No Covid help after a financial penalty: Salzburg landlords complain to the constitutional court


        Entrepreneurs who have been convicted of an intentional tax offense are punished twice if they do not receive any corona aid.  That violates the principle of equality.        </p><div>
        <p>Federal corona aid is tied to the good tax behavior of entrepreneurs.  Anyone who has lost financial criminal proceedings in the past five years and received a fine of more than 10,000 euros is now looking through the fingers.  For this reason, Sasa Jakovljevic, owner of the Pescheria Backi in Salzburg, goes before the Constitutional Court: "We are punished twice. Once we paid a financial penalty and now we do not get any money from the corona aid."</p>            

His lawyer Stephan Kliemstein emphasizes that the refusal of aid is disproportionate, especially if the fine has long been paid off. In addition, there was no cap on financial penalties at all in the first few months of the corona crisis. In other words, even after minor offenses, you lost your right to corona aid. Therefore one will now sue.

As of January 1, 2021, the so-called Good Conduct Act regulated exactly which company forfeited its right to public aid. At the same time, as financial expert Gottfried Warter from the Salzburg Chamber of Commerce emphasizes, the limit with a penalty of 10,000 euros was introduced. No differentiation is made according to the size of the company. But at the state level, too, says Warter, funding is being looked at closely. 24 months retrospectively, for example, there should be no conviction for violations of labor and social law. There are around 8,500 financial criminal proceedings in Austria every year. Gerald Zmuegg from the consulting firm Finanzombudsmann in Vienna has had an expert report that around 40,000 companies could be affected by the exclusion of corona aid. Pescheria Backi boss Jakovljevic says that this threatened many bankruptcies because banks are reluctant to provide bridging loans in these cases.

And attorney Stephan Kliemstein emphasizes: “We assume that the double punishment of already canceled financial proceedings is unconstitutional and violates the principle of equality.”


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Covid financial penalty Salzburg landlords complain constitutional court


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