law companies or the end clients?

I know that some law firms make mega bucks advising on tax. It's irrelevant to this case.

It doesn't change the facts surrounding the Zahawi case.

Do you honestly think he would have agreed to pay £3 million if he could have found a legal loophole? He lied and tried to shut down his critics - and only paid up because there was no alternative. He was found out.

Growstuff for a sometimes working retired person tax codes are wrongly given and it’s frustrating to have to deal with the mistakes that Inland Revenue makes. This is by no means an excuse for wilful tax evasion by any one person. Again when reforming the nhs and education departments, some thought needs to be given to closing all tax loopholes not just IR35. Some law firms make mega bucks working for clients in this area.

ronib

Am trying to sort out a tax query, shall try to find some quotes but in the meantime Dan Neidle is in the top 5 of legal influencers in Uk. Perhaps you could have a little explore?

Done. So what? It doesn't change anything about Zahawi's case.

Annoyingly I was trying to find the original trail and maybe I shall try later.