Tag: Akshata Murty

With a New Ad, Labour Doubles Down on Rishi Sunak’s Wife’s Former Tax Status

A series of recent social media posts targeting Sunak have created disagreement within the Labour party.

London: With an advert lashing out at UK Prime Minister Rishi Sunak’s wife’s former non-dom status, the Labour Party has doubled down on its controversial campaign. Non-dom status, or a non-domiciled individual, refers to a UK resident whose permanent home, or domicile, is outside the UK.

In its latest advert featuring another picture of Sunak, Labour accused the prime minister of “raising taxes for working people” while his family “benefitted from the non-dom tax loophole”.

The advert on Twitter added, “A Labour government would freeze council tax this year, paid for by a proper windfall tax on oil and gas giants. And we’d scrap the Tories’ non-dom tax loophole.”

Akshata Murty, Sunak’s wife and daughter of the millionaire businessman N.R. Narayana Murty who founded Infosys, was revealed to possess a unique tax status last year, purportedly saving her millions of dollars. However, she has subsequently declared that she will pay UK taxes on all of her worldwide income.

According to The Guardian, the shadow chief secretary to the Treasury, Pat McFadden, refused to clarify whether any subject was “off-limits for political criticism, but claimed that all of the topics brought up so far were only emphasising the Conservative performance in office”.

Earlier, he told Sky News: “Last week we pointed out the record on crime, particularly in relation to sexual offences. This week, we’re focusing on the economy, the cost of living, mortgages, council tax, people’s ability to pay their bills, and so on. These are legitimate areas for public debate.”

“And a really important point I come back to underlying it all is that we are not going to accept a political narrative that says every time the Tories change the leader, every year or two, the slate is wiped clean, and nothing that went before counted.

“British politics can do better than a new iteration of a Conservative government every couple of years.”

According to other posters, Sunak thinks adults convicted of gun possession with malice shouldn’t serve prison time. Another advertisement posted by Labour implies that the prime minister opposes criminalising theft.

With a campaign last week that claimed Sunak did not believe child sex abusers should go to prison, the party caused a stir. The campaign has been dubbed “gutter politics”, and several of Keir Starmer’s own MPs have voiced their displeasure, according to The Independent.

The Conservatives disregarded Labour’s most recent advertisement. A Tory leader while speaking to The Guardian said, “This is the height of hypocrisy from a party which has already made £90bn of unfunded spending commitments and whose leader stands to benefit from a bespoke, tax-unregistered pension scheme unavailable to others.”

“Rishi Sunak has a plan to halve inflation, grow the economy, and reduce debt. Sir Keir [Starmer, the Labour leader] only has a plan – to play politics on Twitter.”

Only two members of Starmer’s team have shared all three of the attack advertisements, and nearly half of the team hasn’t shared any of the ads on social media.

The term “non-dom” refers to a person who was born abroad, and resides mostly in the UK, but yet considers another nation to be their “domicile” or place of permanent residence.

In Murty’s instance, she allegedly avoided paying up to £20 million in UK tax by claiming that the country is not her permanent residence. She was shelling out £30,000 a year to keep the status.

When it comes to non-dom status, a person’s citizenship is irrelevant because anyone who was born in the UK or who now resides there can declare themselves to be non-dom.

Murty has since abandoned the “remittance basis”, which enables non-doms to hide their foreign income from the UK taxman.

However, Starmer was determined in his campaign and has refused to back down. While writing in the Daily Mail, he categorically mentioned that he stands by “every word” of the adverts so far. 

Claiming Rishi Sunak as One of Our Own Is Totally Misplaced

He is a hardcore British patriot and has bigger domestic and diplomatic issues to deal with.

Indians get excited, sometimes inordinately, every time someone with an ‘Indian’ connection rises to a position of prominence. Often that link with India is tenuous, but that does not stop those who immediately want to claim the person as one of their own.

