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This entry was published on 2014-09-22
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Penalties for fraud in the START-UP NY program
§ 39-a. Penalties for fraud in the START-UP NY program. If the
commissioner of economic development on his or her own initiative or on
the recommendation of a sponsoring campus, university or college finally
determines that any such business participating in the START-UP NY
program authorized under article twenty-one of the economic development
law has acted fraudulently in connection with its participation in such
program, such business:

(a) shall be immediately terminated from such program;

(b) shall be subject to applicable criminal penalties, including but
not limited to the felony crime of offering a false instrument for
filing in the first degree pursuant to section 175.35 of the penal law;

(c) shall be required in that year to add back to tax the total value
of the tax benefits described in section thirty-nine of this article
that such business has received and that the employees of such business
have received up to the date of such finding. The amount required to be
added back shall be reported on such business's corporate franchise
report if such business is taxed as a corporation or on the corporate
franchise tax reports or personal income tax returns of the owners of
such business if such business is taxed as a sole proprietorship,
partnership or New York S corporation.