Hasan Nawaz Listed as 'Deliberate Tax Defaulter' in UK Government Publication

LONDON: Nearly a year after being declared bankrupt by a UK court, Hasan Nawaz, son of former Prime Minister Nawaz Sharif, has been added to the UK government’s list of ‘deliberate tax defaulters’.

The list, published on Tuesday, is a roll of individuals and companies penalized by HM Revenue & Customs (HMRC) for either intentionally making errors in their tax returns or willfully neglecting their tax duties.

Hasan Nawaz’s name appears second in the list, seemingly sorted by descending penalties and taxes owed. Described as a property developer, his addresses are recorded as Avenfield House and 1 Hyde Park Place — a property pivotal in the National Crime Agency’s landmark £190 million settlement with property mogul Malik Riaz in 2019. Land records indicate Hasan Nawaz acquired the property for £42 million in 2016, but family sources claim it was sold the same year.

The default period specified for Hasan Nawaz ranges from April 6, 2015, to April 5, 2016. He reportedly owes £9.3 million in taxes, accompanied by a £5.2 million penalty.

The UK government’s policy of ‘publishing details of deliberate defaulters’ (PDDD) aims to reduce intentional tax defaulting. Names appear on the list if the tax default surpasses £25,000.

A 2018 report from the HRMC stated, “We believe the potential for having their details published will deter individuals from deliberately defaulting. It might also urge deliberate defaulters to come forward and sort out their tax issues. By doing so, they can avoid having their details published.”

Interestingly, the report noted the limited awareness of the publication, suggesting PDDD was “not viewed as an effective deterrent against defaulting on tax obligations.”

“Regarding perceived impact, it wasn’t expected to adversely affect individuals. Some believed it might dissuade people from engaging with businesses whose details were disclosed if the list and its purpose were more widely publicized,” the report added.

In April 2024, Hasan Nawaz was declared bankrupt by the High Court of Justice. The bankruptcy was initiated with a petition filed by HMRC on August 25, 2023, over unpaid debts. The bankruptcy order followed on April 29, 2024, after a creditor’s petition was processed.

HMRC, which routinely files such petitions, initiated this action via its Contracts Management Team in Liverpool.