This is evident from the research of RTL Z.
Before Kaag became a minister, he put his business and financial interests into a foundation. This is mandatory, so as long as you are a minister you have no say. This should prevent conflicts of interest.
Compulsory registration
From this year, it is mandatory for all companies and foundations to declare honestly who is the last beneficial owner, the UBO (last beneficial owner). This legislation must ensure that, for example, banks and supervisors can find out who the real owner is. This is to prevent tax evasion and money laundering.
Research on this site shows that Kaag is not registered as a UBO of its own foundation. The three independent directors were instead designated as beneficial owners.
Not according to the rules
And this is not by the rules. Anyone who has, directly or indirectly, a stake of more than 25 percent must be declared interested. The law clearly prescribes that anyone who is entitled to a foundation’s money after its dissolution, which happens when Kaag is no longer a minister, be the owner of it.
This turns out to be the case. Although the deed of incorporation does not literally state that Kaag is entitled to the “surplus after liquidation”, it states that the destination of the surplus “will be determined according to the purpose of the foundation.” Since the purpose of the foundation is to take care of the founder’s economic and / or financial interests, it is clear that the money belongs to her.
New insights
In response to RTL Z’s questions, the ministry announced that after consulting the foundation’s board members and the notary’s office that dealt with UBO registration, it was decided to designate Kaag as UBO after all, because on closer inspection they did it indirectly own it.
“After consulting the directors of St Jude and the notary, it was agreed that, due to the representation of interests, the founder can be expected to be an indirect beneficiary, making him the UBO rather than the directors.”
Mistake
“It is quite a mistake that the minister himself made a mistake with this,” says political journalist Roel Schreinemachers. “Although she did not rig this building herself, but this was done in her name by the notary’s office.”
“Kaag has insisted for some time that it must always be clear who is the last stakeholder with this type of construction. So it is painful that the minister himself does not seem to have organized it properly.”
Technical defense
According to the ministry, the fact that the minister was not initially considered the last beneficial owner of the foundation she set up to represent her financial interests is due to the fact that the notary profession is of the opinion that “technically” she is not automatically entitled to the surplus after dissolution, but that a decision must first be made by the board.
The foundation and the notary profession are therefore of the opinion that this should be seen differently in the case of Kaag.
€ 22,500 fine
The Ministry of Finance also states that the responsibility for proper registration rests with the Kaag foundation and not with Kaag itself. “The foundation must ensure that UBO data is always correctly and fully recorded.”
A significant penalty is envisaged for non-compliance with UBO regulations. The Economic Execution Office of the Revenue Agency, which falls under the Ministry of Finance, can impose a financial penalty or an ordinance with a penalty of 22,500 euros. Offenders are usually given the opportunity to correct the statement first, the ministry said.
St. Jude Foundation
Minister Kaag founded the St Jude foundation late last year. The articles of association show that the foundation is in charge of managing an investment portfolio of the minister and managing and renting a second home in Switzerland.
