The First Minister said his party had started talks with HMRC in the wake of former chief executive Peter Murrell embezzling more than £400,000.
The SNP has started talks with the taxman to see if VAT was illegally reclaimed on purchases made by former chief executive Peter Murrell as he embezzled more than £400,000, John Swinney has revealed.
The SNP leader told Holyrood the party had “opened up discussions” with His Majesty’s Revenue and Customs on the matter.
It came as Scottish Labour leader Anas Sarwar raised concerns that the SNP could have reclaimed the VAT on purchases such as the £124,000 motorhome – which was recorded as a van on paperwork.
The Scottish First Minister, speaking after the issue was raised at First Minister’s Questions, said he did not know how much the SNP could potentially owe the taxman.
But Mr Sarwar told MSPs: “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.”
Explaining that political parties are able to claim back VAT on purchases linked to their operating costs, Mr Sarwar said that some of Murrell’s fraudulent purchases “may have been included in any reclaimed VAT”.
The court has heard how Murrell used fake invoices and expenses, as well as party charge cards, to buy scores of items, which as well as the campervan included two cars, expensive watches and pens, and an egg poacher set costing £23.98.
Speaking about the possible tax implications, however, the Scottish Labour leader said: “The £124,000 campervan recorded in the system as a van, would be subject to 20% VAT.
“The £3,000 robotic lawnmower, recorded as legal fees, would be subject to VAT, or the ridiculous luxury egg poacher, recorded as an ethernet cable, would be subject to VAT.
“All potentially illegally reclaimed from HMRC.”
Mr Swinney said: “The issues in relation to the implications of Peter Murrell’s admission of guilt about the embezzlement of Scottish National Party funds does have potential implications in relation to the payment of taxation.”
But he stressed his party had began talks on this with the authorities.
The First Minister added: “It has been important that we proactively have raised these issues with HMRC in the light of what we now know about the criminal conviction.”
His comments came as he also confirmed that the SNP has instructed its lawyers to try to reclaim the cash that Murrell – who at the time of his offences was married to Nicola Sturgeon – had “stolen” from the party.
The move was agreed unanimously at a meeting of the party’s ruling national executive committee on Wednesday night.
Speaking about the meeting, Mr Swinney said: “We agreed unanimously to act to secure the party’s interests by instructing our solicitors to begin action in court to recover the money that has been stolen from us.”
However, he again dismissed pleas from Mr Sarwar for a Holyrood inquiry into what happened.
The Scottish Labour leader had insisted it was “beyond doubt” that a probe should take place, saying the police investigation which led to Murrell’s conviction had “raised profound questions about transparency and accountability at the heart of government”.
But Mr Swinney told him: “We’ve had a police investigation, there can be no higher investigation and more forensic investigation than a police investigation and I therefore do not support the establishment of a parliamentary inquiry, because we have had an investigation and it convicted somebody for embezzling from my party’s funds.”
