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.

Under this regulatory change, entities must provide the tax authorities with information relating to the natural persons who are the actual owners of the same, and the tax authorities may transfer certain information in this regard to be used in the procedures for analyzing the conflict of interest that must be carried out in the context of the Recovery, Transformation and Resilience Plan.

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

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

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

The application of the Mechanism should be carried out in accordance with the principle of sound financial management, including the effective prevention and 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 the General State Budget for the year 2023, regulated the procedure for systematic and automated analysis of the risk of conflict of interest in the procedures that execute the Recovery, Transformation and Resilience Plan , based on a computer tool called MINERVA, entirely developed with the technical means of the Tax Agency.

This tool verifies the existing relationships between 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. The aim is to prevent situations in which there is a conflict of interest.

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

For its part, the amendment to article 95 of the LGT allows the data and information handled by the tax administration to be kept confidential, in order to communicate the results of the analysis of the conflict of interest on beneficial 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.

This ensures the smooth and secure management of European Funds through an appropriate 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 .