SNP may have claimed back tax on Murrell's illicit purchases - Swinney

The SNP may have claimed back tax on illicit purchases made by its former chief executive during his £400,000 embezzlement, the first minister has said.

Peter Murrell - the estranged husband of Nicola Sturgeon - used party funds to buy goods including cars, a motorhome, cosmetics and games consoles over a 12-year period.

At First Minister's Questions, Scottish Labour leader Anas Sarwar pressed Swinney on whether VAT on these purchases had been reclaimed illegally.

The SNP leader said his party had written to HMRC due to fears the embezzlement may have "implications in relation to tax".

He told parliament that the party was in talks with UK tax authorities to ensure it "delivers the highest levels of financial governance".

Sarwar noted that political parties are able to reclaim VAT on some purchases.

He highlighted that Murrell had doctored invoices for a £124,550 motorhome, a £3,070 robotic lawnmower and a £23.98 egg poacher to register them as legitimate business expenses.

The Labour MSP said the VAT claims could amount to 20% of the transactions, but it is not yet clear if the SNP would have been able to reclaim that much.

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.

He added that it was "beyond doubt that there should be a parliamentary inquiry" into the case.

Scottish Conservative leader Russell Findlay sought reassurance that Murrell "didn't get his sticky fingers on any public money".

Swinney confirmed that the SNP had contacted HMRC about the possible fraudulent tax claims.

The first minister reiterated his opposition to an inquiry, telling the chamber there could be "no higher and more forensic investigation than a police investigation".

He insisted that Murrell had not embezzled public funds given to the party as "policy development" grants from the Electoral Commission, pointing to a statement from the watchdog in which it said it had seen no evidence of such activity.

After FMQs, Swinney told reporters that he did not know how much the party may owe the tax authorities, but said he was "very confident" it would have the funds to make any repayments.

Earlier, the first minister confirmed his party was seeking compensation from Murrell.

He said the SNP's ruling body, the national executive committee, has backed court action to "recover the money that has been stolen from us".

In a letter to party members, SNP leader John Swinney said the SNP would apply for compensation under the Proceeds of Crime Act for the recovery of the £400,310.65.

The first minister also said the SNP would begin civil action against Murrell, which could be used in the event that the party does not recoup its funds through the criminal court.

Murrell's lawyer indicated this week that the former chief executive had enough funds to repay the sum he embezzled from the party.

However, this money would be paid to the state if Murrell is served a confiscation order.

The SNP hopes to recoup its losses through a separate compensation order from the court.

Swinney said: "I take the good financial management of the Scottish National Party incredibly seriously and I am confident that we now have high standards of financial governance, with appropriate checks and balances in place."

In his letter, which has been seen by BBC Scotland, the first minister said there had been a significant increase in donations from party members since Murrell pleaded guilty last Monday.

Swinney gave his "personal assurance that every penny that is raised by the SNP will be spent on our efforts to secure Scottish independence."

Meanwhile, former SNP treasurer Douglas Chapman - who quit in 2021 after claiming he was not given enough information to do the job - claimed that those who raised concerns about party finances had been "vilified" by the leadership.

In a social media post, the ex-MP said complaints were ignored and those who raised them "had their careers damaged irreparably by their own party leaders and senior staff at SNP HQ".

Chapman named several high-profile party figures, including Swinney and Nicola Sturgeon.

Both have denied suppressing complaints.

The first minister, who appointed Murrell as chief executive and served in cabinet throughout his period of offending, said last week that he was "not conscious" of having shut down questions about party finances.

Earlier, it emerged that the SNP was being threatened with a fresh police complaint about its finances.

Activist Sean Clerkin told the Scottish Sun that he was contacting police about the alleged misuse of £667,000 in donations raised for an independence campaign.

That came after Swinney confirmed that the cash had been used on the SNP's "ongoing activity", insisting it had been used as intended on the party's "independence objectives".

Police Scotland confirmed that the matter had been raised with the force - but later said it was not taking further action because the matter had already been investigated as part of the Murrell probe.

Murrell is due to be sentenced on 23 June.