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Legal bid 'may leave UKIP broke' Legal bid 'may leave UKIP broke'
(about 1 hour 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 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.The cash would be paid into government coffers rather than being returned to Mr Bown.
'Outrageous' 'Simple error'
But UKIP said it would contest the claim in court, arguing the breach of rules had been the result of a clerical error. But UKIP says it will fight the Electoral Commission in court, arguing the breach of rules had been the result of a clerical error.
Party chairman John Whittaker MEP said: "Mr Bown's been living in this country all his life. Mr Farage said his party was being unfairly victimised by the Commission, at a time when larger parties, such as Labour and the Lib Dems, were under investigation for more serious breaches of the rules on donations.
"He's run a successful business for forty years, giving jobs to people in this country paying substantial tax. "They have come down like a ton of bricks on the only party that receives no state funding whatsoever," he told the BBC.
"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 said UKIP had no debts but added "we don't have a third of a million to hand right at this moment in time.
"It's just outrageous it's the most astonishingly silly decision I could imagine." "And I have to say this piece of legislation was brought in to stop dodgy foreign donations influencing British politics.
"It was surely never intended that it should penalise us and penalise a man who's lived in the UK all his life, and because of a simple clerical error wasn't on it [the electoral register] in 2005.
"And it feels to us like there's an attempt here by the establishment to close us down."
'Impermissible'
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' The 2000 Political Parties, Elections and Referendums Act forbids taking money from certain "impermissible donors," normally people or organisations not registered in the UK.
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".
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 UKIP 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 move concerns more than £5,090 of donations.
Name changeName change
UKIP was formed in 1993 to campaign for Britain's exit from the European Union.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.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.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. Last month two Tory peers, Lord Pearson of Rannoch and 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".Lord Pearson, who has raised funds for the Conservatives, urged Tory donors to switch sides as UKIP "needs the money".
The Electoral Commission is also preparing to take legal action against the Socialist Labour Party over £5,090 of donations.