For the reasons given, we conclude that the Electoral Commission has misinterpreted the definition of “referendum expenses” in section 111(2) of PPERA. The source of its error is a mistaken assumption that an individual or body which makes a donation to a permitted participant cannot thereby incur referendum expenses. As a result of this error, the Electoral Commission has interpreted the definition in a way that is inconsistent with both the language and the purpose of the legislationThe case was brought by 'Remain' on the grounds that the Electoral Commission had given the Leave campaign duff advice based on an inadequate understanding of the law of which they could also have taken advantage had they been given the same duff advice. You will recall that as a consequence of the Commission's misleading Leave and its general incompetence, it crowed like a cock when it itself judged Leave guilty of breaching the regulations and imposed a fine to equal that levied on the LibDems for their breaches.
Reading the court's judgement one finds a litany of arse-covering, post hoc rationalisation, weasel reasoning and straw-clutching on the part of the Commission.
"...The position of the Electoral Commission on this central issue was somewhat elusive. In its summary and detailed grounds of resistance to the claim, the Commission denied that Vote Leave had incurred expenses by making the AIQ Payments but refrained from identifying any criterion which, if met, would signify that these were “expenses incurred” by Vote Leave. The Commission submitted that making a payment is not the same as incurring an expense and that making a donation is not the same as incurring an expense. But counsel for the Commission did not at that stage offer any positive explanation of what does constitute “incurring an expense” within the meaning of the legislation....
The Electoral Commission has advanced an argument that, even if (contrary to its primary position) the payments in issue in this case were expenses incurred by Vote Leave, they were not incurred “in respect of” advertising but only in respect of making donations to Mr Grimes....
It is not easy to see how, on the Commission’s case in these proceedings, its own guidance can be correct....
Ultimately, the position of the Electoral Commission on what amounts to an “expense incurred” within the meaning of section 111 of PPERA appeared to offer little improvement on the well known elephant test of “I know one when I see one”. That is not a satisfactory approach in circumstances where a person who reports referendum expenses incorrectly is potentially guilty of a criminal offence.
When asked to address these scenarios during oral argument, the initial response of Mr Gordon QC on behalf of the Electoral Commission was to decline to do so on the ground that he did not want to comment on hypothetical examples. That response was unconstructive, as the use of hypothetical examples is a standard method for testing the logic of a legal argument...It is as clear as possible a condemnation of both the Commission's failings during the campaign and its actions subsequently against Vote Leave, which have raised widespread accusations of anti-Leave spite, bias and partiality.
It is difficult to resist the conclusion that in seeking to draw this distinction the Electoral Commission was, in Aristotle’s phrase, “maintaining a thesis at all costs” ...
However, rather than bearing this humiliation in silence with bowed head, the Commission sought to justify its condemnation by the court with a PR offensive -
A democracy needs an authoritative and trusted arbiter of the probity of democratic actions, an unbiased and expert authority vested with moral and legal trust and confidence. Simply, the present Electoral Commission has failed those criteria on every point. It is, as the court found, not fit for purpose as currently constituted and must be reformed. That means both the professional officers, and the appointed Commissioners - who fail utterly to represent the electorate as a whole.