BUSINESS Secretary Kwasi Kwarteng failed to clarify where Rishi Sunak’s wife Akshata Murty pays tax on foreign income while defending her in the media today, as reports emerged that she has been using “non-domicile Status”.

On Wednesday it was reported by The Independent that Murty had been using non-domicile status as recently as April 2020, two months after Sunak started setting tax policy in the UK. This prompted Kwarteng to attempt to clarify the issue through British media outlets on Thursday morning but failed to explain where Murty was paying tax on foreign income.

Kwarteng told BBC Radio 4’s Today programme: “She pays tax here on UK income but pays tax abroad on foreign income.”

Pressed on where abroad, he said: “Well, I don’t know. I’m not an expert on her tax affairs.”

Kwarteng could not say whether she pays all foreign tax in India, or in a tax haven such as the Cayman Islands.

Asked if she is a tax avoider, Kwarteng said: “I don’t know anything about her tax affairs.

“What I do know is that she has been very clear about the fact she’s an Indian citizen, once she’s lived here for 15 years the non-domiciled status falls away so that will happen in a few years, I don’t know when.

“As far as I’m concerned that’s good enough for me and I think we can move on from that story.”

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Kwarteng has said it is “completely unfair” to scrutinise her tax affairs as she was not a politician.

Talking with Sky News, he said: “It’s completely unfair to be bringing someone who is not a politician and essentially attacking them in a way that’s happening.”

The Business Secretary later said: “I’m not an expert on her financial arrangements but I think absolutely people have a right to pursue their own business arrangements.

“I’ve just come here to say very clearly that I think her tax affairs are a matter for her.”

Kwarteng also appeared on BBC Breakfast where he tried to assure viewers that Murty had not been “sheltering” herself from paying tax in the UK.

He said: “I was very interested in the transparency, it was very clear to me what’s happened.

“I think the Chancellor has been very honest, very clear, and she’s after all a private citizen, she’s not a politician, and I think her affairs were completely transparent, and there’s no hint of any wrongdoing at all. So, I think everything is in order in that way.”

Asked if she was sheltering herself from tax, Kwarteng said: “I don’t think that’s true at all, sheltering sounds as if you’re evading things."

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However, Labour shadow climate change secretary Ed Miliband asked whether Murty’s non-dom status was ethical, despite being legal.

Speaking to Sky News, Miliband said: “Non-dom status is legal but I think we should be clear that non-dom status is used to… pay less tax than you otherwise would.

“You don’t have to be a non-dom. You choose to do it… I think there are legitimate questions that need to be asked of Rishi Sunak about this.”

Asked if the move is above board, he said: “I think it’s legal, but is it right?”

He also added that the Chancellor should issue an “explanation” about his wife’s decision.

“He is the UK Chancellor asking people to pay more in taxes. Is it right that his immediate family is sheltering from UK taxes? I think Rishi Sunak and his family should reflect on that.”