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Political Parties and Elections Bill

Motion A That the House do not insist on its Amendments 11 and 12 to which the Commons have disagreed but do disagree with the Commons in their Amendments 12A to 12F in lieu and do propose Amendments 12G to 12N in lieu of those Commons Amendments. That the House do not insist on its Amendments 11 and 12 to which the Commons have disagreed but do disagree with the Commons in their Amendments 12A to 12F in lieu and do propose Amendments 12G to 12N in lieu of those Commons Amendments. 12G: Insert the following new Clause- "Non-resident donors etc (1) In section 54 of the 2000 Act (permissible donors), in subsection (1) (circumstances in which party may not accept donation), for paragraph (aa) (inserted by section 8 above) there is substituted- "(aa) any declaration required to be made in respect of the donation by section 54A or 54B has not been received by the party; or". (2) In subsection (2)(a) of that section (individuals who are permissible donors), for "registered in an electoral register" there is substituted "who is registered in an electoral register and (subject to subsection (2ZB)) satisfies the condition set out in subsection (2ZA)". (3) After subsection (2) of that section there is inserted- "(2ZA) The condition referred to in subsection (2)(a) is that the individual's liability to income tax for the current tax year (including eligibility to make any claim) falls to be determined (or would fall to be determined) on the basis that the individual is resident, ordinarily resident and domiciled in the United Kingdom in that year. In this subsection "tax year" has the meaning given by section 4 of the Income Tax Act 2007. (2ZB) The condition set out in subsection (2ZA) applies in relation to a donation only if- (a) it is a donation of more than £7,500, or (b) when the donation is added to any other relevant benefit or benefits accruing in the same calendar year as the donation, the aggregate amount of the benefits is more than £7,500. (2ZC) For the purposes of subsection (2ZB)(b) "relevant benefit" and "accruing" have the meaning given by section 62(3A)." (4) After section 54A (inserted by section 8 above) there is inserted- "54BDeclaration as to whether residence etc condition satisfied (1) An individual making to a registered party a donation in relation to which the condition set out in section 54(2ZA) applies must give to the party a written declaration stating whether or not the individual satisfies that condition. (2) A declaration under this section must also state the individual's full name and address. (3) A person who knowingly or recklessly makes a false declaration under this section commits an offence. (4) The Secretary of State may by regulations make provision requiring a declaration under this section to be retained for a specified period. (5) The requirement in subsection (1) does not apply where, by reason of section 71B(1)(a), the individual by whom the donation would be made is a permissible donor in relation to the donation at the time of its receipt by the party." (5) In section 56 of the 2000 Act (acceptance or return of donations: general), after subsection (1) there is inserted- "(1A) In so far as subsection (1) requires steps to be taken to verify or ascertain whether an individual satisfies the condition set out in section 54(2ZA), the requirement is treated as having being complied with if- (a) the individual has given to the party a declaration under section 54B stating that the individual satisfies that condition, and (b) the party had no reasonable grounds for thinking that the statement was incorrect." (6) In Schedule 6 to the 2000 Act (details to be given in donation reports), in paragraph 1A (inserted by section 8 above)- (a) in the heading, at the end there is inserted "or as to whether residence etc condition satisfied"; (b) at the end of that paragraph (which becomes sub-paragraph (1)) there is inserted- "(2) In relation to each recordable donation in the case of which a declaration under section 54B has been given, a quarterly report must either- (a) state that no reason was found for thinking that the declaration was incorrect, or (b) give details of any respects in which the declaration was found or suspected to be incorrect." (7) In Schedule 20 to the 2000 Act (penalties) the following entry is inserted at the appropriate place- (8) Schedule (Declaration as to whether residence etc condition satisfied) has effect. That Schedule makes amendments to- (a) Schedules 7, 11 and 15 to the 2000 Act (control of donations to individuals and members associations; to recognised third parties; and to permitted participants), and (b) Schedule 20 to the 2000 Act (penalties), corresponding to those made by subsections (1) to (7)." 12H: Insert the following new Clause- "Non-resident lenders etc (1) After section 71H of the 2000 Act there is inserted- "71HZA Declaration that residence etc condition is satisfied (1) A registered party must not be a party to a regulated transaction to which this section applies unless the registered party has received a written declaration from each of the other parties to the transaction who is an individual stating that the individual satisfies the condition set out in section 54(2ZA). (2) This section applies to a regulated transaction- (a) if the value of the transaction is more than £7,500, or (b) if the aggregate amount of it and any other relevant benefit or benefits accruing in the same calendar year as the transaction is more than £7,500. (3) For the purposes of subsection (2)(b) "relevant benefit" and "accruing" have the meaning given by section 71M(3). (4) A declaration under this section must also state the individual's full name and address. (5) A person who knowingly or recklessly makes a false declaration under this section commits an offence. (6) The Secretary of State may by regulations make provision requiring a declaration under this section to be retained