New questions are being raised by Tory chair over claims that he was penalized in a seven-figure settlement

Nadeem Al Zhawi, Conservative Party chairman faces new questions about his tax affairs after he was accused of paying a penalty as part of a multimillion pound settlement with HMRC.

The former chancellor is currently attending Rishi Sunak’s government. He was reported to have paid a seven figure sum to end the dispute.

Now, The Guardian reports that he has paid a 30% fine, taking the total estimated amount to more than £4.8m.

Mr. Zahawi and his team as well as the Conservative Party were contacted regarding the latest allegation. They did not respond to the report.

Labor Party demanded an investigation into Mr Al Zahawi’s situation and Deputy Leader Angela Rayner urged the Human Resources Management Committee (HRMC) to answer the “serious question that has been raised about a possible conflict of interest”.

Tax barrister Dan Needle exposed the minister’s tax affairs and estimated that he owed £3.7m.

Interest may be payable in addition to the 30% of the fine reported by The Guardian, which would put the potential total in excess of £4.8m.

“Don’t pay 30% penalty if you have a good tax situation,” said Mr. Neidle of Tax Policy Associates.

He said, “You do the best you can.” However, he added, “If you are negligent and you don’t pay the tax due, you are negligent.”

The lawyer said that the possibility of Mr Al Zahawi paying an imposed fine was “almost certain” after Sunday’s Sun reporting that he had paid a seven-figure sum to HMRC.

When asked about the reported punishment, Mr Needell replied: “It probably signifies that he didn’t admit any willful behavior. It might also signify that he has admitted negligence.”

According to the government’s website, a fine of between zero and 30 percent is due for a lack of reasonable care. Willful foul can result in a fine of between 20 and 70%.

According to the Conservative MP, the offshore company in Gibraltar was used by him to hold shares in YouGov, a polling company he cofounded. This allegedly helped him avoid taxes

According to the 2009 Annual YouGov Report, more than 10% of shares were held by Balshore Investments Ltd., a Gibraltar-registered company.

The report described the company in the following way: “The family trust of Nazem al-Zahawi,” which was then the executive director at the polling company.

Ms Rayner said: “If HMRC imposes a 30% penalty in this case, the British people deserve to know why, yet the Tory chairman is deafeningly silent.

“It is quite clear that it is in the public interest to see if the man who, until recently, was in charge of the UK tax system accepted a mistake or suffered a penalty to settle his tax bill.

“Rishi Shahi should explain what he knows, and why Nadim Zahawi was appointed to his cabinet.”

A spokesperson for Mr Al Zahawi has previously said that his taxes were “properly declared and paid in the UK” and that the minister “never had to direct any solicitors to deal with HMRC on his behalf”.

Sunak has defended his ally by telling Prime Minister’s Questions that Mr Zahawi “has already dealt with this in its entirety and I have nothing to add”.

According to the Prime Minister’s press secretary, Mr Zahawi spoke and was transparent with HMRC.

She was asked if Mr. Sinak thinks that the matter is closed. She replied, “I don’t know whether the Prime Minister has reviewed the entire document in its entirety, but he is taking Nadim El-Zahawi at the word of his mouth.”