N.Y. Tax Law § 39-a: 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;

and

(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.