Skip to main content

Beneficial ownership in the context of Next Generation funds

Law 13/2023, of May 24, has modified article 93 of the LGT, adding a new letter e) in section 1, and article 95 of the LGT, adding a new letter n) in section 1.

By virtue of this regulatory modification, entities must provide the Tax Administration with information regarding the natural persons who are the real owners of the same, and the Tax Administration may transfer certain information in this matter to be used in the analysis procedures. of the conflict of interest that must be carried out in the context of the Recovery, Transformation and Resilience Plan.

On June 21, 2020, the European Council approved the creation of the Next Generation EU program, economic stimulus instrument financed by the European Union, in response to the unprecedented crisis caused by the coronavirus.

To materialize this aid, the European Recovery and Resilience Mechanism was created, an instrument that makes support available to the 27 Member States through direct transfers and loans to increase public investments and undertake structural reforms that contribute to the recovery of the economy and employment and address the main economic and social challenges in the post-COVID-19 years.

Said European Recovery and Resilience Mechanism requires each Member State to draw up a Recovery, Transformation and Resilience Plan .

The implementation of the Mechanism must be carried out in accordance with the principle of good financial management, including the prevention and effective prosecution of fraud, in particular tax fraud and evasion, corruption and conflicts of interest.

In compliance with the above, the one hundred and twelfth Additional Provision of Law 31/2022, of December 23, on General State Budgets for the year 2023, regulated the procedure for systematic and automated risk analysis of the conflict of interest in the procedures that execute the Recovery, Transformation and Resilience Plan , based on a computer tool called MINERVA, fully developed with the technical means of the Tax Agency.

This tool verifies the existing relationships between the members of the contracting bodies and the bodies responsible for granting subsidies, and the participants in these calls, when the contracts or subsidies are financed with Next Generation funds. This is to prevent situations in which there is a conflict of interest.

In order to carry out the conflict of interest analysis, it has been necessary to establish a database of beneficial owners of persons and legal entities. And it is in this context, in order to maintain in an agile and updated manner information on said beneficial owners, in which article 93 of the LGT has been modified to request that this information be communicated. information in certain tax returns. The foregoing must be understood without prejudice to the fact that the national base of real ownership is established by the Ministry of Justice, responsible for these purposes, with the participation of Notaries and Registrars.

For its part, the modification of article 95 of the LGT allows lifting the confidentiality of the data and information managed by the tax administration, to communicate the results of the analysis of the conflict of interest regarding real ownership and family ties, to those responsible for the operations that execute the Recovery, Transformation and Resilience Plan, so that, where appropriate, they can adopt the appropriate conflict of interest prevention measures.

In this way, the agile and secure management of the European Funds is guaranteed through an adequate ex ante analysis of the conflict of interest.

You can consult the full text of the Law at the following link: Law 13/2023, of May 24 .