According to the sources, memoranda by British Liberal Democrats allegedly advising party members to use taxpayers' money for election propaganda were apparently leaked.

The British Daily Mail reported on Thursday that Hilary Stephenson, the campaign and election director for Liberal Democrat Parliament member Nick Clegg, prepared a document that detailed instructions on how to use gray areas in the rules to party members' advantage.

It had seen a memo that told Parliament members how they could use their office expenses and communications allowances for sending leaflets to their constituents, but that the document has now been destroyed, the Daily Mail said.

The Daily Mail further said that Liberal Democrats have accepted almost $750,000 in donations from a businessman who alleges pays minimal tax in the United Kingdom.

It was further reported by the newspaper that the donations make the Liberal Democrats vulnerable to charges of hypocrisy, and Clegg and others have said they are committed to cracking down on tax avoidance.

A Liberal Democrat spokesman has said, "This was a presentation designed to encourage (members of Parliament) to communicate effectively with their constituents. We are proud to be a party that has consistently argued for greater transparency over expenses." (With Inputs from Agencies)