The fervour that has greeted Rishi Sunak’s elevation to the post of the British prime minister would suggest that he has strong Indian ties, even went to school or college in India. As we know, that is not the case. His grandparents migrated to East Africa from that part of united India that eventually became Pakistan, and his parents were born in that region. They then moved to the United Kingdom where Rishi was born, in Southampton. He went to elite schools and universities there, proceeded to Stanford, and worked for hedge funds.

He has said as a student he had no ‘working class friends’, which he later admitted was a silly thing to say.

He is therefore an Englishman, and an upper class one at that, and has, often enough, expressed his Britishness. He would pass the original Tebbit Test which asked which cricket test team an immigrant would cheer for, and was an avid proponent of Leave during the Brexit vote and explained his stance in the most glowing patriotic terms. He has been a hardcore conservative in every sense and in any deal-making with a foreign country, including India, would push for British interests. As it should be. His ‘Indianness’ such as it is, is therefore moot and remote. He never played the Indian card in his election campaigns.

Also read: Does It Matter that Rishi Sunak Is the UK’s First PM of Indian Descent? Yes.

But to his rah-rah Indian supporters, these things matter not a whit. Two factors have played a role – his ethnicity, and his religion. 

His grandparents and parents are of south Asian stock and so is he, which makes him an ‘Indian’ (more a South Asian really) and also, that he is a Hindu, and one who makes it a point to emphasise that by practice, make him the Right Kind of Person of Indian Origin. He took his oath as Chancellor of the Exchequer, in 2020, on the Bhagwad Gita and he very publicly showed his reverence to the cow – these are huge plus points in his favour to those who have a fixed ideas of who can be called a 100%, pure Indian.

Of course, it doesn’t hurt either that he is married to Akshata Murthy, the daughter of Indian IT czar N.R. Narayana Murthy and his wife Sudha, and is therefore a multi-millionaire, which connects him to India even more. Both were heavily criticised, he for not giving up his Green card after becoming a minister and she for not paying taxes in Britain, a perfectly legal move but one with poor optics, because at that time, he was asking Britons to tighten their belts. What looked dodgy in Britain would not look so in India – the rich are admired in this country, however they may have accumulated their money. 

All this, and his premium education and smartness make Rishi Sunak a much admired boy in India.

Not everyone else of Indian stock gets the same treatment. Kamala Harris, whose mother moved to the US from Madras, got some initial attention when she became the vice-president of the US, but it was noticed that she was foregrounding her African-American heritage more than the Indian one, barring her one clumsy attempt, along with Mindy Kaling, to make masala dosa during the election campaign. She has been dropped.

Other American politicians are ignored or actively disliked, such as Bobby Jindal, who had converted to Christianity or Pramila Jaypal who asked tough questions on Kashmir, leading to external affairs minister S. Jaishankar cancelling his meeting with her.

There are many others of an Indian background in prominent positions in different parts of the world but one wouldn’t know.

File image of Republic of Ireland’s Tánaiste Leo Varadkar. Photo: Reuters

Leo Varadkar, deputy prime minister of Ireland, barely gets noticed in India, just like Antonio Costa, the half-Goan prime minister of Portugal. Mauritius routinely elects prime ministers whose forbears moved as indentured labour to the tiny island in the 19th century, and therefore barely raises a ripple (though the Indians of Mauritius are devout Hindus.) Pravind Jugnauth is the current PM and is an unknown name here. Indian labour was also taken to Suriname in South America and Chan Santokhi, is the president of that tiny country since 2020. And Canada’s Indian politicians, especially Sikhs, are not liked very much on the suspicion that they support pro-Khalistan elements, which is not true in some cases.

Dishy Rishi may be popular with us Indians or the ethnic Indian community in Britain, but he has his critics.

Many Conservative MPs have not forgotten that it was his resignation that started the downfall of the immensely popular Boris Johnson, something the latter’s supporters have not forgotten nor forgiven. And he is also seen as a technocrat, a bit boring and as a politician, quite raw, without much experience in diplomacy or domestic politics. The financial markets may feel comfortable with him, but he won’t get the same comfort with his own party or the opposition Labour Party.

Also read: Can Rishi Sunak Keep Passing the Trevor Noah Test?

