1.Payments shall be calculated on the basis of amounts found to be eligible during the administrative checks referred to in Article 48.
The competent authority shall examine the payment claim received from the beneficiary, and establish the amounts that are eligible for support. It shall establish:
the amount that is payable to the beneficiary based on the payment claim and the grant decision;
the amount that is payable to the beneficiary after an examination of the eligibility of the expenditure in the payment claim.
If the amount established pursuant to point (a) of the second subparagraph exceeds the amount established pursuant to point (b) of that subparagraph by more than 10 %, an administrative penalty shall be applied to the amount established pursuant to that point (b). The amount of the penalty shall be the difference between those two amounts but shall not go beyond full withdrawal of the support.
However, no penalties shall be applied if the beneficiary can demonstrate to the satisfaction of the competent authority that he is not at fault for the inclusion of the ineligible amount or if the competent authority is otherwise satisfied that the beneficiary concerned is not at fault.
2.The administrative penalty referred to in paragraph 1 shall be applied mutatis mutandis to non-eligible expenditure identified during on-the-spot checks referred to in Article 49. In that case the expenditure examined shall be the cumulative expenditure incurred for the operation concerned. This is without prejudice to the results of the previous on-the-spot checks of the operations concerned.