49Penalty for unpaid scheme debts

#### 49 Penalty for unpaid scheme debts (1) If an amount of a scheme debt that is payable by an entity remains unpaid after the day by which it must be paid, the entity is liable to a penalty at the rate of 16% per year on the unpaid amount. (2) The penalty is calculated from the day on which the amount becomes due to be paid. (3) The fact that a judgment is entered or given in a court for the payment of an amount of a scheme debt, or of a composite amount that includes an amount of a scheme debt, does not of itself cause the amount of a scheme debt to stop being unpaid for the purposes of this clause. (4) If the judgment debt bears interest, the penalty payable under this clause is reduced (but not beyond nil) by the following amount:  where: > scheme debt component means so much of the judgment debt as consists of a scheme debt. (5) For the purposes of this clause, the day on which a scheme debt is due to be paid is the day on which the DSAP payment or SDA payment concerned was paid. (6) This clause does not apply to a scheme debt that is attributable (in whole or in part) to an error made by the DAA or the industry services body, where the DSAP payment or SDA payment concerned was received in good faith. (7) The DSAP scheme or the SDA scheme (as the case may be) must empower the DAA to remit the whole or a part of an amount of penalty payable under this clause. (8) A penalty payable under this clause may be recovered by the Commonwealth as a debt to the Commonwealth. (9) This clause has no effect to the extent (if any) to which it imposes taxation (within the meaning of section 55 of the Constitution).