Charges Filed Against Multiple Hungarian Wineries Over Alleged Fraud Involving State and EU Funds
Several wineries are implicated in a case involving fraudulent activities related to domestic and European Union subsidies, with charges filed against eleven individuals.
The Budapest Public Prosecutor's Office has filed charges against eleven individuals connected to budgetary fraud involving multiple Hungarian wineries, as reported in local media.
Among the accused is the leader of a significant winery located in Szekszárd, although their identity has not been disclosed.
According to the indictment, the companies involved are accused of generating false invoices for overvalued or uncompleted work and unwarranted equipment acquisitions in order to secure domestic and EU subsidies, as well as to substantiate performance claims.
Furthermore, the representatives of these companies allegedly improperly deducted the VAT amounts from the invoices, constituting tax fraud.
The larger Szekszárd winery in question has previously successfully applied for EU funding multiple times.
During the evaluated period from 2019 to 2021, the winery, in collaboration with two other companies, won a total of three subsidy applications that amounted to nearly 240 million Hungarian Forints.
The largest grant was awarded for research and development purposes.
According to the application platform, a total of 209.6 million Hungarian Forints was designated for the development of a "professional and marketable grape disease forecasting and decision-support system based on innovative technical and scientific observations of plant pathology."
Inquiries regarding the application processes were directed to the Ministry of Interior and Territorial Development, as well as the National Tax and Customs Administration, but neither office has responded.
The Budapest Court has stated that an initial trial date has yet to be set.
Among the accused is the leader of a significant winery located in Szekszárd, although their identity has not been disclosed.
According to the indictment, the companies involved are accused of generating false invoices for overvalued or uncompleted work and unwarranted equipment acquisitions in order to secure domestic and EU subsidies, as well as to substantiate performance claims.
Furthermore, the representatives of these companies allegedly improperly deducted the VAT amounts from the invoices, constituting tax fraud.
The larger Szekszárd winery in question has previously successfully applied for EU funding multiple times.
During the evaluated period from 2019 to 2021, the winery, in collaboration with two other companies, won a total of three subsidy applications that amounted to nearly 240 million Hungarian Forints.
The largest grant was awarded for research and development purposes.
According to the application platform, a total of 209.6 million Hungarian Forints was designated for the development of a "professional and marketable grape disease forecasting and decision-support system based on innovative technical and scientific observations of plant pathology."
Inquiries regarding the application processes were directed to the Ministry of Interior and Territorial Development, as well as the National Tax and Customs Administration, but neither office has responded.
The Budapest Court has stated that an initial trial date has yet to be set.
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