India would be furthest from his mind at the moment. His primary task is to manage his country and the party through the economic storm that has hit Britain and threatens to get worse, if the war in Ukraine does not end and energy prices don’t stabilise. Discontent and strikes face him, and this winter promises to be a harsh one for ordinary Britons which will swiftly make him unpopular. Labour is pushing for early elections, which, if things go downhill for the general population, may become inevitable.

As for the much-anticipated trade deal with India, Suella Braverman, who so aggressively spoke out against it, and against allowing more Indian immigrants into the country, is back in Sunak’s cabinet. India cannot expect any special treatment just because he is of Indian origin.

At the end of his two years before the elections, he will have to lead his party in a general elections against a resurgent Labour. If the Conservatives lose, as is being predicted, Rishi Sunak will go down as the prime minister who lost an election, as compared to Johnson who led his party to a victory. Our own Rishi has a tough time ahead of him.

A version of this article was first published on The India Cable – a premium newsletter from The Wire & Galileo Ideas – and has been republished here. To subscribe to The India Cable, click here.

Does It Matter that Rishi Sunak Is the UK’s First PM of Indian Descent? Yes.

In a now infamous radio show, a caller professing to be a Tory Party member stated that he, “along with most people”, didn’t think that Sunak was British. Such views are a reminder that some people still don’t accept British Asian identity to be truly British.

Following his uncontested run at the top job, Rishi Sunak acquires the less-than-coveted title of second successive un-elected British prime minister to take office in 2022. However, coming from Punjabi heritage, he also takes on the more esteemed title of the nation’s first British Asian leader.

Sunak was born in the southern English port city of Southampton in 1980. His father, Yashvir, was a family doctor and his mother, Usha, a pharmacist. They were born and brought up in present-day Kenya and Tanzania, respectively, before moving to the UK. Sunak’s grandparents on both sides were from India and had migrated to East Africa.

Indians share a long history with African traders in the Indian Ocean region – links that were strengthened in the 19th century. During the time of the British empire, and especially following the creation of the East African Protectorate (also known as British East Africa) in 1885, many Indians migrated to the region, which was then under British control. The Indian population grew rapidly and prospered economically.

Many Indian immigrants and their descendants remain in East Africa today, but significant numbers left in the second half of the 20th century. In the 1960s, the region became a less hospitable place for Indians, most infamously evidenced by the expulsion of the Indian minority from Uganda under the orders of then-president Idi Amin. It was at this time that a significant proportion of the Indian diaspora left Kenya and Tanzania. Instead of returning to India, many settled in the US, Canada and the UK.

Sunak’s parents may have been born in East Africa, but his cultural affinity lies with his Indian roots. He is a practising Hindu and does not, for example, eat beef. As he said in a 2015 interview:

British Indian is what I tick on the census, we have a category for it. I am thoroughly British, this is my home and my country, but my religious and cultural heritage is Indian, my wife is Indian.

A dream – for some

The Sunaks’ personal family history could be read as a testament to the British dream: the idea that the UK is a land of opportunity where, no matter where you come from, if you work hard, you can make it right to the top. The formula for success is simple hard work and determination.

Both his parents studied in the UK – his father, medicine at the University of Liverpool, his mother, pharmacy at my own institution, Aston University. Sunak has spoken about the sacrifices his parents made to give him “opportunities they could only dream of. But it was Britain, our country that gave them, and millions like them, the chance of a better future.”

Not all immigrants, of course, get to afford for their children the best education that money can buy – no matter how strong their work ethic. Privately educated at Winchester, one of England’s oldest and most expensive public boarding schools, Sunak’s upbringing was undoubtedly privileged. He followed the well-worn path of many in the British political elite, studying politics, philosophy and economics at Oxford. After graduating he entered the world of investment banking, landing a job with Goldman Sachs before going to Stanford University in the US to complete an MBA.

