Where it appears to the Commissioners that a person has failed to satisfy one or more of the conditions specified in a direction given under regulation 3(2) above, they may give notice in writing to that person withdrawing the incentive payment and, where a payment has already been made, may assess the amount so paid and notify it to him.

The Commissioners may notify an assessment under paragraph (1) above at the same time as they give notice withdrawing the incentive payment.

Subsections (2) to (4) and (8) of section 78A of the Value Added Tax Act 19944 (assessment for interest overpayments) apply in the case of an assessment under paragraph (1) above as they apply in the case of an assessment under section 78A(1) of that Act.