The Scottish National Party (SNP) could face a formal investigation by HM Revenue and Customs (HMRC) over potential VAT fraud connected to Peter Murrell's embezzlement of party funds. First Minister John Swinney confirmed to MSPs that the party has already contacted the UK tax authority regarding 'potential implications in relation to the payment of taxation'.
The admission came after Scottish Labour leader Anas Sarwar revealed his party had written to HMRC, urging a 'full investigation into this potential defrauding of the public purse'. Sarwar highlighted that political parties can reclaim VAT on purchases related to operating costs, suggesting that fraudulent purchases recorded with phony receipts may have been included in reclaimed VAT.
Sarwar cited examples from Murrell's embezzlement, including a £124,000 campervan recorded as a van, a £3,000 robotic lawnmower recorded as legal fees, and a luxury egg poacher recorded as an ethernet cable. He argued that these items would be subject to 20% VAT if purchased legitimately.
Murrell, the former SNP chief executive and husband of Nicola Sturgeon, pleaded guilty last week to embezzling £400,000 from the party over a decade. The funds, which came 'principally' from members' fees and donations, were used for luxury purchases.
Swinney defended the SNP's actions, stating that discussions with HMRC had already begun. 'Peter Murrell's embezzlement of SNP funds does have potential implications in relation to the payment of taxation,' he said. 'That's why the SNP has already opened up discussions with HMRC on exactly that point.'
Scottish Liberal Democrat leader Alex Cole-Hamilton called for a parliamentary inquiry, criticising the government for blocking it. He also highlighted the lack of a mechanism to recall MSPs for misconduct, noting that Westminster has such a power but Holyrood does not, due to SNP opposition.
