Rishi Sunak was struggling to salvage his political career last night following new revelations about his family’s financial affairs, including a surprising claim that he broke US immigration rules.
It comes as friends of the chancellor said Mr Sunak considered leaving cabinet last week to protect his family from further scrutiny – and may do so if the pressure continues.
Mr. Sunak’s political opponents called yesterday white house To investigate why the chancellor had a US green card until last October.
Rishi Sunak’s political opponents called yesterday at the White House to investigate why the chancellor had a US green card until last October
The card entitles the holder to US citizenship if they declare their intention to make the US their permanent home and pay taxes there.
Mr. Sunak and his wife Akshata Murthy own a £5 million flat in Santa Monica, California, which they visit regularly.
Last night, the Treasury said that until surrendering the card, Mr. Sunak had filed annual tax returns to the US.
His spokesman said his cabinet salary of £151,000 was being taxed in full in both countries.
However, last night tax experts said more sophisticated off-setting arrangements are likely.
The chancellor has found himself at the center of a major controversy this week over his family’s financial situation
Labor and the Liberal Democrats highlighted rules set by the U.S. Citizenship and Immigration Services, which say that green card holders must be “employed by a foreign government,” “voted in foreign elections” or “with immediate family members residing outside the United States.” Member”. should not be. States’.
It comes after an uproar over Ms Murthy’s ‘non-DOM’ tax status, which enabled her to potentially avoid paying tens of millions of pounds in tax.
On Friday, she announced she would start paying UK taxes because her arrangement was not ‘compatible’ with her husband’s job as chancellor.
After Labor accused Mr Sunak of failing to be transparent about his family’s financial arrangements, raising taxes for millions during a deep cost of living crisis, Boris Johnson admitted he needed Ms Murthy’s Non-DOM status was not reported.
Sunak’s friends say he considered resigning last week over the controversy. But cabinet colleague Jacob Rees-Mogg defended them, saying: ‘British politics will be defeated if this line prevents people of Sage’s ability from engaging in our public life.’
A friend said: ‘He feels very bad for the way Akshata has been affected by her career.
Akshata Murthy, whose father is one of India’s richest men, faced scrutiny after it emerged that she held non-dome status despite living with Rishi Sunak and his children at 11 Downing Street. they have been pictured together last month
In the end he decided to take a U-turn, but it was a close one, and if it continues he can still decide if it is not worth the stress.’
Lib Dems’ foreign affairs spokeswoman Laila Moran has written to US officials asking for an investigation into why Mr Sunak ‘despite holding elected office in the UK and serving as Chancellor of the Exchequer since February 2020’. Held.
She continued: ‘It appears to be in violation of US State Department regulations.’
In another development, the Mail on Sunday may reveal that HMRC has been urged to investigate whether Ms Murthy violated the terms of her non-DOM status by giving her £4.3 million in interest-free loans to her UK company. has been violated. broken.
Experts said personal loans granted to his venture capital firm Catamaran Ventures UK fall into the ‘grey area’ of regulations.
It was claimed that the loan may ‘disrupt’ the remittance basis of his non-dome condition if they are found giving him ‘monetary or non-monetary returns’, such as impact, it was claimed.
Individuals can make tax-free loans to British companies, even if the money comes from earnings overseas, which are not taxed by the UK.
It is an extraordinary web of homes and businesses with Rishi Sunak and his wife Akshata, the heir to a billion dollar fortune.
Accountants said it could be a way for non-Doms to bring money into the UK without paying taxes.
A Treasury spokesman said Mr Sunak announced his green card arrangement in the Cabinet Office in 2018, when he became minister.
He left it in October last year after seeking guidance ahead of his first US trip in a government capacity.
That means it was paying taxes to the US government at the same time it was negotiating with Washington on minimum international tax rates for US-based Internet giants including Google and Facebook.
Mr Sunak is also facing claims that he has been listed as a beneficiary of tax haven trusts in the British Virgin Isles and the Cayman Islands when setting taxes as chancellor in the UK.
A Treasury source said Mr Sunak, his wife and their wealthy family were not aware of any trust being named as beneficiaries.
Ms Murthy declined to answer questions about the loan. His spokesman said he “followed the letter of the law”.
It came after an eviction van was spotted outside the Chancellor’s Downing Street address – as Sunak temporarily relocated to his West London home for family reasons.
Ms. Murthy is the daughter of billionaire NR Narayana Murthy. He is Rishi Sunak, as pictured with his father and mother Sudha Murthy at their wedding ceremony in Bangalore in 2009