Attention! Social Security Fraud and Shell Companies: New SGK Sanctions!
The Social Security Institution (SGK) is resolutely combating social security fraud and shell companies. In this context, the "Platform for Monitoring Social Security Fraud and Shell Companies" has been established and sanctions have been tightened.
In recent years, the SGK has intensified its efforts to combat social security fraud and shell companies. In this context, the "Platform for Monitoring Social Security Fraud and Shell Companies" has been established and sanctions have been tightened. This study examines social security fraud and shell companies, SGK's sanctions and legal aspects.
What are Social Security Fraud and Shell Companies?
Social Security Fraud: Social security fraud occurs when a person does not work in a company under an employment contract, does not have an insurance status or capacity, but is only shown as insured on the books and documents. Social security fraud is often used on spouses, friends and relatives. In recent years, there has been an increase in social security fraud cases involving pregnant women. Pregnant women are insured by a company and thus become entitled to sickness benefits from the SGK. If they give birth in a private hospital, they can get a part of the treatment costs reimbursed by the SGK.
Shell Company: A shell company is a company that has never actually been established, but has been officially registered and registered with the SGK as such, giving the impression that it is operational and employs insured workers. In some cases, a real company may be in business for a while and then close or be transferred. If the SGK is not notified of the necessary changes in this case, it may be a shell company.
SGK Sanctions
When social security fraud and shell companies are detected, the SGK applies the following sanctions:
Against Social Security Fraudsters:
The identified sham services are cancelled.
The pension granted to them together with the sham services is terminated and the wrongly paid pensions are recovered together with legal interest.
If the eligibility conditions are no longer met after the cancellation of the sham services, the wrongly paid health costs (hospital, pharmacy, medical supplies) for the persons themselves or their beneficiaries/dependents are collected.
Unduly granted benefits and sickness benefits are recovered together with legal interest.
The professionals (tax advisors and auditors) responsible for the social security fraud declarations are also jointly and severally liable with the employer.
Criminal complaints are filed against the responsible persons with the Public Prosecutor's Office and court proceedings are initiated.
Against Shell Company Owners:
The registration, e-Sigorta password and company registration number of the company recognized as a shell company from the beginning are cancelled.
Premiums paid by a shell company are not refunded and are recorded as income by the SGK in accordance with the provisions of the Obligations Law.
Unjustified subsidies and support are recovered together with default interest and default surcharge.
The necessary steps are taken and communicated to the relevant tax office.
Legal Aspects
The sanctions applied in the context of combating social security fraud and shell companies are based on laws such as the Penal Code and the Social Security and General Health Insurance Law. According to these laws, social security fraud and the establishment of shell companies constitute crimes, and the perpetrators can be punished with fines and imprisonment.
How is Social Security Fraud Combated?
The SGK uses the following methods to combat social security fraud and shell companies:
Platform for Monitoring Social Security Fraud and Shell Companies: This platform uses data analysis and artificial intelligence to identify social security fraud and shell companies.
Controls: SGK control officers control companies that are considered to be at high risk of social security fraud and shell companies.
Notifications: Citizens can report social security fraud and shell companies.
