S.L. 406.10 Art. 24Recovery, administrative penalty and interest.

(1) Where a refund has been obtained in a fraudulent way or otherwise incorrectly, the Commissioner shall proceed directly to recover the amounts wrongly paid and any penalties and interest imposed in accordance with sub-regulation (2), without prejudice to the provisions on mutual assistance for the recovery of VAT.

(2) Where a refund has been obtained in the circumstances mentioned in sub-regulation (1), an administrative penalty equivalent to twenty per cent of the amount unduly received shall become due, together with interest at the rate of zero point seven five per cent (0.75%) per month or part thereof which interest shall start to run from the date of payment of the amount unduly received to the date when such amount together with the administrative penalty and interest is paid back to the Commissioner:

Provided that, the amount of such administrative penalty and interest taken together shall not exceed the amount obtained in a fraudulent or any other irregular manner.

(3) Where an administrative penalty or interest has been imposed but has not been paid, the Commissioner may suspend any further refund to the taxable person concerned up to the unpaid amount.