Zahawi defence struck down by local LibDem MP

Misleading language used by Nadhim Zahawi has been struck down thanks to careful questioning from local LibDem MP Sarah Olney.

The representative for Richmond Park used her position on the Public Accounts Committee to ask searching questions of the top civil servant in charge of tax, Jim Harra. In particular, she asked him what was meant by the term "carelessness" when it came to taxes and particularly penalties when it comes to not paying tax.

"Carelessness is a concept in tax law," Harra responded, before noting that "there are no penalties for innocent errors in your tax returns."

Trust fund baby

The now-fired Conservative Party chair Zahawi had argued that his failure to pay tax on millions of pounds was a result of "carelessness" rather than wrongdoing.

It was an explanation that led some to argue that the fine he had received from HMRC for putting millions of pounds of shares offshore in Gilbraltar in a trust under his parents' name was a mistake instead of an active attempt by Zahawi to avoid paying tax. The fine is thought to have been between £3.7mn and £5mn.

Olney's questioning helped clarify the reality of the situation, and ultimately led to Zahawi being fired for trying to avoid paying his fair share of tax at a time when he was the government minister in charge of taxation. It is this kind of questioning that helps keep alive accountability and scrutiny of senior government officials. 

You can see the full exchange here.

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Story updated to include Zahawi's firing.