(1) Where the amount of money recovered or, of security furnished, is less than the arrear taxes, such amount of money or of security shall, in the prescribed manner, be disposed of in the following order, namely:-

(a) firstly, to reduce the amount of payable interest;

(b) secondly, to reduce the amount of penalty or fine; and

(c) thirdly, to reduce the amount of VAT, supplementary duty or turnover tax.

(2) Where the amount of money recovered or, of security furnished, is more than the arrear taxes, the excess amount of money or of security, left after a disposal of such amount under subsection (1), shall be given back to the defaulting taxpayer or the guarantor.

(3) The Commissioner shall, in such manner and within such time as may be prescribed, inform the defaulting taxpayer of the disposal of the amount, of money, or of security, under subsection (1) and (2).