Nadhim Zahawi dealt massive blow in tax row after extraordinary intervention by HMRC

The Independent's Morning Headlines email [View online]( January 27, 2023 [Morning Headlines]( 1 / [Nadhim Zahawi dealt massive blow in tax row after extraordinary intervention by HMRC]( [Nadhim Zahawi]( has not made an “innocent error” in his tax affairs, the head of HM Revenue and Customs suggested, raising fresh questions about [the cabinet minister’s £1m fine](. The Tory chair claimed he had “acted properly” with his tax affairs and that officials had judged his error to have been “careless and not deliberate”. But James Harra, [HMRC](’s chief executive, told a cross-party group of MPs on Thursday that [“there are no penalties for innocent errors in your tax affairs”]( – making clear that his organisation did not fine those deemed to have taken “reasonable care”. “If you take reasonable care but nevertheless make a mistake, whilst you will be liable for the tax and for interest … you would not be liable for a penalty,” Mr Harra told the public accounts select committee on Thursday. “But if your error was as a result of carelessness then legislation says a penalty can apply in those circumstances,” he added, stressing that he was not talking about Mr Zahawi’s specific case.   2 / [Fire rips through historic London church as public urged to stay away]( Building had links to author Lewis Carroll and Queen Victoria’s son Prince Leopold 3 / [Boris Johnson reveals just how big his advance was for upcoming book]( Publishers HarperCollins announced earlier this month they had acquired the rights to the book 4 /[Britons who sat in dark during National Grid switch off scheme ‘offered as little as 6p back’]( Despite being promised a rebate of up to £20 by the National Grid, some of those who took part say they were offered just a few pence 5 / [British mountaineer has leg amputated after falling at 20,000ft in Argentina]( The British national reportedly fell near Condor’s Nest, the site of a high base camp     The Big Question What is the ‘offensive’ police code name for the Nadhim Zahawi tax probe? Friends of [Nadhim Zahawi]( have questioned the decision by police to name their secret [inquiry into his tax affairs](after a spikey orange tropical fish. The National Crime Agency, which alongside HMRC was involved in [probing Tory chairman Mr Zahawi’s finances](, gave the investigation the codename Operation Catalufa. The catalufa is a species of ray-finned fish, orange in colour, with large eyes, whose habitat is the deep waters of the [Pacific Ocean](. Up to 50cm in length and found off the coastline of Mexico, it is known as “Popeye Catalufa” because of its bulging eyes which are suited to its carnivorous and nocturnal lifestyle. It is also described as having a “wide oval body and upturned mouth”. The NCA says codenames for their inquiries are chosen at random. However, some allies of Mr Zahawi have questioned whether the “offensive and unfunny” name was a joke at his expense. The Independent has seen confidential official correspondence where the term is used in relation to the cabinet minister. [For the full story click here >](   Enjoying this newsletter? Unlock unlimited, ad-free reading on the website and in The Independent app when you subscribe – plus, benefit from our [welcome offer when you join today](. Watch/ [Moment baby zebra makes first steps immediately after being born](   NUMBER OF THE DAY 220 million – The world’s first worm dating back 220 million years has been unearthed in Arizona. [Read more here](   QUOTE OF THE DAY “I personally have been a Tory for a long time but I think this government should stand down now and give the Labour Party a go at it.” – Self-professed “long-time Tory” Sir Rod Stewart has called for the government to step down over the NHS crisis. 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