15Recovery by reduction of future liability

15 Recovery by reduction of future liability

Levy payers or charge payers (1) The Commonwealth, or another entity on behalf of the Commonwealth, may reduce an amount of levy or charge that a levy payer or charge payer is liable to pay to the Commonwealth, or to the other entity on behalf of the Commonwealth in accordance with an agreement under section 12, if: (a) the levy payer or charge payer has previously overpaid an amount of levy or charge to the Commonwealth or to that other entity on behalf of the Commonwealth in accordance with that agreement; and (b) the overpayment has not been refunded to the levy payer or charge payer. (2) The amount of the reduction must not exceed the overpayment. (3) The Commonwealth is not required to refund the overpayment to the levy payer or charge payer to the extent of the reduction.

Note: Example: A levy payer is liable to pay $100 levy to the Commonwealth.

Note: In a previous transaction the levy payer was liable to pay $140 levy to the Commonwealth but paid $200. The Commonwealth has not yet refunded the $60 overpayment to the levy payer.

Note: The Commonwealth may reduce the $100 levy the levy payer is liable to pay to $40. The Commonwealth is no longer required to refund the $60 overpayment to the levy payer.

Collection agents (4) The Commonwealth, or another entity on behalf of the Commonwealth, may reduce an equivalent amount that a collection agent is liable to pay to the Commonwealth, or to the other entity on behalf of the Commonwealth in accordance with an agreement under section 12, if: (a) the collection agent has previously overpaid an equivalent amount to the Commonwealth or to that other entity on behalf of the Commonwealth in accordance with that agreement; and (b) the overpayment has not been refunded to the collection agent. (5) The amount of the reduction must not exceed the overpayment. (6) The Commonwealth is not required to refund the overpayment to the collection agent to the extent of the reduction. (7) If the equivalent amount the collection agent is liable to pay is reduced, the levy payer or charge payer for the levy or charge to which the equivalent amount relates is discharged from liability to pay the levy or charge to the extent of the reduction.

Note: Example: A levy payer is liable to pay $100 levy and a collection agent is liable to pay an equivalent amount equal to $100 to the Commonwealth.

Note: In a previous transaction the levy payer was liable to pay $140 levy but the collection agent, on behalf of the levy payer, paid $200 to the Commonwealth. The $60 overpayment has not been refunded to the collection agent.