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7.11.2 Non-compliance Department's right to recover an overpayment overrides any contract the debtor may have with the person or institution holding the debtor's money (unless other Commonwealth law prevents its payment). The legislative authority for this is contained in subsection 205A(7) VEA. a person fails to comply with the requirements of a payment notice, subsection 205A(3) VEA provides that a 'natural' person may incur a fine of up to $2,000 or imprisonment for one year, or if a 'body corporate', a fine of $10,000. 205A(8) VEA provides that where a person is capable of complying with a payment notice but fails to do so, that person is deemed to be liable for the part of the debt covered by the notice.