The Conservative party chair, Nadhim Zahawi, agreed to pay a penalty to HMRC as part of a seven-figure settlement over his tax affairs, the Guardian has been told.
The former chancellor, who still attends the cabinet, has been subject to extensive questions in parliament and the media in recent days after it emerged he agreed to pay millions to HMRC in December after a settlement with the tax agency.
The Guardian has now been told that the former chancellor paid a penalty imposed by HMRC – part of an estimated £5m tax bill.
Penalties are applied if someone does not pay the correct tax at the right time.
Asked repeatedly about the penalty, Zahawi’s spokesperson did not deny one had been paid. Nor did they offer any explanation or clarification about the sums involved.
The former chancellor’s tax avoidance scheme, which has left his political career in the balance, was uncovered by an independent tax expert who Zahawi then tried to frustrate through legal means. Here’s how he did it