The Donor
Author | Michael Smyth/Patricia Barratt/Fraser Campbell |
Pages | 35-66 |
Chapter 1 The Donor
INTRODUCTION
1.1 Underpinning the PPERA 2000 is the principle that political donations and loans may only be received from a donor, known as the ‘permissible donor’, who falls within one of certain specified categories. Those to whom the PPERA 2000 restrictions apply (see Chapter 3) may only accept a donation of more than £500 if it is from a permissible donor
1.2 The definition of permissible donor is intended to restrict donors to persons (including companies) who have a connection with the United Kingdom. Amendments introduced by the PPEA 2009 aim to narrow the definition further by requiring individuals to be domiciled and tax resident in the
1 Section 54, PPERA 2000
2 Part IVA, PPERA 2000 (section 71F et seq.).
3 Sections 56(2)(b) and 57, PPERA 2000.
4 The party and the party treasurer are both guilty of an offence where the donation is received from a donor who is impermissible because he does not fall within one of the specified categories (unless the defence in section 56(3A), PPERA 2000 applies) (section 56(3), PPERA 2000). If the donor is impermissible because his identity has not been ascertained, only the treasurer is guilty (section 56(4), PPERA 2000).
5 Part IVA, PPERA 2000 (section 71F et seq.).
36 The Law of Political Donations
United Kingdom. Although these amendments have not yet been brought into effect,
Prohibition on acceptance of donations by impermissible donors
1.3 Section 54 of the PPERA 2000 prohibits the acceptance by a registered party of a donation from a donor who does not fall within one of the categories of ‘permissible donors’ identified in that section. The donor must be a permissible donor at the time the donation is received by the party.
1.4 The party must also refuse to accept a donation if it is not able to ascertain the identity of the donor, either because the donation was given anonymously or, the PPERA 2000 says, ‘by reason of any deception or concealment or otherwise’.
1.5 Parties are required to take ‘all reasonable steps’ to verify or ascertain the identity of the donor, and whether he or she is a permissible donor.
Consequences of acceptance of donations by impermissible donors
1.6 If a party receives a donation from a donor who is not a permissible donor (i.e. a donor who does not fall within one of the categories of permissible donors, or one that is unidentifiable), it must return the donation, or an equivalent amount, to the donor, or to the person who appears to be acting on behalf of the donor.
6 As at April 2012.
7 See paragraphs 1.21–1.35.
8 Section 54(1)(a), PPERA 2000
9 Section 54(1)(b), PPERA 2000
10 Section 56(1), PPERA 2000.
11 In the case of a loan, advice should be obtained before entering into the loan (see page 18, Donations and loans: Guidance for political parties in Great Britain, Electoral Commission, September 2006 (revised version February 2010).
12 Section 56(2)(a), PPERA 2000.
who transmitted the donation, if it is possible to identify such a person, or to a financial institution, if the donor has used any facility provided by an identifiable financial institution. If the party cannot identify either the person who transmitted the donation, or a financial institution, it must send the donation to the Commission.
1.7 Where a party has not returned, but has accepted, a donation from an impermissible donor, the Commission may apply to the court for an order forfeiting an amount equal to the value of the donation.
PERMISSIBLE DONORS
1.8 The following is a list of permissible donors:
(a) an individual registered in an electoral register;
(b) a company—
(i) registered under the Companies Act 2006, and
(ii) incorporated within the United Kingdom or another member state, which carries on business in the United Kingdom;
(c) a registered party, other than a Gibraltar party whose entry in the register includes a statement that it intends to contest one or more elections to the European Parliament in the combined region;
(d) a trade union entered in the list kept under the Trade Union and Labour Relations (Consolidation) Act 1992 or the Industrial Relations (Northern Ireland) Order 1992;
(e) a building society (within the meaning of the Building Societies Act 1986);
(f) a limited liability partnership registered under the Limited Liability Partnerships Act 2000, ...which carries on business in the United Kingdom;
(g) a friendly society registered under the Friendly Societies Act 1974 or a society registered (or deemed to be registered) under the Industrial and Provident Societies Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969; and
13 Section 57(1), PPERA 2000.
14 Section 58, PPERA 2000. The nature of the power to make a forfeiture order was explored in
The Electoral Commission v City of Westminster Magistrates’ Court [2009] EWHC 78 (Admin). This is dealt with further at paragraphs 6.28–6.30, below.
15 Section 54(2), PPERA 2000.
16 For further requirements regarding domicile and tax status, see paragraph 1.21 et seq., below.
38 The Law of Political Donations
(h) any unincorporated association of two or more persons which does not fall within any of the preceding paragraphs but which carries on business or other activities wholly or mainly in the United Kingdom and whose main office is there.
Individuals registered on an electoral register
Meaning of electoral register
1.9 ‘Electoral register’ is defined as meaning any of the following:
(a) a register of parliamentary or local government electors maintained under section 9 of the Representation of the People Act 1983;
(b) a register of relevant citizens of the European Union prepared under the European Parliamentary Elections (Franchise of Relevant Citizens of the Union) Regulations 2001; or
(c) a register of peers prepared under regulations under section 3 of the Representation of the People Act 1985.
1.10 In order to vote in the United Kingdom, an elector must be registered on an electoral register or roll, which is created following an annual autumn canvas of householders, and which depends on residence in a UK constituency.
Before 1985, the only categories of overseas voters were members of the armed forces and of the Crown Service (for example, UK diplomats based in embassies outside the United Kingdom) who were registered as overseas voters and permitted to vote by proxy.
1.11 The Representation of the People Act 1985 permitted the registration of overseas residents as voters in UK parliamentary and European elections, in accordance with the requirements of that Act and those of the Representation of the People Act 1989, as well as related secondary legislation.
1.12 The Electoral Commission has estimated that there are in the region of
5.5 million
17 Section 54(8), PPERA 2000.
18 Section 1(1), Representation of the People Act 1983.
19 Representation of the People Regulations 1986 (SI 1986/1081) and Representation of the People
(Amendment) Regulations 1990 (SI 1990/520) (which revised the 1986 Regulations).
20 This period was originally 5 years, and was increased to 20 years by the Representation of the
People Act 1989. The current period is prescribed by section 141, PPERA 2000.
21 www.electoralcommission.org.uk/news-and-media/public-awareness-campaigns/overseas-voters.
fraction
Entitlement to be on the electoral register
1.13 The Neill Committee had recommended that individuals who were not on the electoral register, but who were entitled to be on it, should qualify as permissible donors,
1.14 This issue was raised in the case of The Electoral Commission v City of Westminster Magistrates’ Court,
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