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6 June 2013 Peter Ward1e Chief Executive Electoral Commission 3 Bunhill Row London C1Y 8YZ

Dear Mr Wardle, I am writing to ask for guidance on party funding, particularly with regard to donations in the form of shares. The Labour Party registered a donation of har s in JML worth 1.65 million in January 2013, from Mr John Mill. By making a donation in shares rather than as a single cash dividend, it has been reported that Mr Mill managed to avoid a potential tax charge of 724,710. Alternatively it is estimated that to make a donation of 1.65 million in cash Mr Mills would have had to earn 3.1 million and pay 1.46 million to HM Revenue and Customs. The Labour Party will also not be required to pay tax on the annual dividend payments if they continue to make a loss. Though this unique form of donation obeys th letter of the law, I am deeply concerned that using this shares scheme to avoid a tax charge tarnishes the integrity of our system of political funding. I would be very grateful if you could clarify for future reference the Electoral Commission's position on tax avoidance and political donations. Your sincerely,


Member of Parliament for Selby and Ainsty

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