Labor leader Annelise Dodds has written to her Conservative colleague to demand assurances that all Tory leadership candidates will reveal whether they have ever had foreigner status or used arrangements such as offshore holdings or stakes in shell companies.
Following Saturday’s revelations about Chancellor Nadhim Zahawi, the letter also requested information on whether any of Boris Johnson’s potential successors had been investigated for their financial affairs or had officials raised concerns about them.
The fact that Sajid Javid and Rishi’s wife Sunak are already known to have used non-resident status for UK tax purposes could be “just the tip of the iceberg”, Dodds said.
The letter was sent to Andrew Stephenson, the MP appointed to replace Oliver Dowden as co-leader of the Conservative Party, after it emerged that integrity and ethics officers had spotted a “flag” by HM Revenue and Customs (HMRC) about Zahawi before his promotion from Education Secretary to the Chancellor.
Zahawi, who has a personal fortune of more than £100m, has faced calls to explain the financial arrangements of his family trust, an offshore firm, Balshore Investments in Gibraltar.
A source close to Zahawi said he “does not have and has never had an interest in Balshore Investments and is not a beneficiary”.
In the letter to Stevenson, Dodds said all Tory leadership candidates must say whether they or immediate relatives have benefited from non-domicile tax status for overseas income and whether they support a Labor plan to scrap the option.
The letter also asks whether they or their families own offshore shares, even through a shell company; whether they have funds in domestic shell companies or blind trusts; for details of any investigations into their affairs by HMRC, the National Crime Agency or the Serious Fraud Office; and whether Whitehall officials ever raised concerns about their affairs.
Dodds wrote, “Workers and businesses in our country pay their taxes and do the right thing.
“It will further damage public confidence in government if another Conservative prime minister comes into No 10 under the impression that the rules that apply to everyone else don’t apply to them.”
In April, it emerged that Akshata Murthy, the wife of Sunak, who resigned as chancellor last week, had claimed non-domestic status, allowing her to save millions of pounds in tax on dividends collected from a stake in the technology company Infosys, founded by her father her
It was then revealed that Sunak had held a US green card, which gave him “US permanent resident” status for tax purposes, for 19 months while he was chancellor and for six years as an MP.
Javid said at the time that he had non-domestic status for six years while he was a banker and held wealth in an offshore trust until he became a minister in 2012.
Former foreign secretary Jeremy Hunt said on Sunday he had never used his foreigner status and would release his tax details if necessary. Javid also said he would.
Mr Hunt said on the BBC’s Sunday Morning programme: “I’m very happy if I go on to the last two to publish my tax affairs if that’s what the other candidates are doing. But I will not speak for other candidates. I wouldn’t have a problem doing it myself.
When the Cabinet was asked about the “flag” raised over Zahawi, a spokesman said: “According to the ministerial code, ministers must ensure that no conflict arises or is reasonably perceived to arise between their ministerial position and their personal interests, financial or others.
“The chancellor followed the process set out in the ministerial code and complied with these requirements to the satisfaction of the previous independent advisers.”
A spokesman for Zahawi said: “All of Mr Zahawi’s financial interests have been correctly and transparently declared.”
A source close to Zahawi said he and his wife never claimed foreigner status.
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