Hassan Nawaz declared deliberate tax defaulter in UK

ISLAMABAD: Hassan Nawaz Sharif, son of former prime minister Nawaz Sharif, has been declared a deliberate tax defaulter in the United Kingdom, with British authorities listing him among individuals who intentionally failed to pay taxes. 

According to the latest records from HM Revenue and Customs (HMRC), Hassan Nawaz did not pay nearly £9.4 million in taxes for the period from April 5, 2015, to April 6, 2016.

As a result, the UK tax authority has imposed a £5.2 million penalty on him. 

This comes as a major setback for Hassan Nawaz Sharif, who was declared bankrupt last year. Legal experts in Britain suggest that despite his bankruptcy, authorities can still recover the penalty imposed on him, as UK laws do not waive tax fraud penalties even in cases of insolvency.

Experts further indicate that the allegations against Hassan Nawaz could become more serious. 

Responding to the HUM Investigation Team’s queries, Hassan Nawaz said that the British courts had already declared his bankruptcy, which was officially published in the UK Gazette a year ago. He dismissed the latest default listing as a re-publication of an old issue by a different British department. 

On the other hand, HMRC report showed a current list of deliberate tax defaulters in UK revealing that each entry on this list is specific to the default dates to which it refers. The published person may have changed their behavior and the published address may have the same name as the published business but could be under completely new management. Amounts in the list relate to the tax/duty on which penalties are based and the penalties charged, where the penalty meets the criteria for publishing under the Publishing Details of Deliberate Defaulters legislation. The list does not necessarily represent the full default of the taxpayer.

Hasan Nawaz further told that last year, London’s High Court of Justice declared one of his companies bankrupt following a case filed by the UK’s tax and revenue department. Official records from the UK Gazette indicate that Hassan Nawaz, a resident of Flat 17, Avenfield House, and director of multiple companies, was declared bankrupt under case number 694 in 2023. 

HUM Investigations further learnt that Hassan Nawaz was registered as the director of seven companies. He still holds directorships in five firms, including Quint Gloucester Place Ltd, Flagship Securities Ltd, Quint Paddington Ltd, Q Holdings Ltd, and Flagship Investment Ltd. However, two of his companies have been dissolved. 

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Legal experts point out that a bankrupt individual cannot serve as a company director or be involved in business management unless formally discharged from bankruptcy. Those in default must seek court approval to continue holding a directorship in any company. 

In March 2024, an accountability court in Islamabad acquitted Hassan Nawaz and his brother, Hussain Nawaz, in the Flagship, Avenfield, and Al-Azizia references. The two had faced corruption allegations linked to the Panama Papers scandal in Pakistan.