(a) An applicant or beneficiary who willfully makes any false or fraudulent statement or representation as to any fact required or appropriate to the determination of the qualifications of eligibility of such applicant or beneficiary for benefits under this subchapter, or for the continuation or extension of the benefits, or who willfully makes or presents any claim for benefits under this subchapter knowing the claim to be false, fictitious or fraudulent, is subject to a fine not more than $25,000 or imprisonment of not more than two years, or both the fine and the imprisonment.
(b) In addition to the penalties prescribed in subsection (a), any benefits granted under this subchapter to such applicant or beneficiary convicted under subsection (a) are deemed automatically revoked, without necessity for the procedures established under section 332i. All taxes that were otherwise due and payable by such an applicant or beneficiary but for the tax exemption benefits granted, become due and payable as of the date or dates when, but for such tax exemption, the taxes would have been due and payable, and the taxes must be assessed and collected in accordance with applicable tax laws in force for such date or dates. The amount of all subsidy benefits, based on income tax liability, actually received, constitute debts due and owing to the Government of the Virgin Islands as of the date or dates when payment of subsidy was made.