To mitigate the economic impact of the Corona pandemic, the state has launched numerous aid programs. Anyone who has provided false information must expect trouble due to subsidy fraud.
The state aid during the Corona pandemic was intended to flow quickly and as uncomplicatedly as possible so that companies could survive the crisis and not fall into insolvency one after another. A wave of insolvencies was avoided and now the authorities are looking more closely at whether the applicants actually met the requirements for the subsidies or whether the state support was obtained with the help of false information. Affected companies should take the inspections seriously. Anyone who has provided false information must expect to be charged with subsidy fraud, warns attorney Michael Rainer, MTR Legal.
Thousands of investigations are said to be already underway, and the accusation of subsidy fraud can arise quickly. It should be noted that not only is it criminal to have knowingly provided false information, trouble also threatens for acting recklessly. The Federal Court of Justice has already made it clear by resolution of May 4, 2021, that subsidy fraud occurs when false information is provided when applying for Corona aid (Ref. 6 StR 137/21).
If the authorities discover evidence of false information during the review of applications for Corona aid, they will expand the investigations and, for example, also examine the company’s tax statements. If a conviction occurs in the end, heavy penalties are to be expected.
If someone has applied for Corona aid and later realizes that they have made at least some incorrect statements, they are obliged to correct the information retroactively. This correction obligation, punishable by law, may also exist if the application requirements have subsequently become partially obsolete.
Not only can the applicant be held accountable for the false information, the respective company may also face a fine.
Therefore, allegations of subsidy fraud should not be taken lightly and those affected should act immediately. Attorneys experienced in economic criminal law can provide advice.
