To mitigate the economic impact of the corona pandemic, the government has launched numerous assistance programs. Anyone who has provided false information must expect trouble due to subsidy fraud.
The government aid during the corona pandemic was intended to be quick and as uncomplicated as possible so that companies could get through the crisis and not fall into insolvency one after another. A wave of insolvencies was avoided, and now the authorities are retrospectively looking more closely to see if the applicants actually met the conditions for the subsidies or if the state support was obtained through false information. Affected companies should take these reviews seriously. Anyone who has provided false information must expect to be reported for subsidy fraud, warns Rechtsanwalt Michael Rainer, MTR Legal.
Thousands of investigations are said to already be underway, and the accusation of subsidy fraud can quickly arise. It should be noted that it is not only punishable to intentionally provide false information, but even careless actions can lead to trouble. The Federal Court of Justice clarified with its ruling on May 4, 2021, that subsidy fraud occurs when false information is given during the application for corona aid (Case No. 6 StR 137/21).
If the authorities discover indications of false information during the review of applications for corona aid, they will expand investigations and, for example, also examine the company’s tax information. If it leads to a conviction, severe penalties are to be expected.
If someone has applied for corona aid and later realizes that at least partly incorrect information was provided, they are obliged to correct the information retrospectively. This correction obligation under penalty can also exist if the application requirements have subsequently partially ceased to apply.
Not only the applicant can be held accountable for false information, but the respective company may also face a fine.
Therefore, accusations of subsidy fraud should not be taken lightly and those affected should act promptly. Rechtsanwälte experienced in business criminal law can provide advice.