The crux lies in the fact that ministers – and therefore certainly the prime minister – must declare all their private interests in the companies of the British political system. And since Sunak is married jointly, he also has to declare his wife’s interests, says De Waard. “And he didn’t do that with childcare company Koru Kids.”
“Since Sunak is married in community of property, he must also declare his wife’s interests”
The salient detail is that precisely that sector of childhood receives 4 billion pounds of subsidy from the British Ministry of Finance. “So it’s extremely sensitive,” says De Waard.
Neglect or deliberate
Ultimately, the key question in this matter is whether this was an intentional or unintentional error. According to De Waard, Sunak claims he slipped accidentally, while at the same time the opposition smells blood and accuses the prime minister of playing his card. “British politicians – and certainly prime ministers – have a subscription to scandal and business,” De Waard continues. “This is another one of those. The opposition calls it deliberate, also because such a huge amount went to it. They will try to make a big deal out of it.’
It is the second financial incident involving the Sunak family, worth more than £750 million due to the personal wealth of Sunak’s wife Akshata Murthy. Last year it emerged that they weren’t paying taxes in the UK, but in India. “Sunak’s wife claims that she is of Indian origin, and therefore she pays taxes there,” says De Waard. “This was not considered credible, but it was within the rules.”
According to De Waard, that scandal was already a stain on Sunak’s reputation, and this second incident only adds fuel to the fire.
Implications
If Sunak is actually found guilty of deceiving local tax authorities, that can have major and minor consequences, according to De Waard. Options range from reprimand to removal from parliament. “And then he can no longer remain prime minister.”