HMRC’s chief executive, Jim Harra, said his department did not penalise taxpayers who were deemed to have taken “reasonable care”.
“But if your error was as a result of carelessness, then legislation says that a penalty could apply in those circumstances.”
The testimony adds to pressure on the former chancellor to explain what led to him receiving an HMRC penalty before his appointment as the Tory party chair on 25 October 2022. Zahawi is understood to have paid an estimated total of £5m, which included interest, about £3.7m in tax owed and a penalty of 30%, according to Guardian sources.
Zahawi said last week that the error was “careless and not deliberate”, but has not provided further details.
Read more at The Guardian