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Labour's net firm in tax dodge.

LABOUR are embroiled in a new donations scandal after an internet company quit the UK for tax reasons.

The party's website was hosted until recently by Freeserve and the company's software disks were given to all 350,000 members.

The internet firm also provided the computer connection between all constituency offices and Labour's Millbank HQ in London.

The SNP claim those donations in kind were worth between pounds 500,000 to pounds 1million. But last week, Freeserve said it was set to move its AnyTime internet service to Madeira.

The island's cheaper VAT rate will save the company pounds 4.5million.

In turn, that will deprive the UK Treasury of the pounds 17.5million the firm pays in VAT.

The Nats denounced Labour's links with Freeserve. SNP shadow Finance Minister Alasdair Morgan said: "This is hugely embarrassing for Labour. Beset by donor scandals, now we have one of their donors dodging tax."
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Publication:Sunday Mail (Glasgow, Scotland)
Date:Aug 4, 2002
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