innoscripta Rebuts Tax Probe Allegations as Shares Rebound From 52-Week Low

innoscripta denies wrongdoing in a research-grant tax investigation, says operations continue, and flags a shareholder product presentation.

innoscripta is pushing back against allegations tied to a tax investigation, defending the structure of its advisory work while insisting that its day-to-day operations remain untouched. At the heart of the company's argument is the two-step process behind applications for state research grants.

According to the firm, the substantive assessment of eligibility is carried out first by the Bescheinigungsstelle Forschungszulage (BSFZ), the certification body for research grants. Only after that step does the client's tax office formally approve the allowance. In nearly all cases, innoscripta's contractual fee claim arises as soon as the BSFZ certificate is issued.

Management Points to Long Track Record of Audits

The company, led by CEO Michael Hohenester, stresses that based on current knowledge no transactions from the ongoing financial year are affected by the authorities' inquiries. A former employee who once handled the cases in question has not been under contract with the firm for years, management added.

innoscripta also points to its history: several thousand research grants have been approved for clients in the past and confirmed by tax authorities across numerous company audits. The group has additionally undergone repeated external reviews, including ahead of its stock market debut in May 2025. Business continues without restrictions, according to the company, which says it is cooperating with investigators.

The proceedings rest on orders issued by the Amtsgericht Schwäbisch Gmünd over suspicions that clients were aided in obtaining unjustified tax benefits. innoscripta declined to comment further on the substance of the case, citing the ongoing investigation.

Raids in Tutzing and Munich Trigger Sharp Swings

The searches at the company's sites in Tutzing and Munich sent the stock on a volatile ride. On Friday, the shares closed at EUR 41.05, a gain of 9.0 percent on the day, as some buyers stepped back in following a slide to a 52-week low of EUR 31.05. Even after that rebound, the stock remains far below its 52-week high of EUR 137.00.

Management moved quickly to calm nerves the day after Thursday's raids, saying the operating business was continuing and that, as things stand, no matters from the current financial year were affected. Alongside that reassurance, the company held out the prospect of a product presentation for shareholders, with dates still to be announced.

Reassurance Is Not the Same as Clarity

Presenting the affair as the isolated misconduct of individual employees looks like a classic reflex in a crisis. What is at stake is the suspicion of tax offenses: clients are alleged to have been helped to secure unjustified tax advantages in connection with research grants. Such allegations strike at the core business model of an advisory and software company.

That operations formally continue is a given, not a strategic achievement. When authorities investigate suspected complicity in unjustified tax benefits, customer trust is on the line. The open question of the financial and liability consequences weighs far more heavily than the assurance that no irregularities have been found so far in the current financial year. The company itself conceded that a final assessment of the impact is not yet possible.

Announcing a product presentation for shareholders in the middle of this severe test leaves a stale aftertaste. The impression arises that future topics are meant to distract from the pressing problems of the present. Investors do not need new product features right now; they need unsparing transparency about the scope of the official investigation. As long as it remains unclear whether, and to what extent, back payments, fines or recourse claims could loom, every operational signal is secondary. The risk lies not in the daily business but in the outcome of the proceedings.

Caution Still Warrants the Upper Hand

On balance, the risk-reward ratio currently argues clearly against getting involved. The recent price recovery shows that speculative buyers are betting on a swift resolution of the allegations. But tax investigations typically drag on for months.

Until the accusations are fully refuted or the financial consequences can be reliably quantified, the stock remains highly risky terrain. Investors should not be dazzled by the announced shareholder presentation and would do well to stay on the sidelines.