• Rishi Sunak was asked about the tax affairs of former chancellor Nadhim Zahawi.
• Mr Zahawi is facing questions over whether he tried to avoid paying tax.
• By using an offshore company to hold shares in YouGov.

In response to questions about the tax affairs of the previous chancellor Nadhim Zahawi, Rishi Sunak came under fire.

According to reports, Mr. Zahawi resolved a tax dispute by paying Revenue and Customs more than £1 million.

He has so far refrained from commenting on the veracity of the story in The Sun.

Mr Sunak said the minister, who is now Conservative Party chairman, had “already addressed this matter in full”, in response to a Labor MP’s question.

Mr. Zahawi is facing questions from opposition parties about whether he tried to avoid paying tax by using an offshore company to hold shares in YouGov, the polling company he co-founded.

A spokesman for Mr. Zahawi has said his taxes are “properly declared” and that he “has never had to instruct any lawyers to deal with HMRC on his behalf”.

“He is proud to have built a British business that has become successful around the world,” the spokesman added.

At PMQs, Labor MP Alex Sobel said Mr. Zahawi was “forced to pay millions to HMRC to settle a tax dispute”.

He asked Mr. Sunak if he was “aware of an investigation when he appointed him to his cabinet and as chairman of the Conservative Party”.

He added: “Will the prime minister demand accountability from his cabinet members about their tax affairs?”

The prime minister said Mr Zahawi “has already addressed this matter in full and there’s nothing more that I can add”.

Mr. Sunak’s official spokeswoman said Mr. Zahawi “has spoken and been transparent with HMRC”.

On whether Mr. Sunak believes the matter is now closed, she said: “I don’t know whether the prime minister has reviewed it in full, but I do know that he takes Nadhim Zahawi at his word.”

She claimed the prime minister had complete faith in Mr. Zahawi and that when asked if Mr. Sunak was convinced he knew what he needed to know, the answer was “absolutely.”

Robert Jenrick, a minister for the Home Office, stated that it was a “private problem” for Mr. Zahawi and that the “essential factor” was that his tax affairs were now current.

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