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| Version 2 | Version 3 |
|---|---|
| Legal bid 'may leave UKIP broke' | Legal bid 'may leave UKIP broke' |
| (20 minutes later) | |
| The UK Independence Party (UKIP) has said a legal bid to force it to forfeit £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. | The Electoral Commission's allegations centre on donations to UKIP by retired bookmaker Alan Bown, who it claims was not properly registered. |
| The cash would be paid into government coffers rather than being returned to Mr Bown. | |
| 'Outrageous' | 'Outrageous' |
| But UKIP said it would contest the claim in court, arguing the breach of rules had been the result of a clerical error. | |
| Party chairman John Whittaker MEP said: "Mr Bown's being living in this country all his life. | 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. | "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." | "It's just outrageous it's a most astonishingly silly decision I could imagine." |
| Mr Bown has donated more than a million pounds to UKIP in recent years. | Mr Bown has donated more than a million pounds to UKIP in recent years. |
| 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". |
| The Electoral Commission is also preparing to take legal action against the Socialist Labour Party. | The Electoral Commission 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. |
| Name change | |
| UKIP was formed in 1993 to campaign for Britain's exit from the European Union. | |
| Since taking over as leader last year, Nigel Farage has attempted to broaden its appeal to attract Conservatives disaffected with David Cameron's leadership. | |
| It is expected to change its name to the Independence Party ahead of May's local elections, when it will campaign on a wide range of policies. | |
| Last month two Tory peers, Lord Pearson of Rannoch, who switched with Lord Willoughby de Broke, defected to UKIP, giving the party its first representation at Westminster. | |
| Lord Pearson, who has raised funds for the Conservatives, urged Tory donors to switch sides as UKIP "needs the money". |