SNP approaches HMRC over possible illegal VAT claims linked to Peter Murrell embezzlement

The SNP has approached HMRC regarding the possible illegal reclaiming of VAT relating to Peter Murrell’s embezzlement.

John Swinney confirmed the move during Thursday’s First Minister’s Questions, accepting Murrell’s claims may have “potential implications in relation to the payment of taxation”.

He said the SNP had “opened up discussions” with HMRC to “proactively” ensure that it was delivering the “highest standards of financial governance”.

Scottish Labour leader Anas Sarwar welcomed the decision but argued it demonstrated the need for a parliamentary inquiry into the matter.

He said: “Can I thank John Swinney for accepting that there could potentially be illegal reclaiming of VAT from HMRC, meaning potential misuse of public money that should not have been claimed because of the fraudulent receipts issued by Peter Murrell.

“But that also demonstrates that this is the biggest political and financial scandal in the history of the Scottish Parliament and it goes far beyond the crimes of Peter Murrell.”

Labour is expected to bring the matter forward for a debate and vote next week.

But Swinney reiterated his opposition to such an inquiry taking place, insisting there was “no higher or more forensic investigation” than the police investigation that had ultimately resulted in Murrell’s conviction.

The first minister also confirmed that the SNP’s ruling National Executive Committee had voted to attempt to recoup some of the cash stolen from it by its former chief executive.

The Crown Office has brought a confiscation order against Murrell under proceeds of crime law, which allows authorities to seize illegally obtained assets. The SNP is applying for a compensation order to claim back some of this, though the process could take several years.

Sarwar also raised the matter of the cash raised by the SNP for a supposed ring-fenced fund to fight a future independence campaign.

He urged the first minister to “apologise to members of the public whose hard-earned cash his party took on false pretences”.

Swinney said that his comments on Wednesday that the money had been spent on SNP activities to support its independence objectives were no different to the position the SNP had taken in 2021.

That cash was raised in two separate fundraisers launched by Nicola Sturgeon – one in 2017, the other in 2019 – and totals £667,000.

Questions about where this money had gone led to Police Scotland’s Operation Branchform into the SNP’s finances which ultimately uncovered Murrell’s embezzlement.

Murrell pleaded guilty to embezzling over £400,000 from the party over a period of 12 years last month. He is due to be sentenced later this month.