Hassan Nawaz hit with 5.2m pounds tax penalty despite recent bankruptcy

Pakistan
This development is expected to reignite political debates in both the UK and Pakistan
LONDON (Haseeb Arslan) – Hassan Nawaz, son of former Pakistan prime minister Nawaz Sharif, has been hit with a £5.2 million penalty by HM Revenue & Customs (HMRC) for deliberate tax default, despite being declared bankrupt just months ago.
According to the latest update on the UK government’s “Current List of Deliberate Tax Defaulters,” published on March 18, 2025, Nawaz failed to pay taxes amounting to approximately £9.4 million for the period between April 5, 2015 and April 6, 2016.
The £5.2 million penalty imposed by HMRC reflects the severity of the non-compliance, adding further scrutiny to his financial affairs.
The revelation raises significant questions about the implications of Nawaz’s recent bankruptcy, which may complicate efforts to recover the outstanding tax. Under UK insolvency laws, while bankruptcy can discharge certain debts, penalties arising from deliberate tax evasion are typically harder to escape.
Nawaz, who has been involved in multiple business ventures in the UK, has long faced scrutiny over his financial dealings.
Legal experts suggest that HMRC has a range of enforcement mechanisms to recover unpaid taxes and penalties, including asset seizures if necessary. However, given Nawaz’s bankruptcy status, the process may be prolonged.