107Late payment penalty

107  Late payment penalty Late payments by levy payer  (1) If an amount of levy that is payable by a person remains unpaid after the time when it became due for payment, there is payable by the person to the Commonwealth, by way of penalty accruing from the time the levy became due for payment until it is paid in full, an amount worked out as follows:  (a) during the month in which the levy became due for payment, the amount of penalty accrues at the rate of 2% per month on the levy due;  (b) during the next and each subsequent month, the amount of penalty consists of the sum of:  (i) each amount that accrued during a previous month; and  (ii) the amount accruing during that month at the rate of 2% per month on the sum of the amount of levy then payable and penalty payable at the end of the previous month. Late remission by collection agent or collection sub‑agent  (2) If an amount of levy that is required by clause 97, 98 or 99 to be remitted by a collection agent or a collection sub‑agent remains unremitted after the time when it was required to be remitted, there is payable by the agent or sub‑agent to the Commonwealth, by way of penalty accruing from the time the levy was required to be remitted until it is remitted in full, an amount worked out as follows:  (a) during the month in which the levy was required to be remitted, the amount of penalty accrues at the rate of 2% per month on the unremitted levy;  (b) during the next and each subsequent month, the amount of penalty consists of the sum of:  (i) each amount that accrued during a previous month; and  (ii) the amount accruing during that month at the rate of 2% per month on the sum of the levy then unremitted and penalty payable at the end of the previous month.  (3) The Secretary may extinguish a person’s liability for the whole or a part of an amount of penalty payable under this clause. Division 7—Recovery of levy debts