Agreement between the Tax Agency and the College of Registrars

• The Registry of Beneficial Ownership, created under the European regulations on the prevention of money laundering, collects information on the beneficial ownership by natural persons, directly or indirectly, of more than 25% of the share capital of an entity.
• The new agreement with the Registrars also contemplates the daily electronic transmission of the information contained in the BORME, including the NIF of legal and natural persons.
• Advanced electronic communication procedures are established for registration applications that the Agency sends to the Registries

September 30, 2021 .- The Tax Agency and the College of Registrars have signed a new agreement that will allow the Agency to access the Registry of Real Ownerships, thus expanding the information it has on this matter to combat those types of tax fraud in which opaque corporate structures are used for fraudulent purposes.

Under the agreement, the Agency will be able to consult and obtain information on the beneficial ownership of shares and stocks of companies listed in the Commercial Register. This information contained in the Registry of Real Ownership is considered relevant for the exercise of the functions entrusted to the Tax Agency in relation to the fight against tax fraud carried out through corporate structures of supposedly independent entities.

The Registry of Beneficial Ownership, created under European regulations on the prevention of money laundering, contains information on the beneficial ownership by individuals, directly or indirectly, of more than 25% of the share capital of an entity, as well as, where applicable, information on the so-called 'assimilated beneficial owners' (directors).

Access to this data by the Tax Agency will facilitate the detection of fraudulent conduct by entities that are apparently not linked to each other, such as reciprocal invoicing to eliminate group profits, the illegal transfer of income to entities without effective taxation, obtaining improper refunds or the concealment of assets.

Strengthening mutual electronic communications

Also as a novelty, and in order to promote the development of tax procedures, the agreement advances in the transmission of registry information on entities, establishing the daily electronic transmission of the information contained in the Official Gazette of the Commercial Registry, so that the College of Registrars will transfer the information from the BORME (First Section and Second Section) to the Agency, including the identification by NIF of legal entities and, if available, also of natural persons.

In turn, and thanks to the development of new technologies, the agreement can establish more advanced procedures for electronic communication between the two parties. Thus, the Tax Agency sends the communication to the Commercial Registries of the provisional deregistration agreements and the corresponding rehabilitations in the Index of Entities, or the electronic procedure for the presentation of the declaration of bankruptcy of registered entities in the Commercial Registry.

This improvement in electronic communication will also include communication to the Commercial Registry of the revocation or rehabilitation of the NIF assigned to legal persons or entities and the submission of documents relating to seizures carried out by the Agency. The use of the electronic registry channel for sending information requests to the Registrars is also established.