Well then let’s look at the questions that HMRC will be asking shall we?
1. Why did Zahawi initially give a provably false explanation for the Balshore shares, that his father provided startup capital.
2. Why did Zahawi subsequently give a second, different, explanation, that his father provided valuable advice in exchange for the shares? And why is it so contrary to common-sense, usual practice, and the evidence?
3. If Zahawi’s second explanation is true, why was no VAT paid on the valuable services provided by his father to him?
4. Why did Zahawi deny that he benefited from the trust, when we know that he did?
5. Was this a tax avoidance scheme? If not, what was going on?
6. When a UK person receives a gift from a trust, that is normally taxable. Did Zahawi pay UK tax on the gift from the trust? If not, why not?
7. Zahawi says he took a loan from a Gibraltar company. He should have paid (“withheld”) UK tax on his interest payments. Did he?
8. Why is that same loan not recorded in the Gibraltar company accounts?
9. Zahawi has taken a series of loans from offshore companies. Were these funded from dividends and gains on the Balshore shares? If they were, did Zahawi pay UK tax on this?
For further in depth information look at Tax Policy Associates.
If Zahawi has nothing to hide, I suggest he makes his tax affairs as transparent as possible to show that he indeed is paying all tax due in the U.K.