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The PM said Sir Laurie Magnus's inquiry made clear there had been a "serious breach of the ministerial code". Rishi Sunak asked for the probe after Mr Zahawi admitted paying a settlement to HMRC, including a penalty.
Sir Laurie said the MP had missed many chances to be open about his tax. In his report for Mr Sunak, he wrote: "Mr Zahawi's conduct as a minister has fallen below the high standards that, as prime minister, you rightly expect from those who serve in your government."