Section 426 - Interest on excess refund.

Taxpayer must repay interest on excess refunds under section 270(1); simple interest 0.5% monthly until regular assessment

Where a taxpayer receives a refund under section 270(1) but no refund is due on the subsequent regular assessment, or the refund exceeds the amount refundable on regular assessment, the taxpayer must pay simple interest at 0.5% per month (or part) on the whole or excess refunded from the refund date until the date of the regular assessment. If a later order under the listed review or appeal provisions upholds the refund in whole or part, the interest under this provision will be reduced accordingly. A first-time assessment under section 279 is treated as a regular assessment for these purposes.