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Legal bid 'may leave UKIP broke' Legal bid 'may leave UKIP broke'
(about 4 hours later)
The UK Independence Party (UKIP) has said a legal bid to force it to pay back £367,697 of "impermissible" donations could leave it "penniless".The UK Independence Party (UKIP) has said a legal bid to force it to pay back £367,697 of "impermissible" donations could leave it "penniless".
The Electoral Commission has accused the party of breaking the law by accepting money from a donor whose name was not on the electoral register.The Electoral Commission has accused the party of breaking the law by accepting money from a donor whose name was not on the electoral register.
UKIP, which has 10 MEPs, said legal action was disproportionate for what it claims was an honest mistake.UKIP, which has 10 MEPs, said legal action was disproportionate for what it claims was an honest mistake.
Its leader, Nigel Farage, said it could put the party out of business.Its leader, Nigel Farage, said it could put the party out of business.
The Electoral Commission's allegations centre on donations to UKIP by retired bookmaker Alan Bown, who it claims was not properly registered.
'Outrageous'
UKIP argues the legal action is wholly disproportionate for what it is calling "an honest mistake."
Party chairman John Whittaker MEP said: "Mr Bown's being living in this country all his life.
"He's run a successful business for forty years giving jobs to people in this country paying substantial tax you couldn't ask for anyone more British than Alan Bown and yet here's a law designed to prevent political parties getting funding from overseas foreigners.
"It's just outrageous it's a most astonishingly silly decision I could imagine."
UKIP said the breach of rules had been the result of a clerical error.UKIP said the breach of rules had been the result of a clerical error.
Earlier, the party said its accounting systems were reviewed twice a year to ensure they complied with legal requirements.Earlier, the party said its accounting systems were reviewed twice a year to ensure they complied with legal requirements.
'Impermissible donors''Impermissible donors'
It said: "As in the previous year, the party has arranged an audit of the accounts by independent auditors under Electoral Commission guidelines."It said: "As in the previous year, the party has arranged an audit of the accounts by independent auditors under Electoral Commission guidelines."
The 2000 Political Parties, Elections and Referendums Act forbids taking money from certain "impermissible donors".The 2000 Political Parties, Elections and Referendums Act forbids taking money from certain "impermissible donors".
People or organisations not registered in the UK usually cause problems.People or organisations not registered in the UK usually cause problems.
Parties have up to 30 days from the date the donation was received to return the money to the donor.Parties have up to 30 days from the date the donation was received to return the money to the donor.
The Electoral Commission says the party is also facing a £1,500 fine for filing its accounts late.The Electoral Commission says the party is also facing a £1,500 fine for filing its accounts late.
It also said it was launching a review of UKIP's "systems for dealing with its financial affairs and meeting statutory reporting requirements".It also said it was launching a review of UKIP's "systems for dealing with its financial affairs and meeting statutory reporting requirements".
It is also preparing to take legal action against the Socialist Labour Party.It is also preparing to take legal action against the Socialist Labour Party.
The move concerns more than £5,090 of donations.The move concerns more than £5,090 of donations.