74. False declaration by the recipient of a supply.—

(1) If a supplier mistakenly treats a taxable supply as an exempted or a zero-rated one as a result of a  false declaration with an intent to cheat by the recipient of such supply, the Commissioner may, after giving such recipient an opportunity of being heard, make a tax determination against such recipient of such supply for payment of the payable VAT in respect of such supply, including any payable interest or monetary penalty arising out of the late payment of the VAT, and such tax determination shall be treated as a determination of VAT payable by such recipient, whether registered or not.

(2) The Commissioner shall serve on the recipient of a supply a notice of tax determination which shall‚ in addition to other necessary matters, contain the following information, namely:—

(a) the reason for such tax determination;

(b) the amount of VAT payable as a result of such tax determination;

(c) the date on which such VAT shall be payable; and

(d) the time and place of filing appeal against such tax determination.

(3) Nothing in sub-section (1) shall prevent a Commissioner from recovering the payable VAT, interest or monetary penalty in relation to such supply from a supplier, and from recovering a portion of the payable amount from the supplier and the other portion from the recipient.

(4) If a supplier pays to the Commissioner, as a result of any fraudulence or a false statement made by a recipient of a supply, an amount of VAT, interest, or monetary penalty for such supply, he may recover the amount so paid from the recipient of such supply.