David Cameron's communications director Craig Oliver, and his BBC presenter wife Joanna Gosling, have become embroiled in a tax fraud investigation.
Oliver and Gosling's company, set up to mitigate tax on Gosling's earnings, was turned over to troubled accountancy firm Christopher Lunn in 2008, the Telegraph reports.
The firm, which handles 7,000 clients, had its tax agent status removed by HMRC in late 2010, but a judicial review in February found the Revenue had not followed due procedure and Christopher Lunn's status was restored.
Now, the firm is under investigation for £117m in tax fraud once more in an embarrassing episode for the government.
Gosling and Oliver are working with HMRC and have agreed to pay any tax owed, claiming they acted in good faith on Christopher Lunn's advice.
Oliver replaced embattled communications director Andy Coulson, who resigned earlier this year over his involvement with the News of the World phone hacking scandal.
The new communications director is in charge of presenting the government's spending cuts to the public.
Christopher Lunn himself allegedly inflated accountancy fees, claimed expenditure with no proof, and omitted income from his clients' tax returns.
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