New Law on Foundations to prevent fraud by non-profit entities.
The Council of Ministers has approved the Draft Bill of the Law of Foundations with the aim of guaranteeing a better exercise of the right of foundation and compliance with the obligations deriving therefrom.
The interested party in creating a foundation shall contact the Protectorate to request a report on suitability, adequacy, sufficiency and feasibility, which must be resolved within a maximum period of three months.
The Register of Foundations will contain the relevant acts relating to all foundations operating in Spanish territory, which will allow to comply with the needs of publicity and transparency that provide greater control of the use made of the subsidies and tax benefits they receive. The most relevant information about the foundation will be published on the website.
In order to fight against fraud and avoid the instrumental use of the foundation for the development of activities that are not related to the purposes that justify it, the approved regulation differentiates between the foundation's own activities, which the foundation carries out for the fulfillment of its purposes, and the commercial activities, which can be carried out as a form of financing the foundation.
It shall be obligatory to present annual accounts or action plans for three continuous fiscal years.
Only foundations that meet the legal requirements will benefit from grants and tax benefits.
For those who fail to comply, a penalty system is introduced, ranging from fines of between 1,000 and 30,000 euros to loss of office and disqualification from their post for five or ten years.
NEWS SOURCE: elderecho.com
