U.K. Prime Minister Fires Top Official Over Tax Probe

The investigation by the U.K. tax authorities first came to light around the time when Mr. Zahawi was briefly made chancellor of the exchequer, or Treasury chief, by then-Prime Minister

Boris Johnson

last July. At the time Mr. Zahawi described reports that he was being investigated as a smear and initially didn’t disclose the probe in his declaration of interests. 

Two months later, Mr. Zahawi was required to make an additional tax payment and pay a penalty, according to the ethics adviser’s report. Mr. Zahawi had previously described his tax errors as “careless and not deliberate.” In a statement Sunday he didn’t address the tax issue nor contest the findings of the ethics adviser’s report. Officials estimate Mr. Zahawi had to pay a total of 5 million pounds, equivalent to about $6.2 million, to cover the extra tax and the fine.  

“It is clear that there has been a serious breach of the Ministerial Code. As a result, I have informed you of my decision to remove you from your position,” Mr. Sunak wrote to Mr. Zahawi on Sunday. 

The dismissal of the senior cabinet minister comes as the prime minister works to rebuild the Conservative Party’s damaged brand, which has left his party languishing in the polls. 

Since arriving in Downing Street in October, Mr. Sunak has looked to portray himself as a sober politician focused on solving the problems that plague Britain, notably reducing double-digit inflation, dealing with illegal migration and fixing a creaking healthcare system.