SNP Faces Tax Probe Over Murrell Embezzlement, June 06

The SNP has contacted the UK tax authority HMRC after admitting it may have illegally reclaimed VAT on personal purchases made by former chief executive Peter Murrell during his £400,000 embezzlement over 12 years. Murrell used party funds to buy cars, a motorhome, cosmetics and games consoles, with doctored invoices to register them as business expenses. First Minister John Swinney confirmed the party is in talks with tax authorities but continues to resist calls for an independent inquiry into the scandal.

What Murrell Bought With Stolen Party Funds

Peter Murrell, the estranged husband of former SNP leader Nicola Sturgeon, pleaded guilty last week to stealing more than £400,000 from the party over a 12-year period. He purchased a £124,550 motorhome, a £3,070 robotic lawnmower, and a £23.98 egg poacher, among other items. Murrell doctored invoices to register these personal purchases as legitimate business expenses. Scottish Labour leader Anas Sarwar noted that VAT claims on these transactions could amount to 20% of the purchase price, though it remains unclear if the SNP would have been able to reclaim that much.

SNP Admits Possible Tax Fraud

At First Minister’s Questions, Swinney acknowledged that the SNP may have claimed back tax on illicit purchases made by Murrell. The party wrote to HMRC due to fears the embezzlement may have “implications in relation to tax.” Swinney told parliament the SNP is in talks with UK tax authorities to ensure it “delivers the highest levels of financial governance.” The SNP’s national executive committee agreed to launch a compensation order to claw back the £400,000 from Murrell, though prosecutors had already begun steps to recoup the stolen cash.

Swinney Refuses Independent Inquiry Despite Pressure

Multiple political figures have called for an independent investigation into how Murrell was able to embezzle funds without detection. Ex-Sturgeon aide Noel Dolan called for a KC from outside Scotland to chair an inquiry. Former Labour First Minister Jack McConnell suggested a joint inquiry between the Scottish Parliament and Westminster. Swinney has rejected all proposals, arguing that “an extensive police investigation that has established serial criminality” was sufficient and that “you cannot get any inquiry more detailed than a police inquiry.”

Scandal Raises Governance Questions

Scottish Labour leader Sarwar described the Murrell embezzlement as the “biggest political and financial scandal in the history of the Scottish Parliament,” condemning a “culture of secrecy and cover-up” in the SNP. Swinney admitted that “there has not been, in every respect, adequate controls in place” when it came to governance of SNP accounts. Conservative leader Russell Findlay sought reassurance that Murrell “didn’t get his sticky fingers on any public money.” Swinney confirmed the SNP had contacted HMRC about the possible fraudulent tax claims but maintained the police investigation was thorough enough.

Final Thoughts

The SNP faces a tax investigation after admitting possible illegal VAT reclaims on Murrell’s personal purchases. Swinney’s refusal to allow an independent inquiry leaves governance questions unanswered and political pressure mounting on the Scottish government.

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