for a specified period. (7) The reference in subsection (1) to each of the other parties to the transaction does not include any individual who, at the time the transaction is entered into, is an authorised participant in relation to it by reason of section 71Z1(1)(a)." (2) In section 71L of the 2000 Act (offences relating to regulated transactions), after subsection (9) there is inserted- "(9A) An offence cannot be committed under subsection (1), (2), (5) or (6) on the basis that a person (P) ought reasonably to have known that a particular individual does not satisfy the condition set out in section 54(2ZA) (and is therefore not an authorised participant) if- (a) the individual has given a declaration under section 71HZA stating that the individual satisfies that condition, and (b) P had no reasonable grounds for thinking that the statement was incorrect." (3) In Schedule 6A to the 2000 Act (details to be given in transaction reports), after paragraph 1 there is inserted- "Declaration as to whether residence etc condition satisfied 1A In relation to each recordable transaction in the case of which a declaration under section 71HZA has been given, a quarterly report must either- (a) state that no reason was found to think that the declaration was incorrect, or (b) give details of any respects in which the declaration was found or suspected to be incorrect." (4) In Schedule 7A to the 2000 Act (control of loans etc to individuals and members associations), after paragraph 4 there is inserted- "Declaration that residence etc condition satisfied 4A(1) A regulated participant must not be a party to a controlled transaction to which this paragraph applies unless the regulated participant has received a written declaration from each of the other parties to the transaction who is an individual stating that the individual satisfies the condition set out in section 54(2ZA). (2) This paragraph applies to a controlled transaction- (a) if the value of the transaction is more than £7,500, or (b) if the aggregate amount of it and any other relevant benefit or benefits accruing in the same calendar year as the transaction is more than £7,500. (3) For the purposes of sub-paragraph (2) "relevant benefit" and "accruing" have the meaning given by section 71M(3). (4) A declaration under this paragraph must also state the full name and address of the person by whom it is made. (5) A person who knowingly or recklessly makes a false declaration under this paragraph commits an offence. (6) The Secretary of State may by regulations make provision requiring a declaration under this paragraph to be retained for a specified period. (7) The reference in sub-paragraph (1) to each of the other parties to the transaction does not include any individual who, at the time the transaction is entered into, is an authorised participant in relation to it by reason of section 71Z1(1)(a)." (5) In paragraph 8 of that Schedule (offences), after sub-paragraph (9) there is inserted- "(9A) A person (P) cannot commit an offence under sub-paragraph (1), (2), (5) or (6) on the basis that P ought reasonably to have known that a particular individual does not satisfy the condition set out in section 54(2ZA) (and is therefore not an authorised participant) if- (a) the individual has given a declaration under paragraph 4A stating that the individual satisfies that condition, and (b) P had no reasonable grounds for thinking that the statement was incorrect." (6) In paragraph 9 of that Schedule (transaction reports: transactions with authorised participants)- (a) in sub-paragraph (9)(a) and (10), for "paragraphs 2" there is inserted "paragraphs 1A, 2"; (b) in sub-paragraph (10), after paragraph (b) there is inserted- "(ba) any reference to section 71HZA must be construed as a reference to paragraph 4A above;". (7) In Schedule 20 to the 2000 Act (penalties) the following entries are inserted at the appropriate places- 12I: Page 23, line 23, at end insert- "(2A) An order under subsection (1) bringing into force any provision of section (Non-resident donors etc) or (Non-resident lenders etc), or Schedule (Declaration as to whether residence etc condition satisfied), may make such supplementary, incidental or consequential provision as the Secretary of State considers appropriate- (a) for the general purposes, or any particular purposes, of those sections or that Schedule, or (b) in consequence of, or for giving full effect to, any provision of those sections or that Schedule. (2B) An order made by virtue of subsection (2A) may make provision amending this Act or the 2000 Act. An order that makes any such provision must not be made unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament." 12J: Insert the following new Schedule- "DECLARATION AS TO WHETHER RESIDENCE ETC CONDITION SATISFIED Schedule 7 to the 2000 Act (control of donations to individuals and members associations) 1(1) In paragraph 6 of Schedule 7 to the 2000 Act (prohibition on accepting donations from impermissible donors), for paragraph (aa) of sub-paragraph (1) (inserted by Schedule 3 above) there is substituted- "(aa) any declaration required to be made in respect of the donation by paragraph 6A or 6B has not been received by the donee, or". (2) After paragraph 6A of that Schedule (inserted by Schedule 3 above) there is inserted- "Declaration as to whether residence etc condition satisfied 6B(1) An individual making to a regulated donee a donation in relation to which the condition set out in section 54(2ZA) applies must give to the donee a written declaration stating whether or not the individual satisfies that condition. (2) A declaration under this paragraph must also state the individual's full name and address. (3) A person who knowingly or recklessly makes a false declaration under this paragraph commits an offence. (4) The Secretary of State may by regulations make provision requiring a declaration under this paragraph to be retained for a specified period. (5) The requirement in sub-paragraph (1) does not apply where, by reason of section 71B(1)(a), the individual by whom the donation would be made is a permissible donor in relation to the donation at the time of its receipt by the donee." 