FILE PHOTO: Conservative leadership candidate Rishi Sunak, his wife Akshata Murthy and their daughters Anoushka and Krishna attend a Conservative Party leadership campaign event in Grantham, Britain, July 23, 2022. Photo: Reuters/Peter Nicholls

He married into wealth. His wife, Akshata Murty, is the daughter of an Indian billionaire, NR Narayana Murthy, co-founder of Infosys. Her shares in her father’s company make her one of the richest women in the UK. The couple have a combined wealth of £730 million. Sunak can thereby allegedly lay claim to another title – the richest man to ever sit in the House of Commons.

A scandal over his wife’s non-domiciled tax status threatened to end Sunak’s career less than a year ago but he somehow managed to recover.

Acutely aware of the potential for his fortune to jar with the experiences of the public, Sunak ensures that his image is carefully curated (with the help of a PR company). Choreographed snaps and videos more akin to a social media influencer than a politician have characterised his every move since becoming a cabinet minister in Boris Johnson’s government in 2020.

This is nevertheless a big moment. Whatever the mixed feelings are around his personal fortune, becoming the first non-white leader of the country is important. In some ways, the Conservative party has a lot to be proud of when it comes to promoting ethnic minority colleagues. In Liz Truss’s administration, ethnic minority politicians held three of the key posts: chancellor of the exchequer, home secretary and foreign secretary – albeit only for a short while.

However, they were all also, like Rishi Sunak, privately educated. There is certainly room for a specific kind of diversity in the Conservative Party.

Interestingly, Sunak was not popular with the party’s membership when he first ran for the leadership in the summer of 2022. A possible explanation – and one which certainly warrants further research – is that the membership is less comfortable with an ethnic minority leader than it lets on. In a now infamous radio show, a caller professing to be a Tory Party member stated that he, “along with most people”, didn’t think that Sunak was British. While this was the view of one caller on a radio show, such views are a reminder that some people still don’t accept British Asian identity to be truly British.

The prime minister of India, Narendra Modi, was quick to congratulate Sunak, referring to him as “the ‘living bridge’ of UK Indians”. In the difficult waters of British and indeed international politics, all eyes will be watching to see how well the bridge stands.The Conversation

Parveen Akhtar, Senior Lecturer: Politics, History and International Relations, Aston University.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

UK Ministerial Ethics Advisor Clears Rishi Sunak on Wife’s Tax Status

The probe further made revelations around Sunak having a US permanent resident’s Green Card two years after being appointed Chancellor of the Exchequer.

London: An independent ministerial ethics advisor to the UK government on Wednesday, April 28, cleared Chancellor Rishi Sunak of any wrongdoing over his wife Akshata Murty’s tax status and his possession of a US permanent resident’s Green Card while in office.

The Indian-origin finance minister had referred himself to Lord Christopher Geidt to investigate any alleged ministerial conduct breaches after revelations that his wife, the daughter of Infosys co-founder Narayana Murthy, did not pay UK tax on her Indian income under her legal non-domicile tax status.

The probe also covered further revelations around Sunak having a Green Card two years after being appointed Chancellor of the Exchequer in the UK Cabinet.

I advise that the requirements of the Ministerial Code have been adhered to by the Chancellor, and that he has been assiduous in meeting his obligations and in engaging with this investigation, Lord Geidt’s advise to Prime Minister Boris Johnson reads.

In reaching these judgements, I am confined to the question of conflicts of interest and the requirements of the Ministerial Code. My role does not touch on any wider question of the merits of such interests or arrangements, he adds.

Also Read: Bowing to Pressure, Akshata Murthy Agrees to Pay British Tax on Her Global Income

There were no allegations of lawbreaking, but Sunak and his wife faced media and Opposition attacks with allegations of inappropriate conduct for the official in charge of taxation and the economy at a time when Britain is facing a cost-of-living crisis fuelled by soaring energy prices.

Geidt, the adviser on ministers’ interests, found two instances where Murty’s tax status could have given rise to a conflict of interest for Sunak, but said in both cases Sunak had dealt with them properly and openly. He also concluded that there was no inherent conflict of interest in Sunak holding a Green Card.

