Mr Zahawi, who was dismissed as Tory Party chairman on Sunday morning, had come under fire after it emerged he settled an estimated £4.8 million bill with HMRC during his time as chancellor last summer.
His tax affairs were the subject of an investigation by Sir Laurie Magnus, the Government’s new ethics adviser, which was ordered by the Prime Minister earlier this week
Sir Laurie concluded Mr Zahawi had “failed” to meet requirements around declaring “any interests which might be thought to give rise to a conflict”.
He added that Mr Zahawi should have “previously declared” the HMRC inquiry into the sale of shares in YouGov, the polling firm he founded.
“The subsequent fact that the investigation concluded with a penalty in relation to the tax affairs of a Minister also requires declaration and discussion. It is a relevant interest which could give rise to a conflict, and particularly so in the case of HM Treasury Ministers and the Chancellor of the Exchequer, who has responsibility for the UK tax system,” Sir Laurie wrote.
“I also conclude that, in the appointments process for the governments formed in September 2022 and October 2022, Mr Zahawi failed to disclose relevant information – in this case the nature of the investigation and its outcome in a penalty – at the time of his appointment, including to Cabinet Office officials who support that process.
