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The attack on Britain’s Finance Minister, Rishi Sunak, Chancellor of the Exchequer, has taken a heavy political toll on him and his wife, Akshata Murthy. The Opposition is targeting Akshata, the daughter of Infosys co-founder Narayana Murthy, for not paying taxes due to her non-domicile tax status. She has now stated to the BBC that she will begin paying UK tax on “all worldwide income.” Sunak’s wife, Akshata, has done diddly squat wrong in the eyes of British law – she is entitled to not pay certain UK taxes under UK law. Nonetheless, the Finance Minister’s wife, who garners tens of millions of dollars but pays no taxes on a large portion of it, creates a negative image. It made it to the front pages of the British newspaper.
The minister in the United Kingdom has accused his naysayers of launching a “smear” campaign against his wife.
Sunak told The Sun before his wife’s announcement that “it would not be reasonable or fair to ask her to sever all ties with her country simply because she happens to be married to me.”
“She adores her homeland. “She loves hers as much as I do,” he said, adding that “every penny she earns in the UK she pays UK taxes on.” “..
Akshata stated in her statement announcing her decision to pay UK taxes on overseas income that she did not want her husband’s non-domiciled status to be a “distraction.”
She emphasised that she was changing “because I want to, not because the rules require it,” and that the new arrangements would take effect “immediately.”
According to the company’s stock exchange disclosure, Akshata Murty, 42, owns nearly a billion dollars in Infosys. According to the 2021 Sunday Times Rich List, this makes her wealthier than Queen Elizabeth II, whose personal wealth is estimated to be around 350 million pounds ($460 million).
The backlash against Rishi Sunak and Akshata Murty began when the UK government raised taxes during a cost-of-living crisis. Sunak was accused of “breathtaking hypocrisy” by the opposition, who targeted him because of his wife’s non-domicile status, which exempted her from paying UK taxes on her overseas income.
The couple was also targeted after Infosys did not close its Moscow offices in the aftermath of Russia’s invasion of Ukraine, with Akshata accused of receiving “blood money” in dividends. As a result, the tech giant decided to close its Russia office.
Perception matters in politics, and Sunak’s chances of becoming Prime Minister have taken a significant hit, as reflected in the British betting market.
Sunak was the clear frontrunner to be the next British Prime Minister; a month ago, he had a 35% chance of becoming Prime Minister, three times the odds of the next contender. Sunak’s chances of becoming the next Prime Minister have now dropped to only 12%, a third of what they were before his wife’s tax controversy.