A Green Card, known officially as a Permanent Resident Card, is a document issued to immigrants to the US as evidence that the bearer has been granted the privilege of residing permanently in the US.

Earlier this month, it emerged that Murty owns a stake in Infosys. Geidt notes in his findings that the shareholding was properly declared and that the Indian software firm has held no UK Treasury contracts during Sunak’s time in office.

Sunak, a 41-year-old former hedge fund manager, had been seen as a likely successor to Conservative Prime Minister Boris Johnson, until the financial revelations raised questions about his judgment and damaged his sure-footed image.

He has also been fined by police, along with Johnson and some 50 others, for attending a party in the Prime Minister’s office in 2020 that broke coronavirus lockdown rules at the time.

Geidt answers directly to the UK Prime Minister, and last year he cleared Johnson of breaking the ministerial code by failing to disclose that a Conservative party donor had funded a pricey refurbishment of the his official Downing Street residence.

(PTI)

Boris Johnson and Rishi Sunak To Be Fined Over Lockdown Parties

Police have been investigating 12 gatherings at Johnson’s Downing Street office and the Cabinet Office after an inquiry found his staff had enjoyed alcohol-fuelled parties.

London: Britain’s Prime Minister Boris Johnson and his finance minister Rishi Sunak are to receive fines for breaching strict coronavirus lockdown rules, the government said on Tuesday, prompting calls for them both to resign.

Police have been investigating 12 gatherings at Johnson’s Downing Street office and the Cabinet Office after an inquiry found his staff had enjoyed alcohol-fuelled parties.

The British leader said he had attended a few of the events, but has always denied knowingly committing any wrongdoing.

“The prime minister and chancellor of the exchequer have today received notification that the Metropolitan Police intend to issue them with fixed penalty notices,” a government spokesperson said.

“We have no further details, but we will update you again when we do.”

A spokesperson for Johnson’s wife Carrie said she would also be fined.

Some of the gatherings took place when people could not attend funerals or say farewell to loved ones dying in hospital because they were following rules set by Johnson’s government.

After the events were first reported in late 2021, Johnson said there were no parties and that all rules were followed.

He later apologised to parliament for attending one event, which he said he thought was work-related and also said sorry to Queen Elizabeth for another at which staff partied on the eve of her husband’s funeral.

‘Must resign’

Opponents said he and Sunak had misled parliament and must quit.

“Boris Johnson and Rishi Sunak have broken the law and repeatedly lied to the British public. They must both resign,” said Keir Starmer, leader of the main opposition Labour Party.

The Liberal Democrats called for parliament to be recalled immediately from its Easter holiday and for there to be a vote of no-confidence in Johnson.

However, the prime minister’s immediate future will be determined by lawmakers in his own Conservative Party, who can trigger a leadership challenge if 54 of the 360 who sit in parliament demand a confidence vote.

Earlier this year a number of Conservatives called for him to quit as public trust plummeted over the “partygate” affair and support for the government shrank. But the initial outcry was dampened by the Ukraine war in which Johnson had sought to play a major role in rallying Western nations against Russia.

The news caps a terrible week for Sunak, who had also told parliament he had not attended any parties.

He has been under fire over his personal finances, his wife’s tax arrangements and the disclosure he only gave up a US “green card” – an immigration status intended for permanent US residents – after he became finance minister in 2020.

On Sunday, he asked Johnson to refer his ministerial declarations to Christopher Geidt, the independent adviser on ministers’ interests, to determine whether he had stuck to the rules on financial declarations.

That came after his wife Akshata Murty, owns about 0.9% of Indian IT giant Infosys, confirmed that she had non-domiciled tax status, meaning she did not pay tax on earnings from outside Britain. She said she would pay British tax on foreign income on Friday after days of criticism.

The announcement from Johnson’s office came hours after the police said they had made more than 50 referrals for fixed penalty notices, or fines, to those who had attended the illegal gatherings at Downing Street or other government offices.

“We are making every effort to progress this investigation at speed, this includes continuing to assess significant amounts of investigative material from which further referrals may be made,” police said in a statement.

(Reuters)