S.L. 406.11 Art. 6Fraudulent application.

Where a refund has been obtained in a fraudulent or in any other irregular manner, the Commissioner shall proceed directly to recover the amounts wrongly paid and any penalties and interest imposed by regulation 7, without prejudice to the provisions relating to mutual assistance in the recovery of value added tax. In the case of fraudulent applications which cannot be made the subject of an administrative penalty, the Commissioner shall refuse for a maximum period of two years from the date on which the fraudulent application was made any further refund to the taxable person concerned. Where an administrative penalty had been imposed and interest has become due, but has not been paid, the Commissioner shall suspend any further refund to the taxable person concerned until it has been paid. Furthermore the Commissioner shall have the right to deduct such administrative penalty and interest from any future refunds claimed by that taxable person.