On 1 July 2013, the Notification requirements of subsidies granted by Ministers (Administrative Penalty) Act (Act) entered into force. Although the Act has a limited content, it has potentially major consequences for recipients of subsidies. The fact is that the Act introduces a new sanction. If a recipient of a subsidy has failed to comply with its notification requirements or has not done so on time, an (administrative) fine may be imposed. This means that in addition to the removal of undue advantage due to (partial) withdrawal of the subsidy, a recipient may also suffer financial loss because a fine may be imposed.
Date: 27 December 2013
Author: Christien Saris