2 In paragraph 8 of that Schedule (acceptance or return of donations), after sub-paragraph (1) there is inserted- "(1A) In its application in accordance with sub-paragraph (1), section 56(1A)(a) shall have effect as if the reference to a declaration under section 54B were construed as a reference to a declaration under paragraph 6B above." 3(1) Paragraph 10 of that Schedule (donation reports: donations from permissible donors) (as amended by Schedule 3 above) is amended as follows. (2) In sub-paragraph (1)(b), after "paragraph 6A" there is inserted "or 6B". (3) In sub-paragraph (5), at the end of paragraph (aa) there is inserted ", and any reference to section 54B shall be read as a reference to paragraph 6B above". Schedule 11 to the 2000 Act (control of donations to recognised third parties) 4(1) In paragraph 6 of Schedule 11 to the 2000 Act (prohibition on accepting donations from impermissible donors), for paragraph (aa) of sub-paragraph (1) (inserted by Schedule 3 above) there is substituted- "(aa) any declaration required to be made in respect of the donation by paragraph 6A or 6B has not been received by the recognised third party; or". (2) After paragraph 6A of that Schedule (inserted by Schedule 3 above) there is inserted- "Declaration as to whether residence etc condition satisfied 6B(1) An individual making to a recognised third party a donation in relation to which the condition set out in section 54(2ZA) applies must give to the recognised third party a written declaration stating whether or not the individual satisfies that condition. (2) A declaration under this paragraph must also state the full name and address of the person by whom it is made. (3) A person who knowingly or recklessly makes a false declaration under this paragraph commits an offence. (4) The Secretary of State may by regulations make provision requiring a declaration under this paragraph to be retained for a specified period." 5 In paragraph 7 of that Schedule (acceptance or return of donations), after paragraph (a) of sub-paragraph (2) there is inserted- "(aa) section 56(1A)(a) shall have effect as if the reference to a declaration under section 54B were construed as a reference to a declaration under paragraph 6B above; and". 6 In paragraph 9A of that Schedule (inserted by Schedule 3 above)- (a) in the heading, after "paragraph 6A" there is inserted "or 6B"; (b) at the end of that paragraph (which becomes sub-paragraph (1)) there is inserted- "(2) In relation to each relevant donation falling with paragraph 10(2) in the case of which a declaration under paragraph 6B has been given, the statement must either- (a) state that no reason was found for thinking that the declaration was incorrect, or (b) give details of any respects in which the declaration was found or suspected to be incorrect." Schedule 15 to the 2000 Act (control of donations to permitted participants) 7(1) In paragraph 6 of Schedule 15 to the 2000 Act (prohibition on accepting donations from impermissible donors), for paragraph (aa) of sub-paragraph (1) (inserted by Schedule 3 above) there is substituted- "(aa) any declaration required to be made in respect of the donation by paragraph 6A or 6B has not been received by the permitted participant, or". (2) After paragraph 6A of that Schedule (inserted by Schedule 3 above) there is inserted- "Declaration as to whether residence etc condition satisfied 6B(1) An individual making to a permitted participant a donation in relation to which the condition set out in section 54(2ZA) applies must give to the permitted participant a declaration stating whether or not the individual satisfies that condition. (2) A declaration under this paragraph must also state the individual's full name and address. (3) A person who knowingly or recklessly makes a false declaration under this paragraph commits an offence. (4) The Secretary of State may by regulations make provision requiring a declaration under this paragraph to be retained for a specified period." 8 In paragraph 7 of that Schedule (acceptance or return of donations), after paragraph (a) of sub-paragraph (2) there is inserted- "(aa) section 56(1A)(a) shall have effect as if the reference to a declaration under section 54B were construed as a reference to a declaration under paragraph 6B above; and". 9 In paragraph 9A of that Schedule (inserted by Schedule 3 above)- (a) in the heading, after "paragraph 6A" there is inserted "or 6B"; (b) at the end of that paragraph (which becomes sub-paragraph (1)) there is inserted- "(2) In relation to each relevant donation falling with paragraph 10(2) in the case of which a declaration under paragraph 6B has been given, the statement must either- (a) state that no reason was found for thinking that the declaration was incorrect, or (b) give details of any respects in which the declaration was found or suspected to be incorrect." Schedule 20 to the 2000 Act (penalties) 10 In Schedule 20 (penalties) the following entries are inserted at the appropriate places- 12K: Page 59, line 30, at end insert- "( ) In that section as amended by sub-paragraph (1)- (a) after "section 54A" there is inserted "or 54B"; (b) after "paragraph 6A" there is inserted "or 6B"." 12L: Page 60, line 6, at end insert- " In section 71H (authorised participants), after subsection (3) there is inserted- "(3A) For the purposes of subsection (3), any reference to a donation in section 54(2ZB) is to be read as a reference to a regulated transaction."" 12M: Page 61, line 20, at end insert- "( ) In sub-paragraph (3) of that paragraph (inserted by sub-paragraph (2) above), after "paragraph 6A" there is inserted "or 6B"." 12N: Page 61, line 33, at end insert- "( ) In sub-paragraph (3) of that paragraph (inserted by sub-paragraph (2)(b) above), after "paragraph 6A" there is inserted "or 6B"."